Tallinn office market stayed active despite economic slowdown
Economic events tend to impact the office market with lag, which might be one reason the market has stayed relatively active. Around 50,000 sqm of new supply is expected in 2023 and by the end of the year office supply should exceed the level of 1 million sqm in Tallinn.
• Total office vacancy stood at 6.5% at the end of Q4 2022, down 0.5% point from the start of 2022.
• Rents for both A and B class offices increased slightly: class A rents are generally in the range of 16.4 – 22.0 EUR/sqm and class B in range of 11.0 – 17.5 EUR/sqm.
• About 50,000 sqm was delivered in 2022, most in the second half of the year.
• Tenants pay more attention to providing quieter office environment for employees.
Companies are including more common areas in their offices where people can socialize during and after working hours.