Vilnius office market vacancy rate will soon reach the European average
Newsec Vilnius Office Market Outlook provides a unique opportunity to follow Vilnius office market development. The report presents the latest market trends and forecasts, office rental rates and changes, outlook of current new office projects and their developers.
KEY INSIGHT
- In Q3 2020, supply in Vilnius’s modern office market grew by 50,100 sqm or 6.7%. That is the most space added in one quarter since the Quadrum and City projects came to market 4 years ago.
- Construction work on office projects in Vilnius did not stop, though there were no official announcements of the start of construction for new projects. At the end of Q3, some 236,800 sqm of office space was under construction in Vilnius.
- Take-up since the start of the year exceeded 77,000 sqm as the leasing market slowed by about 15% versus last year. In Q3 2020 the leasing market slowed by 53% compared to the previous quarter, with take-up of 13,300 sqm.
- The overall vacancy rate increased in Q3 2020 from 3.3% to 4.9%. In class A it rose from 2.1% to 3.2% and in class B from 4.3% to 6.3%. Space available for lease in the modern office segment grew more rapidly due to significant growth of new supply and slowing of the leasing transactions market
- The year-end vacancy level is likely to increase to 7-8%. Growing supply will remain the main reason tenants see increasing choice.
- the most likely vision of the future is that the main motive for needing to maintain an office will become cultivating a company’s culture and identity.