COMPRESSED-SPRING EFFECT IN THE VILNIUS OFFICE MARKET
While nobody rushed to predict what 2020 would bring for the office market, the year ended better than expected. Take-up of office space exceeded the five-year average and surpassed 100,000 sqm. At present, a compressed-spring effect is still felt in the office market, as decisions on office leasing needs which were delayed during the pandemic should resume in the second half of the year, the international real estate advisory firm Newsec notes.
- The total of premises leased in 2020 was a full 16% more than the average for the last five years and exceeded 100,000 sqm.
- High-value lease transactions were concluded in 2020 by international service companies like Western Union, Telia Global Services Lithuania, Devbridge, Metso and others, which sought bigger spaces for expansion.
- More than 46,000 sqm of leasable space was added to the Vilnius office market last quarter, and in the past year a total of 115,900 sqm of new space was brought to market.
- Most developers are not hitting the breaks but are continuing to implement planned projects.
- Strong demand forces: Belarusian companies and businesses that have outgrown coworking spaces.