Total supply exceeded 1 million sqm in Vilnius office market
A watershed was reached in 2022 as the last projects delivered increased the total market stock to 1 million sqm. New supply of about 100,000 was seen for a third year in a row. Supply grew 104,300 sqm in 2022. Total take-up of 123,000 sqm last year was primarily driven by the tech sector, where demand is supported by steadily growing exports of IT services form Lithuania.
• The second half of the year was more active than the first as 6 new unique buildings with 70,000 sqm of space began receiving tenants.
• Take-up was higher than forecast and in line with the average for recent years.
• While the overall annual rate of vacancy fell from 7.8% to 6.7%, the level for class A offices rose. The vacancy rate in the prime segment was 7.2% at year-end.
• Rent indexation and additional costs were the most discussed topics last year in considering office relocation and lease budgets.
• Developers, facing long-term low vacancy in CBD, now have a pipeline of new office and mixed-use projects planned for delivery in 2024-2025 and later.