Last year, six new office projects were completed in Vilnius, which provided 69,200 sqm of additional modern office space or 53% more, compared to the amount of space supplied in the previous year.
There are 258,300 sq m of office space under construction or 67.9% more, compared to the same period a year ago. 113,900 sq m of space has been announced for delivery this year.
A class offices constitute 46%, while B class offices 54% of total stock. The current pipeline should approximately keep the existing balance.
In 2019, modern office take-up constituted ca. 102,600 sq m, which was 53% more than a year ago. The existing take-up pace may be difficult to maintain over an extended period.
IT and Global Business Services sector companies have dominated demand. These industries constituted 38% and 31% respectively of the total take-up.
The vacancy rate reached 3.2% and was 1.7 p.p. lower than a year ago. The vacancy rate should increase significantly in the upcoming years.
The rent price range for B class office premises is between 10.0 – 14.0 EUR/sq m/month, while a rent price range for a typical A-class office is currently between 15.0 – 17.0 EUR/sq m/month.
In 2019, office investments in Vilnius amounted to almost EUR 348 mln. or 18.6% more than a year ago. Prime office yields have settled at 5.8%.