KEY POINTS: -Office market -Retail market -Investment market -Industrial and logistics market
Demand for office space remains high, thus continually stimulating growth of rent rates and decrease in vacancy rates in the Baltic States.
High demand for Class A office buildings remains constant in Tallinn in 2014. Practice has shown that the absorption period of new buildings speeds up once buildings are completed. For example, the new Sakala 10/Kentmanni 4 Business House, completed in November 2013, was fully leased as of Q1 2014. Class B1 office premises remain continuously popular in Tallinn among tenants who seek quality but prefer lower rent rates. Vacancy in the given class of premises is continuously decreasing, pushing asking rent rates up (Class B1 asking rent rates saw an increase of 8-12% on average compared with the beginning of 2013).
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