Real estate for your business

Real estate market remains active in Latvia. Office stock experienced the largest increase in the last 10 years, coworkings witnessed a rapid bloom and the warehouse and industrial property is keeping up with demanding and delivering modern energoefficient premises. As well as the greenfields keep in a variety of choice and municpalities and special economic zones are ready to offer incentives and real estate rebates for their owned land properties.

Offices (2023 Q2)

Various small-scale new and renovated office buildings were put into operation in Riga during Q2 2023 – 3 speculative projects (Barons Kvartāls – Barona 155, Il Giardino and Pērses 2A) and one B-t-S project (Katlakalna 11E). Overall, 11,790 sqm of leasable office space was added to the market in Q2. With Baltic Re starting with the Daugavas Skats project, 145,740 sqm of office space remain under construction in Riga.

Pre-lease activity remains buoyant – more than half of space in Elemental BC is secured with pre-leases while pre-lease activity in other new developments has also improved. Around 60% of the projects under construction are planned to be delivered by year-end and current tenant profile includes mainly existing companies that are searching for newer, energy-efficient premises.

Class A stock is starting to experience a major shift as even 
without the recently commissioned Verde project approx.  GLA 100,000 sqm is under construction with planned  completion in the next 2 years. Therefore, taking into account current structure, Class A stock is facing a strong increase in total area by approx. 40%. 

As a result, vacancy in older office stock is growing. However, some tenants are reluctant to relocate if landlord is ready to invest into the building and office space renovation. Competition for tenants remains strong. As expected, rent rates in both Class A and B1 office buildings have slightly increased. 

Industrial (2023 Q2)

In Q2 2023, two large scale projects were commissioned in Riga region: VGP Park Tiraines (28,000 sqm; B-t-S project) in Riga and third and the last stage of Rumbula Logistics Park developed by Sirin Development (25,000 sqm; speculative project). DV8 stock-office complex returned to a “under construction” stage with planned completion by Q4 2023. Additional 51,000 sqm of leasable space is forecast for delivery in 2023. Demand remains high for small size premises and premises with specific solutions which are currently not available on the market. As tenants are not willing to wait for new smaller units, relocation to non-professional objects has therefore increased. In Q2 2023, take-up amounted to ca 14,500 sqm, reaching new upper level of rent rates. Due to lack of new options on the market, rents are slightly increasing with prime level varying in the range of 4.5 to 5.5 EUR/sqm. Vacancy increased due to new projects entering the market and is expected to slightly increase in following quarters due to relocation to new premises.

Source: Colliers Baltic Real Estate Market Snapshot | Q2 2023

Coworking

In Latvia, there is a variety of modern coworking spaces. One might think that all opporrtunities are concentrated in the capital – Riga. But if you take a look at our interactive real estate map, you can find Latvia’s territory covered by modern coworking spaces. Some of them offer their services free of charge. You can find a more detailed information about the commercial terms of each coworking space by browsing through the map.

See coworking spaces here.

Contacts

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