Real estate for your business

Real estate market remains active in Latvia. The office market in Riga is expected to shift from a tenant market to a landlord market in 2024, as no new developments are being started, while demand for newly developed offices persists. Lack of newcomers limits the development activity across the Baltics, especially in the Riga office and industrial segments.

Offices (2023 Q4)

Total stock: 647 sqm
Under construction: 99 sqm
Vacancy rate: 21,6%

With completion of the Elemental BC and V118 in Skanste in Q4 2023, total addition to the Riga office stock reached 73,000 sqm in 2023. With increase of new good-quality stock, part of Riga existing office stock has been downgraded. Currently, 99,000 sqm of leasable office space remains under construction, 64% of which is expected to be completed during 2024, followed by the Preses Nams, the largest upcoming project developed by Lords LB, set for 2025. 

Take-up activity surged by 40% y-o-y, exceeding 54,000 sqm with Verde office complex reaching the 90% pre-lease level prior to full commissioning. Asking rent rates in new developments continue to trend upward, while existing older stock owners are still hesitant to adjust their rates. 

The State Police's 12-year 4,000 sqm lease in Upmalas Biroji is the year's largest deal, signalling increased interest from the public sector. 2023 showed that all large-scale office projects require a coworking space, thus in Q4, Skanstes City opened SPARK, their own coworking space. Riga still lacks newcomers, however from recent entries biotech company “Roche Services & Solutions” announced signing a lease with Verde for 1,500 sqm.

Industrial (2023 Q4)

Total stock: 1518 sqm
Pipeline: 107 sqm
Vacancy rate: 2,9 %

In 2023, Riga industrial stock increased by GLA 114,000 sqm with most of the volume coming from two built-to-suit projects developed by VGP. With East Capital acquisition of Rimi LC and Piche, Sirin and VGP actively developing, industrial property owners top has changed: VGP moved to the second position (+4), East Capital to the third (+12) and Sirin to the sixth (+2). Q4 2023 saw completion of the next stage of Lidostas Parks by Piche in Riga region. The development market remains active with around GLA 107,000 sqm under construction and Piche and Sirin being biggest developers, both developing in Airport area. Demand for industrial premises in 2023 remained at the 2019-2020 level with more than 90,000 sqm of space leased in speculative properties, while including built-to-suit properties total take-up volume exceeded 160,000 sqm. Signed lease volume continues to highly correlate with a development of a newly built speculative stock. Rent rates remain constant, averaging 4.5-5 EUR/sqm, and it is expected that this stability will continue in 2024.

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.

 

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