According to the latest CBRE Riga report, total stock of real estate has grown by 35,000 sqm and exceeded 739,000 sqm at the end of 2020. GBS centres are expanding their presence in Riga (Swisscom, Norwegian Air Resources and others).
The long waited Z-Tower multifunctional complex building (GLA 24,000 sqm) and newly developed Origo One office building (GLA 11,000 sqm) were delivered to the market at the beginning of 2020.
Vacancy rates increased in 2020. By the end of 2020, the rate stood at ca.9%, or more than double the y/y figure.
Yearly take-up has been higher than in 2019 and 2018, standing at ca. 35,000 sqm at the end of the year.
Unseen volume of sublease options were available on the market during 2020.
Rent rates remain stable: 14.0-17.0 EUR/sqm/month for class A offices, 8.0-14.5 EUR/sqm/month for class B offices.
Despite interruptions and the short-lived shut down of the economy, the investment volume in Latvia reached EUR 310 mln, equivalent to the previous year's volume. The office market, as usual, revealed strong confidence with a share of 29% of total investment volume.
The main target for core and core+ investors was prime offices located in the Old Town or close to it. Investor appetite for prime office assets should continue through 2021.
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