KAUNAS OFFICE OUTLOOK 2018 H2

Transcription

1 KAUNAS OFFICE OUTLOOK 2018 H2 Prime Business Centre, Savanoriu ave. 367, Kaunas

2 MODERN OFFICE PREMISES SUPPLY By the end of 2018, the stock of modern office premises in Kaunas totalled 182,000 sqm, or 0.65 sqm per capita. In the second half of 2018 the stock increased only by 2,700 sqm as couple of openings were rescheduled to Two new B class office projects were completed: K26A (1,200 sqm) and V. Krėvės 57B (1,500 sqm). In total, eight new office projects were completed over Combined, this brought approx. 36,400 sqm of new leasable area, which was slightly less compared to a recordbreaking 43,900 sqm in Most of the Kaunas office stock remains B class (94%) with Arka and Nemuno 3 being the only A class buildings. In 2019, Magnum and BLC2 are going to increase Kaunas A class stock by approx. 34,000 sqm, combined per both buildings. It is forecast that by the end of 2019 A class buildings will account for almost 20% of the modern office stock. Based on planned office stock pipeline, Kaunas market will experience a significant increase in the modern office stock supply in 2019, with approx. 68,000 sqm of market supplements; however, there is a possibility that some buildings will be delayed to 2020 as it happened in VACANCY By the end of 2018, the average vacancy rate in Kaunas was 11.9 % which is slightly higher than that by the end of 2017 (11.0%). The market is in the transition phase which is fueled by the steadily-increasing modern office stock, natural tenants turnover, tight labor market and relocations from older office buildings to the new ones. Even though the vacancy rate is above the 10% margin, all A class premises in Kaunas are fully rented out. Such demand for high quality office stock prompted development of new business centers such as Magnum, BLC2 and KM35. Pre-lease agreements are mostly signed for A class premises. Pre-lease agreements are becoming common in the Kaunas office market. Around one third of the stock to be commenced in 2019 is already preleased. Thus, it is forecast that the vacancy rate is going to remain stable in the near future. Compared to Vilnius, the vacancy rate may seem high, but it is on a par with that in other emerging European cities. DEMAND Despite a relatively high vacancy rate, the take-up for lease agreements continues to show market viability and strong demand for new modern office spaces. As it was expected, 2018 brought a new record with the take-up amounting to nearly 45,000 sqm in total, which is 10,000 sqm more than in The number is significant considering Vilnius take-up of 75,000 sqm. Given the size of the cities and supply of the modern office stock, currently Kaunas office market is growing faster than Vilnius one. In the second half of 2018, Viciunai signed a pre-lease agreement for a 3,500 sqm office in Magnum business centre, while Juvare, Mitnija and Hostinger each signed for approx. 1,000 sqm in River Hall. Newsec forecasts that take up in 2019 could reach approx. 35,000 sqm. Even though it is not probable that take-up will reach the record level of 2018, it should be somewhat similar to that in The Kaunas market remains active as interest from international companies grows. RENTAL RATES By the end of 2018, the average market rent for B class modern office space in Kaunas was in the range of 7-11 EUR/ sqm/month. Meanwhile, the asking rental price for already completed and upcoming A class premises amounted to EUR/sqm/month. Rent rates of modern office stock gradually grow while those of older office premises decrease. Landlords of older buildings tend to reduce rent prices and increase flexibility of lease terms because of fierce competition with new modern office premises. 300, ,000 TOTAL STOCK BY CLASS, sqm Source: Newsec +10% +38% STOCK BY CLASS, end of 2018 EXPECTED STOCK BY CLASS, end of 2020 Source: Newsec 200, , % +25% 6% 20% 100,000 94% 80% 50, E 2020E A Class B Class A CLASS B CLASS A CLASS B CLASS 2

3 «Kaunas remains a tenant market. Newsec forecasts that the situation is going to remain the same in 2019 because of the record supply level which will continue fuelling fierce competition between landlords» OFFICE DEVELOPMENT IN KAUNAS Developer/Owner Location / Name GLA, sqm Class Status Exp. finishing Verslo vystymo centras Konversus B class Completed 2018 Imlitex Holdings Arka A class Completed 2018 VG Valda Kalantos B class Completed 2018 SIRIN River Hall B class Completed 2018 Saulius Vaicaitis Nemuno A class Completed 2018 Mikrovisata Cube B class Completed 2018 Kauno Sauletekis V. Kreves 57B B class Completed 2018 Stanislovas Dumbliauskas K26A B class Completed 2018 KPC Nekilnojamas Turtas Karaliaus Mindaugo verslo centras B class Construction 2019 Polonezas Ausra verslo parkas C B class Construction 2019 Urban Inventors BLC A class Construction 2019 Viciunu grupe Magnum A class Construction 2019 Prime biurai Prime biurai B class Construction 2019 GB projektai Ollo B class Construction 2019 Autodalys S B class Construction 2019 Domino partneriai JU B class Construction 2019 Klaipedos terminalo grupe Alia B class Construction 2019 MJ Consulting Longas B class Construction 2019 Urban Inventors Kauno Dokas II B class Construction 2019 Fugete/Lewben KM A class Construction 2020 YIT Kausta Piliamiescio verslo centras B class Construction 2020 Giedrolos investicijos Partizanu 15B B class Planned 2020 GS investicija Kudirkos B class Planned 2020 TC investicija Nemunas Factory HUB B class Planned 2020 TOTAL CEE OFFICE MARKET SITUATION Bratislava Prague Budapest Sofia Stock per capita (left axis) Katowice Krakow Tallinn Riga Vilnius Source: Newsec Kaunas % Vacancy rate, % (right axis) AVERAGE RENT RATE, EUR/sqm/month Kaunas B class Source: Newsec Vilnius Kaunas Vilnius A class 3

4 OFFICE BUILDINGS IN KAUNAS KLAIPĖDA No Project Name Address, street Openings of Magnum Karaliaus Mindaugo ave BLC2 K. Donelaicio str Kauno Dokas II Jonavos str. 7 4 Karaliaus Mindaugo verslo centras Kaunakiemio str. 1 5 Ausra C Vytauto ave. 23, 27, 29 6 Prime biurai Savanoriu ave Ollo Savanoriu ave S16 Statybininku str JU1 Julijanavos str. 1E 10 Alia Raudondvario hwy Longas Veiveriu str. 153 Openings of 2020 or later 12 KM35 Karaliaus Mindaugo ave Piliamiesčio verslo centras Brastos str Partizanų 15B Partizanu str. 15B 15 Kudirkos 21 V. Kudirkos str Nemunas Factory HUB R. Kalantos str. 32 Existing Office Buildings 17 Zalgirio Arena BC Karaliaus Mindaugo ave Arka Karaliaus Mindaugo ave River Hall Jonavos str Nemuno 3 Nemuno str Konversus Chemijos str Kalantos 49 Kalantos str Cube Savanoriu ave. 321C 24 V. Krėvės 57B V. Kreves ave. 57B 25 K26A new V. Kreves ave. 26A 26 Kauno Dokas Jonavos str Kauno Duona V. Kreves ave Jonavos 30 Jonavos str B66 Barsausko str Renesansas 1 Juozapaviciaus str Birzelio 23 Birzelio 23-osios str Pramones BC Pramones ave. 4A 33 Savanoriu 277 Savanoriu ave Sitis Veiveriu hwy Lapeno Namas Kestucio str Ausra A & B Vytauto str. 23, 27, Maironio 28 Maironio str Plaza BC Taikos ave Swedbank Maironio str. 26B 40 Sollo Savanoriu ave. 363A 41 Inovacijų 3 Inovaciju str Savanoriu 349 Savanoriu ave BLC Donelaicio str Blaster Savanoriu ave BC 32 Vytauto ave Diurablis Partizanu str. 63M 47 Savanoriu 221 Savanoriu ave Technopolis Europos ave BC 1000 Taikos ave. 88A 50 Nordic BC Savanoriu ave Savanoriu 292B Savanoriu ave. 292B 52 Capital Putvinskio str Ausra D,E & K Vytauto ave. 23, 27, K26A old V. Kreves str. 26A 55 Pramones 4D Pramones ave. 4D 56 Senukai BC Islandijos hwy NFQ BC Brastos str BC Mikrovisata Savanoriu ave Ozeskienes 17 Ozeskienes str Maironio 11 Maironio str Pramones 23 Pramones ave Kalantos 34 R. Kalantos str Chemijos 9D Chemijos str. 19A 64 Neries BC Neries krnt Pramones 4E Pramones ave. 4E 66 Daimonda Taikos ave. 131B 67 Partizanu 15 Partizanu str SILAINIAI VILIJAMPOLE OLD TOWN ALEKSOTAS CENTRE ZALIAKALNIS FREDA Under development Office buildings Existing Office buildings Central business district New business district Old business district 34 11

5 41 KAUNAS FEZ EIGULIAI MURAVA 46 VILNIUS DAINAVA GRICIUPIS PETRASIUNAI SANCIAI PANEMUNE 30 5

6 THE FULL SERVICE PROPERTY HOUSE IN NORTHERN EUROPE Newsec The Full Service Property House in Northern Europe is by far the largest specialised commercial property firm in Northern Europe. Newsec manages more properties and carries out more transactions, more lettings and more valuations than any other firm in Northern Europe. Through this great volume, and the knowledge and depth of our various operations, we acquire extensive and detailed knowledge of the real estate market. In turn, we can quickly identify business opportunities that create added value. Our prime market is Northern Europe, but through our alliance membership with BNP Paribas Real Estate, we offer our services on the global market. This makes Newsec Northern Europe s only full service property house, and provides us with a unique ability to forecast the future. expanded internationally into Finland in 2001, Norway in 2005, the Baltic countries in 2009 and Denmark in The Norwegian asset and property management companies First Newsec Asset Management and TM Partner were acquired in In 2013, Newsec acquired Jones Lang LaSalle s Swedish property management operation. In 2017, Newsec grew with the acquisitions of Norwegian Basale and Danish Datea, further strengthening the position within Property Asset Management. Newsec was founded in 1994 and is today a partner-owned company with some 2000 co-workers spread across the seven Nordic and Baltic markets. Newsec has approx. EUR 39 billion under management and annually signs lease agreements of some sqm, manages transactions of some EUR 3 billion and does real estate valuations of underlying property worth almost EUR 180 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe. A history of growth Newsec is the result of a unique history of growth, characterised by constant originality of thinking. The first issue of the comprehensive market analysis, Newsec Property Outlook, was published in The Group TRONDHEIM TAMPERE OULU BERGEN OSLO STOCKHOLM HELSINKI TALLINN GOTHENBURG AARHUS COPENHAGEN MALMÖ RIGA KLAIPEDA KAUNAS VILNIUS 6

7 CONTACT AND ADDRESSES More analytical information at Newsec: Head of Research and Analysis Mindaugas Kulbokas Cell Consultant Gintaras Tolocka Cell Office solutions at Newsec: Head of Brokerage Jurgita Silaikyte Cell Tenant Consulting Head of Corporate Solutions Martynas Babilas Cell Landlord Consulting Advisor Marius Prieskenis Cell Office FIT-OUT Service Head of Project Management Tadas Grincevicius Cell LITHUANIA Konstitucijos ave. 21C LT Vilnius Phone info@newsec.lt LATVIA Vilandes str. 1 LV Riga Phone info@newsec.lv ESTONIA Roseni str. 7 EE Tallinn Phone info@newsec.ee Office Care and Property Management Head of Office Management Group Justas Bandza Cell j.bandza@newsec.lt 7

8 THE FULL SERVICE PROPERTY HOUSE IN NORTHERN EUROPE