INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 Office campus S7, Vilnius, Lithuania.
MODERN OFFICE PREMISES INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 MODERN OFFICE PREMISES SUPPLY By the end of Q1 2018, the stock of modern office premises in Vilnius was 604,400 sqm, or 1.1 sqm per capita. There was one new office project completed during Q1 2018 and the total office stock increased by almost 9,000 sqm of leasable area, or 1.5% in comparison to Q4 2017. It is expected that during 2018-2019, approx. 148,050 sqm of new office space will be commissioned in Vilnius. Ten out of twelve planned projects are currently under construction. Developers focus still remains on prime schemes more than 70% of constructed stock is class A offices. VACANCY The first tenants started to move into the new office building LINK in Q1 2018. The project was 100% pre-leased before launching. The current tenants of the building are Teltonika, Cognizant, BNS, Diginet, 15min and ilunch. The latest openings of new projects did not increase Vilnius office market vacancy rates as all of them were almost fully pre-leased, which indicates strong demand for modern office stock. The average vacancy at class A properties fell to 1.6% and at class B properties to 3.9%. So in Q1 2018, the average vacancy rate of classified office buildings in Vilnius decreased to 3.0%, which remains one of the lowest in Europe, but this is expected to start growing slightly again in the near future due to scheduled openings of new vacant projects. DEMAND In 2017, the total take-up of modern offices amounted to more than 80,000 sqm. Such a high yearly amount marked an all-time record in the Vilnius office market. Nearly 70% of these transactions were advised by Newsec. The year 2018 started with one more large transaction in the Vilnius office market by the banking group SEB signing for 10,000 sqm in a new office building on Konstitucijos Avenue planned by Lords LB, which will be delivered in 2020. Newsec acted for SEB in this transaction. Advance lease deals are typical in the Vilnius office market, with leases often being signed six to 18 months prior to handing over the space. RENTAL RATES In Q1 2018, the average market rent for prime office space in Vilnius CBD ranged from 14 to 16 EUR/sqm/month, reaching 17 EUR/sqm/month in some cases. In other central areas rents were in the range of 11-14 EUR/sqm/month, whereas rents in class B offices further from the city centre averaged 8-11 EUR/ sqm/ month. The highest class B rents were captured in campuses and professionally managed buildings. Rental rates are increasing slightly as new projects offer higher quality standards. OFFICE STOCK DEVELOPMENT: DYNAMICS OFFICE CONSTRUCTION IN 2018-2019, sqm Sqm 800 000 600 000 400 000 200 000 71% 29% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E Existing stock Additional stock A CLASS B CLASS 2
INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 MODERN OFFICE PREMISES «Vacancy is expected to start growing slightly again in the near future due to scheduled openings of new vacant projects» VACANCY RATE, % RENT, EUR/sqm/month 25% 20% 15% 10% 5% 0% 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 16 14 12 10 8 6 4 2 0 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 Vacancy rate A class Vacancy rate B class Rent A class Rent B class OFFICE DEVELOPMENT IN VILNIUS IN 2018 2019 Developer / Owner Location / Name GLA, sq m Description Status Exp. Finishing Baltijos Gildija LINK 8 950 A class, CBD Completed 2018 Asgaard Property Asgaard keys 4 100 A class, CBD Construction 2018 Eastnine Sail no. 3 11 000 A class, CBD Construction 2018 Hanner Business Stadium, stage I 15 600 A class, CBD Construction 2018 YIT Duetto, stage II 8 300 B class, Virsuliskes Construction 2018 M.M.M. Projektai Saltoniskiu 7, stage II 15 000 A class, CBD Construction 2019 M.M.M. Projektai Saltoniskiu 7, stage III 15 000 A class, CBD Construction 2019 MG Valda Park Town, stage II 14 800 A class, CBD Construction 2019 EIKA Live Square 6 800 A class, Central area Construction 2019 PST U219 16 000 B Class, Ukmerge st. Construction 2019 MG Valda Paupys 20 000 B+ Class, Uzupis Construction 2019 Urban Inventors Green Hall, stage III 2 500 A class, CBD Planned 2019 Schage Quadrum, stage III 10 000 A class, CBD Planned 2019 TOTAL 148 050 3
MODERN OFFICE PREMISES INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 4 OFFICE BUILDINGS IN VILNIUS No Project Name Address, street Openings of 2018 1 Link Saltoniskiu str. 9b 2 Duetto II Virsuliskiu ln. 26 3 3 Bures III Giedraiciu str. 3 4 Asgaard Keys Ukmerges str. 124 5 Business Stadium I Rinktines str. 5 Openings of 2019 6 Quadrum Business City II Konstitucijos ave. 21b 7 Green Hall III Upes str. 21 8 Park Town II Lvovo str. 105A 9 S7 II Saltoniskiu str. 7 10 Live Square Dainavos str. 3 11 S7 III Saltoniskiu str. 7 12 Paupys Paupio str. 13 U219 Ukmerges str. 219 Openings of 2020 and later 14 k18b Konstitucijos ave. 18b 15 SEB HQ Konstitucijos ave. 24 16 St. Jacob Vasario 16-osios str. 10 17 Business Stadium II Rinktines str. 5 Spruce pine spruce 18 Business Garden I Laisves ave. 10 19 Nova V. Gerulaicio str. 18 Existing Office buildings 20 Quadrum Business City I Konstitucijos ave. 21, 21c 21 Park Town I Lvovo str. 105 22 Green Hall 2 Upes str. 21 23 S7 I Saltoniskiu str. 7 24 Penta Ozo str. 12a 25 Narbuto 5 Narbuto str. 5 26 Domus Pro Bieliunu str. 1 27 Duetto I Spaudos str. 8 28 Eleven Kareiviu str. 11 29 B Nordic 26 J. Basanaviciaus str. 26 30 City Zalgirio str. 90 31 135 Zalgirio str. 135 32 Delta J. Balcikonio str. 9 33 Highway Savanoriu str. 178 34 Uniq A. Gostauto str. 12a 35 k29 Konstitucijos ave. 29 36 Premium Sporto str. 18 37 IBC (International Business Centre) Seimyniskiu str. 3a, 3, 1a / A. Juozapaviciaus str. 6/2 38 3 Bures Lvovo str. 25 39 Europa Konstitucijos ave. 7 40 Swedbank Headquarters Konstitucijos ave. 20a 41 GV18A Gelezinio Vilko str. 18a 42 Danske Bank Saltoniskiu str. 2 43 Saltoniskiu 10C Saltoniskiu str. 10c 44 Baltic Hearts Ukmerges str. 120 45 Green Hall Upes str. 21 46 Marenta Business Centre Kestucio str. 65 47 Vertas Gyneju str. 16 48 Merchants' Club Gedimino ave. 35 49 Plaza 31/1 Vilniaus str. 31 / Islandijos str. 1 50 Business Centre 2000 Jogailos str. 4 51 Basanaviciaus 15 J. Basanaviciaus str. 15 52 BC 12 J. Jasinskio str. 12 53 MG Baltic J. Jasinskio str. 16, 16a, 16b, 16c 54 Eika Business Centre A. Gostauto str. 40a, 40b 55 G40 A. Gostauto str. 40 56 Vilbra Business Centre Svitrigailos str. 11b, 11h, 11m 57 Vytenio 46 Vytenio str. 46 58 Skraidenis Naugarduko str. 100, 102 59 LJB Savanoriu ave. 28 60 Evita Savanoriu ave. 18 61 L3 Laisves ave. 3 62 JIN&JAN Menulio str. 7, 11 63 Trapecija Pilaites ave. 16 64 Atea J. Rutkausko str. 6 65 Grand Office Virsuliskiu ln. 34 66 Orange Office Senasis Ukmerges Rd. 4 67 GRIGISKES Trio Perkunkiemo str. 3, 5, 7 68 Business Park Four Perkunkiemo str. 2, 4, 6 69 One Ukmerges str. 322 70 Kamane Ukmerges str. 369a 71 Sostena Ukmerges str. 280 72 Evolution Ukmerges str. 223 73 Akropolio Business Centre Ozo str. 25 74 BH-92 Zalgirio str. 92 75 Zalgirio Business Centre Zalgirio str. 88 76 North Star Ulonu str. 2 77 Ulonu Business Centre Verkiu str. 25c / J. Galvydzio str. 1 78 Domus Centre P. Luksio str. 32 79 Ozo Business Centre Ozo str. 10a 80 Alfa V. Gerulaicio str. 1 81 Beta J. Balcikonio str. 3 82 Gama Kalvariju str. 204 83 NCBC Kareiviu str. 6 84 Eta Zirmunu str. 107 85 Zirmunu Business Centre Zirmunu str. 139 86 Sunrise Valley Sauletekio ave. 15 87 VITP Mokslininku str. 2a GARIUNAI TARANDE PILAITE LAZDYNELIAI Under development Office buildings Existing Office buildings CBD Business triangle KAROLINISK LAZDYNAI ZEMIEJI PANERIAI 66 65 27 2 64 63 JUSTI 62
INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 MODERN OFFICE PREMISES 87 SANTARISKES 69 67 68 26 70 JERUZALE TURNISKES PASILAICIAI 71 NISKES FABIJONISKES 13 72 SESKINĖ 73 BALTUPIAI 82 32 81 80 19 24 79 77 85 78 83 28 84 86 ES VIRSULISKES 29 SNIPISKES 31 74 4 3075 44 23 9 21 8 11 1 43 42 41 35 46 25 15 6 20 3 22 45 7 38 39 40 ZVERYNAS 34 14 37 47 16 48 53 52 10 54 50 55 49 51 76 ZIRMUNAI 36 5 17 UZUPIS ANTAKALNIS 18 61 60 59 NAUJAMIESTIS 56 SENAMIESTIS 12 57 RASOS MARKUCIAI VILKPEDE 58 PAVILNYS NAUJININKAI 33 5
MODERN OFFICE PREMISES INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 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. was published in 2001. The Group expanded internationally into Finland in 2001, Norway in 2005, the Baltic countries in 2009 and Denmark in 2016. The Norwegian asset and property management companies First Newsec Asset Management and TM Partner were acquired in 2012. 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 760 000 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, TRONDHEIM TAMPERE OULU BERGEN OSLO STOCKHOLM HELSINKI TALLINN GOTHENBURG AARHUS COPENHAGEN MALMÖ KLAIPEDA RIGA VILNIUS KAUNAS 6
INSIDE OFFICE MARKET VILNIUS, LITHUANIA 2018 Q1 MODERN OFFICE PREMISES CONTACT AND ADDRESSES More analytical information at Newsec: Head of Research and Analysis Mindaugas Kulbokas Cell +370 652 10556 E-mail m.kulbokas@newsec.lt Consultant Gintaras Tolocka Cell +370 685 06940 E-mail g.tolocka@newsec.lt Office solutions at Newsec: Head of Brokerage Jurgita Silaikyte Cell +370 659 66808 E-mail j.silaikyte@newsec.lt Tenant Consulting Head of Corporate Solutions Martynas Babilas Cell +370 616 12216 E-mail m.babilas@newsec.lt Landlord Consulting Advisor Indre Narauskaite Cell +370 698 83827 E-mail i.narauskaite@newsec.lt Office FIT-OUT Service Head of Project Management Tadas Grincevicius Cell +370 679 79779 E-mail t.grincevicius@newsec.lt LITHUANIA Konstitucijos ave. 21C LT-08130 Vilnius Phone +370 5 252 6444 E-mail info@newsec.lt www.newsec.lt LATVIA Vilandes str. 1 LV -1010 Riga Phone +371 6750 84 00 E-mail info@newsec.lv www.newsecbaltics.com ESTONIA Roseni str. 7 EE-10111 Tallinn Phone +372 664 5090 E-mail info@newsec.ee www.newsecbaltics.com Office Care and Property Management Head of Office Management Group Justas Bandza Cell +370 6555 8989 E-mail j.bandza@newsec.lt 7
THE FULL SERVICE PROPERTY HOUSE IN NORTHERN EUROPE