VILNIUS OFFICE OUTLOOK 2018 Q4

VILNIUS OFFICE OUTLOOK 2018 Q4 Uptown Park, Švitrigailos str. 13, Vilnius (2019-2020)

MODERN OFFICE PREMISES SUPPLY By the end of 2018 the stock of modern office premises in Vilnius totalled 635,200 sqm which equals to 1.16 sqm per capita. Four A class office buildings with a total gross leasable area of 39,700 sqm were delivered in 2018. The buildings were: Asgaard Keys, Business Stadium West, Link and Sail no. 3. The year marked an expansion of CBD as all new business centres were located in the heart of the city. A class premises located in CBD will continue dominating the pipeline in 2019 making up 70% of the new stock delivery. In 2020 the proportion of new A and B class premises will even out. Intense competition in the A class segment and continuously-decreasing B class vacancy rate prompted the development of B class premises. In total, it is forecast that during 2019-2020 the Vilnius office market will increase by approx. 218,000 sqm of modern office space. Currently, 12 out of 16 projects planned for 2019-2020 are under construction. VACANCY In Q4 2018, the average vacancy rate in Vilnius increased from 3.1% to 3.7%. The rate remains extremely low in the context of the European office market as the average vacancy rate in Western Europe is 7.0-8.0%. However, considering that significant part of new developments are speculative, low vacancy rates do not limit choice for tenants that are planning office demand properly in advance. The vacancy rate for A class office premises has increased from 2.7% to 5.0%. The rate is not expected to further increase as most of the premises opening in 2019 are almost fully pre-leased. The vacancy rate for B class office buildings has decreased from 3.4% to 2.8%. It has been shrinking gradually and this quarter reached the lowest level in 2017-2018. Such a low vacancy rate in this segment prompted the development of new B class premises in the city and its outskirts. The average vacancy rate is expected to increase but only by a small margin as most of the premises opening in the coming years are almost fully pre-leased. DEMAND Even though the average yearly takeup in the last five years amounted to 60,000 sqm, both in 2017 and 2018 it was significantly higher than that. In 2017 it reached 80,000 sqm marking an all-time record in the Vilnius office market. In 2018 take-up amounted to almost 75,000 sqm. It is forecast that take-up in upcoming years will remain at the same level reaching at least 70,000 sqm per year. The largest transactions in 2018 were made by SEB, Maxima Group, Yara, Ernst & Young Baltic, Teleperformance and many smaller entities. In 2018, Newsec advised on nearly 70% of all transactions. RENTAL RATES In 2018, the average rent for B class premises slightly increased, whereas that for A class premises remained the same. In 2017-2018 the average market rent for prime office space in Vilnius CBD amounted to 14.0-16.0 EUR/sqm/month, reaching 17.0 in special cases. In other central areas, rents were in the range of 12.0-13.0 EUR/sqm/month, whereas those for B class offices located further from the city centre averaged 9.0-11.0. The highest B class rents were captured in business campuses and other professionally-managed buildings. Rental rates gradually increase as new projects offer higher quality standards. OFFICE STOCK DEVELOPMENT: thousand sqm PROJECT UNDER DEVELOPMENT, thousand sqm 900 800 700 600 500 +13% +7% +19% +14% +17% 250 200 150 44 24% 107 49% 400 300 100 200 100 50 139 76% 111 51% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 0 Q4 2017 Q4 2018 Existing stock Additional stock A class B class 2

«The office market keeps rapidly expanding with demand continuously meeting supply» VACANCY RATE, % RENT, EUR/sqm/month 25% 20% 15% 10% 5% 5.0% 14.0-17.0 9.0-13.0 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 2018 Q2 2018 Q3 2018 Q4 Vacancy rate A class Vacancy rate B class 2.8% A CLASS B CLASS OFFICE DEVELOPMENT IN VILNIUS IN 2019-2020 Developer / Owner Location / Name GLA, sqm Description Status Exp. finishing YIT Duetto, stage II 8 300 B class, Virsuliskes Construction 2019 Darnu Group Park Town East Hill 14 800 A class, CBD Construction 2019 EIKA Live Square 6 800 A class, Central area Construction 2019 M.M.M. Projektai Saltoniskiu 7, stage II 15 000 A class, CBD Construction 2019 PST U219 16 000 B class, Ukmerges st. Construction 2019 Urban Inventors Green Hall 3 2 500 A class, CBD Construction 2019 M.M.M. Projektai Saltoniskiu 7, stage III 15 000 A class, CBD Construction 2019 Schage Quadrum South 13 000 A class, CBD Construction 2019 Darnu Group Paupys 20 000 B class, Uzupis Construction 2020 Lords LB SEB HQ 12 700 A class, CBD Construction 2020 M.M.M. Projektai Savanoriu av. 5 9 700 B class, Savanoriu av. Construction 2020 Vilbra Uptown Park 12 500 B class, Naujamiestis Construction 2020 Technopolis Nova 26 740 B class, Ozas Park Planned 2020 Hanner Business Stadium North 15 000 A class, CBD Planned 2020 Lords LB Lvovo 37 15 600 A class, CBD Planned 2020 YIT Linkmenu 17A 14 000 B class, Snipiskes Planned 2020 TOTAL 217 640 3

OFFICE BUILDINGS IN VILNIUS No Project Name Address, street Openings of 2019 1 Duetto, stage II Virsuliskiu ln. 26 2 Park Town East Hill Lvovo str. 105A 3 Live Square Gedimino ave. 44A 4 Saltoniskiu 7, stage II Saltoniskiu str. 7 5 U219 Ukmerges str. 219 6 Green Hall 3 Upes str. 21 7 Saltoniskiu 7, stage III Saltoniskiu str. 7 8 Quadrum South Konstitucijos ave. 21B Openings of 2020 9 Paupys Paupio str. 10 SEB HQ Konstitucijos ave. 24 11 Savanoriu av. 5 Savanoriu av. 5 12 Uptown Park Svitrigailos str. 13 13 Nova V. Gerulaičio str. 18 14 Business Stadium North Rinktines str. 5 15 Lvovo 37 Lvovo str. 37 16 Linkmenu 17A Linkmenu str. 17A Openings of 2021 and later 17 K18b Konstitucijos ave. 18B 18 Business Garden, stage I Laisves ave. 10 19 Saltoniskiu 7, stage IV Saltoniskiu str. 7 20 Business Stadium, stage III Rinktines str. 5 Existing office buildings 21 Quadrum Business City Konstitucijos ave. 21, 21C 22 Asgaard Keys Ukmerges str. 124 23 Link Saltoniskiu str. 9B 24 3 Bures III Giedraiciu str. 3 25 Business Stadium West Rinktines str. 5 26 Park Town West Hill Lvovo str. 105 27 Green Hall 2 Upes str. 21 28 S7 I Saltoniskiu str. 7 29 Penta Ozo str. 12A 30 Narbuto 5 Narbuto str. 5 31 Domus Pro Bieliunu str. 1 32 Duetto I Spaudos str. 8 33 Eleven Kareiviu str. 11 34 B Nordic 26 J. Basanaviciaus str. 26 35 City Zalgirio str. 90 36 135 Zalgirio str. 135 37 Delta J. Balcikonio str. 9 38 Highway Savanoriu str. 178 39 Uniq A. Gostauto str. 12a 40 k29 Konstitucijos ave. 29 41 Premium Sporto str. 18 42 IBC (International Business Centre) Seimyniskiu str. 3A, 3, 1A / A. Juozapaviciaus str. 6/2 43 3 Bures Lvovo str. 25 44 Europa Konstitucijos ave. 7 45 Swedbank Headquarters Konstitucijos ave. 20A 46 GV18A Gelezinio Vilko str. 18A 47 Danske Bank Saltoniskiu str. 2 48 Saltoniskiu 10C Saltoniskiu str. 10C 49 Baltic Hearts Ukmerges str. 120 50 Green Hall Upes str. 21 51 Marenta Business Centre Kestucio str. 65 52 Vertas Gyneju str. 16 53 Merchants' Club Gedimino ave. 35 54 Plaza 31/1 Vilniaus str. 31 / Islandijos str. 1 55 Business Centre 2000 Jogailos str. 4 56 Basanaviciaus 15 J. Basanaviciaus str. 15 57 BC 12 J. Jasinskio str. 12 58 MG Baltic J. Jasinskio str. 16, 16A, 16B, 16C 59 Eika Business Centre A. Gostauto str. 40a, 40b 60 G40 A. Gostauto str. 40 61 Vilbra Business Centre Svitrigailos str. 11B, 11H, 11M 62 Vytenio 46 Vytenio str. 46 63 Skraidenis Naugarduko str. 100, 102 64 LJB Savanoriu ave. 28 65 Evita Savanoriu ave. 18 66 L3 Laisves ave. 3 67 JIN&JAN Menulio str. 7, 11 68 Trapecija Pilaites ave. 16 69 Atea J. Rutkausko str. 6 70 Grand Office Virsuliskiu ln. 34 71 Orange Office GRIGISKES Senasis Ukmerges Rd. 4 72 Trio Perkunkiemo str. 3, 5, 7 73 Business Park Four Perkunkiemo str. 2, 4, 6 74 One Ukmerges str. 322 75 Kamane Ukmerges str. 369A 76 Sostena Ukmerges str. 280 77 Evolution Ukmerges str. 223 78 Akropolio Business Centre Ozo str. 25 79 BH-92 Zalgirio str. 92 80 Zalgirio Business Centre Zalgirio str. 88 81 North Star Ulonu str. 2 82 Ulonu Business Centre Verkiu str. 25C / J. Galvydzio str. 1 83 Domus Centre P. Luksio str. 32 84 Ozo Business Centre Ozo str. 10A 85 Alfa V. Gerulaicio str. 1 86 Beta J. Balcikonio str. 3 87 Gama Kalvariju str. 204 88 NCBC Kareiviu str. 6 89 Eta Zirmunu str. 107 90 Zirmunu Business Centre Zirmunu str. 139 91 Sunrise Valley Sauletekio ave. 15 92 VITP Mokslininku str. 2A GARIUNAI TARANDE PILAITE LAZDYNELIAI Under development Office buildings Existing Office buildings CBD Business triangle 66 JUSTI 70 32 1 69 68 67 KAROLINISK LAZDYNAI 4 ZEMIEJI PANERIAI

5 ANTAKALNIS ZIRMUNAI SNIPISKES NAUJAMIESTIS SENAMIESTIS UZUPIS ZVERYNAS ES VIRSULISKES SESKINĖ FABIJONISKES JERUZALE BALTUPIAI TURNISKES PAVILNYS MARKUCIAI RASOS VILKPEDE NAUJININKAI PASILAICIAI SANTARISKES NISKES 42 43 44 39 40 41 46 48 47 45 21 24 25 50 51 52 53 54 55 56 57 58 59 60 61 64 65 66 73 72 74 75 92 76 77 78 81 83 84 85 86 87 88 89 91 90 82 63 80 34 27 30 38 26 2 3 11 12 29 33 31 28 36 35 4 19 7 5 13 6 8 14 20 16 18 15 17 10 9 79 37 49 62 22 23

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. 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. 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 2001. The Group expanded internationally into Finland TRONDHEIM TAMPERE OULU BERGEN OSLO STOCKHOLM HELSINKI TALLINN GOTHENBURG AARHUS COPENHAGEN MALMÖ RIGA KLAIPEDA KAUNAS VILNIUS 6

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 Head of Office Solutions 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