Office vacancies top 25 percent in the Baltics with rents continuing to fall on double digit economic contraction, says Ober-Haus in their latest market report.

Riga, Latvia 

The Latvian economy contracted by a devastating -18 percent in 2009, while unemployment rose to 17 percent. The consensus estimate is for continued GDP contraction of -4 percent in 2010 while unemployment will reach 21 percent. 

The A Class office vacancy rate in Q4 was 27 percent, which was 2 percent more than in Q3. Rents for A Class offices in Riga have fallen to €9 to €12 per sqm in Q4 2009. 

Tallinn, Estonia 

Estonia appears to be the best off in the Baltic States, with GDP falling 14 percent in 2009 but most analysts expecting positive growth in 2010 of 1 percent followed by 4 percent in 2011. 

Office rents fell 8 percent comparing with Q3 2009. Today A Class city centre space rents for €7.60 to €10.80 per sqm, while good suburban business park space rents for €4.40 to €7.60 per sqm. Vacancy rates in non-central areas have broken above 25 percent.  

Vilnius, Lithuania 
Lithuanian GDP fell 16 percent in 2009, and is forecast to fall another 2 percent in 2010. Rents for A and B Class office premises fell in Q4 by 5 percent in Vilnius and 10 percent in Kaunas and Klaipeda. In 2009, rents of office premises dropped 40 percent in Vilnius and nearly 50 percent in Kaunas and Klaipeda. Today A Class offices in Vilnius are being offered for €9.30 to €12.20 per sqm, and B Class for €5.80 to €8.10 per sqm. Office rental prices in Kaunas and Klaipeda were far lower. 

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