Download the newest office overview for free HERE!
- Considering the construction of new office buildings, new office tenants currently have not had ample opportunities to choose and agree on favorable contract terms. The market is witnessing sharp competition among office developers for the largest office tenants.
- Despite the high level of inflation, due to competition, rent increases have not been observed and the rent level is stable. In some cases, older office buildings with motivated landlords have reduced rents or offer discounts to new tenants.
- Office workers continued to return to work in office premises, as the effects of the Covid-19 pandemic subsided. The total share of vacant premises in class A and B office buildings (excluding new constructions) decreased during the year.
- The investment climate in Latvia was affected by the war in Ukraine, global uncertainty and the reorganization of business chains. In 2022, no new large office deals with new companies from abroad were announced. The announced transactions in new office buildings indicate a tendency to move from older A/B+ class office buildings to new office buildings, which currently provide the highest quality of premises.
- Most of the concluded large office deals were so-called pre-lease or transactions of the yet-to-be-built buildings, confirming the high interest of tenants in these projects, a strong demand that has come after years with a comparatively low supply of new office space.
- The interest in changing offices was reinforced by the high prices of energy resources and the associated high utility bills in the autumn and winter period.
- When planning a new office, companies expect a relatively lower number of jobs compared to the total number of employees, taking into account that working from home is the new status quo for some employees. Sometimes this allows you to reduce the area of the new office by choosing higher class and rentable premises. The planning has to predict the number of jobs for the next 5 years, which is the standard length of contracts for all new office buildings.
