The warehousing premises sector improves indicators

In Q3 2012, the indicators of the commercial real estate market in the major cities of Lithuania (Vilnius, Kaunas and Klaipėda) continue to show gradual improvement. Recently, positive changes have been particularly noticeable in the warehousing and logistics sectors, where improving performance continues to be recorded. According to the Lithuanian Department of Statistics, in the first half of 2012, revenues in warehousing and activities typical of transport services increased by nearly 34% compared to the same period last year (sales revenue from warehousing and storage business increased by more than 46%). It is no surprise therefore that this year has seen an increase in the rents and occupancy rates for warehousing.

During the first nine months of the year, the vacancy rate of warehousing premises in Vilnius region fell from 6.1% to 2.9%, and the total vacant area available at the end of Q3 2012 was 12,300 sqm. Furthermore it is very difficult today to find larger premises of 3,000–5,000 sqm in one location. The situation in the market is reflected by the completion of the third phase of the Airport Business Park project in the middle of this year; the premises near Vilnius airport are already fully leased (8,000 sqm warehousing premises with offices). At the end of Q3 2012, the vacancy rate of modern warehousing premises was 1.3% in Kaunas and 4.0% in Klaipėda. Rather high occupancy indicators are determined not only by the demand for such premises, but also by the fact that there is little other development. Vilnius is the only city that can boast of more active developers: this year, 3 new projects with almost 16,000 sqm of modern warehouse space were completed. As a result, the area of modern warehousing premises in Vilnius region increased by nearly 4%, with a total area of 427,500 sqm. In Kaunas, Sanitex completed the construction of a 6,700 sqm warehouse for refrigerated products. In spite of the good occupancy figures developers are not encouraged to start new projects because rising construction costs mean that current rents of warehouses do not give a sufficient return on investment.

Click here to read more

Latest news

All news
Ober-Haus Celebrates 25 Years: How Has the Property Market Changed in a Quarter of a Century?

Ober-Haus Celebrates 25 Years: How Has the Property Market Changed in a Quarter of a Century?

In 1998, the Lithuanian real estate market was characterised by a lack of housing, poor credit conditions and an underdeveloped commercial real estate sector. Over the last 25 years, the number of apartments for sale has increased more than 10-fold, housing market activity has almost quadrupled, lending rates have fallen from double to single digits, and modern office buildings and shopping malls are now numbering in the hundreds – that’s the picture according to the Ober-Haus Real Estate Market Review 1998–2023, conducted to celebrate the company’s 25th anniversary. The Year 2000 Marked the Beginning of the Creation of the Lithuanian Real Estate Market The years 1998–2000 can be considered as the period when the real estate sector in Lithuania began to evolve. Due to the absence of credit services, the Lithuanian population was mostly only able to purchase a home using their own funds, and commercial construction with the intention to sell or lease was in its infancy. And so, 25 years ago, investors were developing single apartment blocks, business/office assets and shopping centres, where any new development for sale or rent was regarded as a significant event in the real estate market. The Russian economic crisis, which began in…

Buyers Show No Interest in Overpriced Housing

Buyers Show No Interest in Overpriced Housing

The Ober-Haus Apartment Price Index for Lithuania (OHBI), which captures changes in apartment prices in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), remained unchanged in September 2023 (August 2023 figures had shown 0.4% growth). The overall level of apartment prices in Lithuania’s major cities grew by 2.6% over the last 12 months (an annual growth of 4.9% in August 2023). In September 2023, Klaipėda, Šiauliai and Panevėžys recorded 0.2%, 0.3% and 0.4% growth respectively, and the average price per square metre rose to EUR 1,613 (+3 €/m²), EUR 1,103 (+3 €/m²) and EUR 1,078 (+4 €/m²). Meanwhile, in Vilnius and Kaunas, the average price per square metre decreased by 0.1% month-on-month to 2.568 Eur (-3 €/m²) and 1.724 Eur (-2 €/m²) respectively. Over the year (September 2023 as compared to September 2022), apartment prices grew in all major cities of the country: in Vilnius – by 2.6%, in Kaunas – by 3.2%, in Klaipėda – by 1.6%, in Šiauliai – by 3.7%, and in Panevėžys – by 2.5%. The stagnation period in the Lithuanian housing market continues. Although the market activity indicators do not show any signs of improvement, the majority of home sellers have not…

Office sublease: thousands of invisible square metres

Office sublease: thousands of invisible square metres

In the office segment, the phenomenon of sublease – the transfer of part of a company’s leased premises to a third party – became popular during the pandemic and has remained since. The market of subleased property is usually not included in the official statistics published by real estate agencies. According to OBER-HAUS, current tenants of Class A and Class B+ business centres in Vilnius alone could be offering several thousand or even tens of thousands of square metres of space for sublease. Sublease is usually simply understood as renting space not directly from the owner or manager of a business centre, but from an existing tenant established and operating in the business centre. The principle of sublease itself existed long before the pandemic, but has only become more popular in recent years as businesses switched to remote or hybrid work, consequently, the amount of space required for their operations has decreased. OBER-HAUS estimates that since the beginning of the pandemic, the average office space in Vilnius has decreased by about 30%. In other words, companies entering into new contracts today are renting office space by almost a third smaller than a few years ago. However, office lease contracts are…

All news
Mandatory cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
Functional cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in. Functional cookies are currently unused.
Statistical cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously. Statistical cookies are currently unused.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
Allow all Deny All

Mail sent!

This site is registered on as a development site.