► Three pipeline projects (Verde by Capitalica, Novira Plaza by Novira Capital and Preses Nama Kvartāls by Lords LB) are under construction in Q1 and will add around 70,000 sqm of new office space to the market by the summer of 2023.
► Office take-up was 11,000 sqm in Q1, with more than third of the total take up absorbed within projects commissioned in the past two years.
► Headline rents for A and B1 class offices remained stable in Q1, with several B2 class office projects offering slightly lower rents. Extra incentives are expected from landlords to attract tenants.
► The vacancy rate decreased for the second straight quarter, settling at 11.9 %. We expect this trend to continue as no significant pipeline projects are expected for delivery in 2021.
► Z Towers - a premium class project that entered the market in Q1 2020 has set a new benchmark rent rate for premium class office space exceeding the current highest rate of 17 EUR per sqm in Riga.
► Three significant office lease transactions (exceeding 1,000 sqm) were finalised in Q1 2021, showing the supremacy of the IT and Finance sector in market tenancy.
Riga Office Market Snapshot Q1 2021
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