Latio: Lease price of office premises gradually grows
December 14, 2011
According to the Latio commercial property market overview for the third quarter specific weight of free premises at the office space market keeps decreasing, therefore the rent level for the offices at the most demanded places gradually grows.
Availability of premises may differ in various categories of office premises. There are 15 to 20% of free prime or the highest category office premises, 15% in the A class category, approx. 30% in the B class category. It was B class segment, the largest segment in Riga, where availability of free premises decreased over the recent months.
As availability of free space decreases rent level is gradually growing at the most demanded places and office premises. As for the prime office premises segment the average monthly rent was EUR 16 per sq.m in the third quarter. The transactions with A class office premises were within the limit of EUR 9 to 16 per sq.m. Comparing to the previous periods the lower limit of the rent amplitude has increased. The growth of the highly fillable best A class office premises rent was 10 to 14% over the last two years. The B class premises monthly rent was within the limit of EUR 7 to 12 per sq.m, and that of C class premises was within EUR 4 to 6 per sq.m for the transactions made in the third quarter.
The level of lessees’ activity and the demand at the business property market in Riga stayed at the six-month level. The highest demand was for B class premises in the center of Riga and high quality new office premises.
“The rent level for the offices at the most demanded and fillable premises will gradually grow in the nearest future. The specific weight of available premises will decrease;however, new office premises are not yet constructed. The rotation of lessees will also stay in force for the owners of the most demanded premises will try to attract the best lessees,” explains Jānis Šīns, Head of Latio Commercial Property Sales Department.
Phone: +371 67032300