Facts about Real Estate Flashcards
(14 cards)
RIGA OFFICE, Q4 2016
Total Modern Stock
595,600 sq m, of which 70% or 415,485 sq m is included into the speculative stock
RIGA OFFICE, Q4 2016
Overall Vacancy Rate
Overall vacancy of modern offices stood at level of 3.9% in Q4 of 2016. Vacancy in the Class A and B1 office segment decreased by 1.4 percentage points during 2016 if compared with the Q4 2015. Considering the speculative modern office stock only, the vacancy rate decreased by 0.6 p.p, reaching the level of 5.7%.
RIGA OFFICE, Q4 2016
Completions
1,560 sq m
RIGA OFFICE, Q4 2016
Absorption
9,850 sq m
RIGA OFFICE, Q4 2016
Prime Yield
7.0%
Rental Decline Accelerating Cities
Vilnius
Tallin
Rental Decline Slowing Cities
Istanbul
Oslo
Moscow
Warsaw
Rental Growth Accelerating Cities
Brussels Geneva Lisbon Milan Prague Rome Zagreb Zurich Amsterdam Barcelona Berlin Budapest Copenhagen Dusseldorf Hamburg Luxembourg Madrid Paris Stockholm
Rental Growth Slowing Cities
Edinburgh Birmingham Frankfurt London City Manchester Munich Dublin London West-End Vienna Riga Bucharest Helsinki Rotterdam
Darzciema Street 91
During the last quarter of 2016 only one office scheme located at Darzciema Street 91 (D91) was finalized and 1,560 sq m was added to the total modern office stock.
Drives of office premises during 2016
During 2016 the market was mainly driven by relocations, with no newcomers entering the market, although interest from international shared service centres and call centres was observed. IT companies, shared services and financial institutions were the most active office occupiers, undertaking relocation and expansion decisions during 2016 and accounting for more than 40% of total take-up.
The total take-up during Q4 2016
The total take-up during Q4 2016 stood at the level of 10,800 sq m, i.e. 15 transactions were recorded. The overall take - up for 2016 slightly exceeded 35,000 sq m, showing increasing activity in the leasing segment.
office buildings under construction
Currently there are several office buildings under construction, measuring around 70,000 sq m in total. During Q4 2016 construction started on the multifunctional complex «Akropolis» with a total area of around 100,000 sq m, including 9,000 sq m of offices. Many large scale new office developments are still in the planning process, undergoing architectural and technical design finishing.
The share of total office occupied posts
The share of total office occupied posts has increased by 5 percentage points since 2007, reaching 25% in 2016, and this trend is likely to be continued, mainly by the expansion of existing companies.
