Report on the Baltic real estate market for the 4th quarter of 2022
In Q4 2022, investment volume in Latvia reached EUR 95 million, largely driven by Baltic investors and smaller (< 5 mln EUR) transactions. The largest deal of the year: the acquisition of Place Eleven (Class A officebuilding in Skanste) for EUR 53 million by East Capital.
The office market in Q4 2022 has been relatively quiet. With new developments moving closer to commissioning, competition for anchor tenants remains strong. Rising additional costs in older buildings, remote work and decreasing office space per employee ratio allow tenants to relocate to smaller but better-located and higher-quality premises
within the same budget.
Retail market. In Q4 2022, inflation stood at the centre of attention. Indications show that landlords will apply a full indexation
approach. However, similarly as was the case with rent discounts
during the pandemic, they are ready to discuss other options for
some tenants individually.
Industrial market: Green Park III (1st building) developed by Piche was
put into operation in the Airport area, adding 7,064 sqm of industrial space in Q4 2022. Additionally, Q4 saw completion of the year’s third stock office project - Kengaraga Centrs with GLA 4,423 sqm.
Baltic_Quarterly_Report_4Q_22.pdf