Baltic Office Outlook, 2026 Q1

The Baltic States Office Outlook for Q1 2026, published by Newsec, provides a quarterly analysis of the office markets in the three Baltic capitals: Vilnius (Lithuania), Riga (Latvia), and Tallinn (Estonia). The report tracks supply, demand, vacancy, rental rates, and yields, with separate commentary on A class and B class office segments.

Vilnius office market. Total stock reached approximately 1,271,900 sqm in Q1 2026, with around 29,700 sqm of new supply delivered during the quarter and 70,600 sqm under construction. Overall vacancy eased marginally to 9.7%, although A class vacancy rose to 11.5% as recently completed schemes continue to lease up, while B class vacancy declined to 8.0%. Take-up reached approximately 26,300 sqm, driven mainly by relocations, consolidations, and upgrades. Prime rents range from 19.0 to 22.0 EUR/sqm/month, with prime yields at 6.75–7.25%.

Riga office market. Stock totalled 925,500 sqm, with 80,000 sqm under construction and significant deliveries expected over the next two years, including Preses Nams. Q1 2026 absorption reached 3,700 sqm, with the largest transaction being Latvijas Universitāte's 1,200 sqm lease at Mukusalas BC. Vacancy stood at 9.5% in A class and 10.7% in B class buildings. A growing trend of historical CBD office buildings being converted back into residential use was noted. Prime rents range from 16.0 to 21.0 EUR/sqm/month, with prime yields at 7.25–7.75%.

Tallinn office market. Stock stood at 1,113,650 sqm, with no new deliveries in Q1 2026 but 167,000 sqm under construction. A class vacancy was 7.3%, while B class vacancy rose slightly above 10%. Marati Maja (16,000 sqm) is scheduled for Q2 2026 completion. Metro Capital became the first developer to announce an office-to-residential conversion. A class rents range from 17.3 to 24.0 EUR/sqm/month, with prime yields at 6.75–7.00%.

Key cross-market themes: moderating supply pipelines, selective tenant demand focused on quality and total occupancy cost, and a widening performance gap between A and B class assets across all three Baltic capitals.