Total stock has grown by 52,300 sq m since 2018 and reached over 704,000 sq m at the end of 2019.
Seven office buildings were added to the stock in 2019. All are class B1 offices. The biggest deliveries are Business Garden Rīga (1st stage), Akropole and Jaunā Teika (3rd stage, Henrihs).
None of the class A offices were completed in 2019, but this is expected in 2020. Z-Towers was commissioned in January 2020.
Prime office yields stayed at a historic low at 6.25% over the year.
Up to 50% of lease deals are sized from 300 sq m to 1,000 sq m, and one third of lease transactions are for premises up to 200 sq m.
The vacancy rate increased significantly in 2019. By the end of 2019, it stood at ca.9%, or more than double the y/y.
Rent rates remain stable: 14.0–17.0 EUR/sq m/month for class A, 8.0–14.5 EUR/sq m/month for class B.
GDP growth slowed down to 2.3% (Q1-Q3 2019) y/y, yet the forecasts remain firmly positive.
Wages grew by 7.6% on average (Q1-Q3 2019) y/y.
HICP declined slightly to 2.3% (Q4,2019) y/y.