KAUNAS OFFICE OUTLOOK - Newsec · 5 Miesto renesansas Renesansas I 3 500 B A. Juozapaviciaus av....
8
KAUNAS OFFICE OUTLOOK 2018 KAUNAS OFFICE OUTLOOK 2018
Transcript of KAUNAS OFFICE OUTLOOK - Newsec · 5 Miesto renesansas Renesansas I 3 500 B A. Juozapaviciaus av....
KAUNAS OFFICE OUTLOOK2018
KAUNAS OFFICE OUTLOOK2018
KAUNAS OFFICE OUTLOOK 2018MODERN OFFICE PREMISES
2
MODERN OFFICEPREMISES SUPPLYBy the end of 2017, the stock of modern office premises in Kaunas was 143,300 sqm, or 0.49 sqm per capita. In recent years the face of the city has been changing as the office market in Kaunas grows rapidly. In 2017 alone, the stock grew by 44% as 11 office centres (44,000 sqm) launched, while 17 openings (99,000 sqm) are planned for 2018-2019.
Currently, all office stock in Kaunas is B class, but the city’s office market is changing rapidly in this regard as well. Four major office centres launching in 2018-2019 will be A class premises with a total gross leasable area of 44,300 sqm.
Recent office building development is occurring in concentrated areas forming two main clusters around the city centre. In 2017, a New Business District started forming on Jonava Street with comfortable B+ class offices being its main offering. The CBD area will grow further as ARKA, MAGNUM, NEMUNO 3 and BLC2 are all due to launch there in 2018-2019.
VACANCYBy the end of 2017, the vacancy rate in Kaunas was 11%. Such a percentage of vacant space is significantly higher than in Vilnius (average of 3.4%) but is completely normal compared to cities
in other European countries. Vacancy increases in old office buildings as they become abandoned by tenants that move to newly built office centres, which also launch partly vacant.
Eleven office buildings were opened in Kaunas in 2017, all of them B class premises. The biggest openings in terms of area offered were SITIS with occupancy of 95% by the end of 2017, B66 with occupancy of 90% and KAUNO DOKAS with occupancy of 70%.
Average vacancy rates are now expected to increase slightly, as in 2018 12 more new office centres will launch and even more tenants will leave older premises. However, A class premises opening in 2018-2019 are expected to be almost fully pre-leased.
DEMANDIn 2017, the total take-up of modern offices amounted to nearly 35,000 sqm. Such a high yearly amount marked an all-time record in the Kaunas office market.
Almost all transactions in 2017 were either relocations or expansions of companies already existing in Kaunas. Several major companies signed contracts for premises in new office centres: FESTO signed for 5,600 sqm at KREVES 129, SWEDBANK signed for
2,600 sqm at ARKA and SEB signed for nearly 2,000 sqm at NEMUNO 3.
There were a couple of new companies starting operations in Kaunas: Confidential IT company signed up almost 500 sqm at KAUNO DOKAS, while TGW signed for 400 sqm at RIVER HALL. More newcomers are expected in the near future.
With companies wishing to secure the best office space, pre-leases are becoming more and more common in Kaunas. Leases are typically signed 6 to 12 months prior to handing over the premises.
RENT RATESBy the end of 2017, the average market rent for B class modern office space in Kaunas was in the range of 8-11 EUR/sqm/month, reaching 11.5 EUR/sqm/month in some cases. Meanwhile, the asking rental price for A class premises opening in 2018-2019 currently amounts to 12-14 EUR/sqm/month.
Rental rates in old office buildings are expected to fall slightly as competition is expected to intensify in the next few years. Changes in the market are expected as landlords become susceptible to negotiations and older premises will have to be renovated in order to remain competitive.
City Total Stock Population Stock per Capita
Budapest 3,300,000 1,759,400 1.88
Tallinn 710,000 420,000 1.69
Katowice 473,000 299,900 1.58
Krakow 1,073,100 762,500 1.41
Sofia 1,663,000 1,260,100 1.32
Vilnius 595,500 546,300 1.09
Riga 640,000 641,500 1.00
Kaunas 143.300 290,100 0.49
300,000
250,000
200,000
150,000
100,000
50,000
-
Source: NewsecKAUNAS OFFICE STOCK BY CLASS, sqm
%
B Class A Class
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E
OFFICE STOCK PER CAPITA IN CENTRAL AND EASTERN EUROPEAN CITIES
KAUNAS OFFICE OUTLOOK 2018 MODERN OFFICE PREMISES
3
No. Developer/Owner Name Leasable area, sqm Class Address
1 Cetarium Kauno Duona 8 550 B V. Kreves av. 129
2 Realinija Jonavos 30 2 500 B Jonavos st. 30
3 Urban Inventors Kauno Dokas I 9 150 B Jonavos st. 7
4 YIT Kausta B66 4 930 B K. Barsausko st. 66
5 Miesto renesansas Renesansas I 3 500 B A. Juozapaviciaus av. 11D
6 Vaistiniu valda Birželio 23 1 500 B Birzelio 23-osios st. 4
7 Altas Pramones BC 2 560 B Pramones av. 4A
8 Infokodas Savanoriu 277 1 500 B Savanoriu av. 277
9 Mj Consulting Sitis 3 400 B Veiveriu str. 139
10 Abromika Lapeno Namas 1 800 B Kestucio st. 38
11 Polonezas Ausra Business Park A & B 4 500 B Vytauto av. 23, 27, 29
TOTAL 43 890
OFFICE BUILDINGS LAUNCHED IN KAUNAS 2017
«The Kaunas office market is changing rapidly – four major office centres launching in 2018-2019 will be A class premises with a total gross leasable area of 44,300 sqm»
0
2
4
6
8
10
12
14
Source: Newsec
Katowice Kaunas Sofia Krakow Budapest Riga Tallinn Vilnius
AVERAGE VACANCY RATE IN CEE
12.70%11.00%
10.20%9.20%
8.60%
7.00%
5.50%
3.40%
%
0
2
4
6
8
10
12
14
16
18
Source: Newsec
Kaunas
B class A class
AVERAGE OFFICE RENT RATE, EUR/sqm/month
Vilnius Kaunas Vilnius
8-119-12
12-14
14-16
KAUNAS OFFICE OUTLOOK 2018MODERN OFFICE PREMISES
4
CENTRE
OLD TOWN
SANCIAI
PANEMUNE
PETRASIUNAI
VILNIUS
KAUNAS FEZ
KLAIPĖDA
DAINAVA
GRICIUPIS
EIGULIAI MURAVASILAINIAI
VILIJAMPOLE
ALEKSOTAS
FREDA
ZALIAKALNIS
Existing Office buildings
Under development Office buildings Central business district
New business district
Old business district
OFFICE BUILDINGS IN KAUNAS No Project Name Address, street Openings of 2017 1 Kauno Dokas Jonavos str. 72 Kauno Duona V. Kreves ave. 1293 Jonavos 30 Jonavos str. 304 B66 Barsausko str. 665 Renesansas 1 Juozapaviciaus str. 116 Birzelio 23 Birzelio 23-osios str. 47 Pramones BC Pramones ave. 4A8 Savanoriu 277 Savanoriu ave. 2779 Sitis Veiveriu str. 13910 Lapeno Namas Kestucio str. 3811 Ausra Business Park A&B Vytauto ave. 23, 27, 29 Openings of 201812 Arka Karaliaus Mindaugo ave. 3713 Kauno Dokas II Jonavos str. 714 River Hall Jonavos str. 6015 Konversus Chemijos str. 1516 K26A New V. Kreves str. 26A17 Kalantos 49 Kalantos str. 4918 Nemuno 3 Nemuno str. 319 Partizanu 15B Partizanu str. 15B20 Cube Savanoriu ave. 321C21 Ausra Business Park C Vytauto ave. 23, 27, 2922 A43 Ateities hwy. 4323 KMA Kaunakiemio str. 1 Openings of 2019 and later 24 Magnum Karaliaus Mindaugo ave. 3825 BLC2 K. Donelaicio str. 6026 Renesansas 2 Juozapaviciaus str. 1327 Piliamiescio BC Brastos str. 2428 Savanoriu 367 Savanoriu ave. 367 Existing Office buildings 29 Maironio 28 Maironio str. 2830 Plaza BC Taikos ave. 14131 Swedbank Maironio str. 26B32 BC 363 Savanoriu ave. 363A33 Savanoriu 363A Savanoriu ave. 36334 Savanoriu 349 Savanoriu ave. 34935 BLC Donelaicio str. 6236 Artis Savanoriu ave. 17837 Vytauto 32 Vytauto ave. 3238 Diurablis Partizanu str. 63M39 Savanoriu 221 Savanoriu ave. 22140 Technopolis Europos ave. 12141 BC 1000 Taikos ave. 88A42 Nordic BC Savanoriu ave. 19243 Kalantos 161 R. Kalantos str. 16144 Savanoriu 292B Savanoriu ave. 292B45 Capital Putvinskio str. 5046 Ausra Business Park Vytauto ave. 23, 27, 2947 K26A V. Kreves str. 26A48 Barkodas Pramones ave. 4D49 Senukai BC Islandijos hwy. 3250 NFQ (BTS) Brastos str. 1551 BC Mikrovisata Savanoriu ave. 10952 Ozeskienes 17 Ozeskienes str. 1753 Maironio 11 Maironio str. 1154 Pramones 23 Pramones ave. 2355 Kalantos 34 R. Kalantos str. 3456 Chemijos 9D Chemijos str. 19A57 Neries BC Neries krnt. 1858 Barkodas Pramones ave. 4E59 Daimonda Taikos ave. 131B60 Partizanu 15 Partizanu str. 15
1
3
2750
4
7
15
1755
43
54
47
3059
41
38
58
56
48
6
265
2
1314
8
19
20
28
60
34
49
33 32
44
10
253529
3153
52
45
51
57
36
4239
23
46
40
2137
241218
9
16
11
KAUNAS OFFICE OUTLOOK 2018 MODERN OFFICE PREMISES
5
CENTRE
OLD TOWN
SANCIAI
PANEMUNE
PETRASIUNAI
VILNIUS
KAUNAS FEZ
KLAIPĖDA
DAINAVA
GRICIUPIS
EIGULIAI MURAVASILAINIAI
VILIJAMPOLE
ALEKSOTAS
FREDA
ZALIAKALNIS
Existing Office buildings
Under development Office buildings Central business district
New business district
Old business district
OFFICE BUILDINGS IN KAUNAS No Project Name Address, street Openings of 2017 1 Kauno Dokas Jonavos str. 72 Kauno Duona V. Kreves ave. 1293 Jonavos 30 Jonavos str. 304 B66 Barsausko str. 665 Renesansas 1 Juozapaviciaus str. 116 Birzelio 23 Birzelio 23-osios str. 47 Pramones BC Pramones ave. 4A8 Savanoriu 277 Savanoriu ave. 2779 Sitis Veiveriu str. 13910 Lapeno Namas Kestucio str. 3811 Ausra Business Park A&B Vytauto ave. 23, 27, 29 Openings of 201812 Arka Karaliaus Mindaugo ave. 3713 Kauno Dokas II Jonavos str. 714 River Hall Jonavos str. 6015 Konversus Chemijos str. 1516 K26A New V. Kreves str. 26A17 Kalantos 49 Kalantos str. 4918 Nemuno 3 Nemuno str. 319 Partizanu 15B Partizanu str. 15B20 Cube Savanoriu ave. 321C21 Ausra Business Park C Vytauto ave. 23, 27, 2922 A43 Ateities hwy. 4323 KMA Kaunakiemio str. 1 Openings of 2019 and later 24 Magnum Karaliaus Mindaugo ave. 3825 BLC2 K. Donelaicio str. 6026 Renesansas 2 Juozapaviciaus str. 1327 Piliamiescio BC Brastos str. 2428 Savanoriu 367 Savanoriu ave. 367 Existing Office buildings 29 Maironio 28 Maironio str. 2830 Plaza BC Taikos ave. 14131 Swedbank Maironio str. 26B32 BC 363 Savanoriu ave. 363A33 Savanoriu 363A Savanoriu ave. 36334 Savanoriu 349 Savanoriu ave. 34935 BLC Donelaicio str. 6236 Artis Savanoriu ave. 17837 Vytauto 32 Vytauto ave. 3238 Diurablis Partizanu str. 63M39 Savanoriu 221 Savanoriu ave. 22140 Technopolis Europos ave. 12141 BC 1000 Taikos ave. 88A42 Nordic BC Savanoriu ave. 19243 Kalantos 161 R. Kalantos str. 16144 Savanoriu 292B Savanoriu ave. 292B45 Capital Putvinskio str. 5046 Ausra Business Park Vytauto ave. 23, 27, 2947 K26A V. Kreves str. 26A48 Barkodas Pramones ave. 4D49 Senukai BC Islandijos hwy. 3250 NFQ (BTS) Brastos str. 1551 BC Mikrovisata Savanoriu ave. 10952 Ozeskienes 17 Ozeskienes str. 1753 Maironio 11 Maironio str. 1154 Pramones 23 Pramones ave. 2355 Kalantos 34 R. Kalantos str. 3456 Chemijos 9D Chemijos str. 19A57 Neries BC Neries krnt. 1858 Barkodas Pramones ave. 4E59 Daimonda Taikos ave. 131B60 Partizanu 15 Partizanu str. 15
1
3
2750
4
7
15
1755
43
54
47
3059
41
38
58
56
48
6
265
2
1314
8
19
20
28
60
34
49
33 32
44
10
253529
3153
52
45
51
57
36
4239
23
46
40
2137
241218
9
16
11
KAUNAS OFFICE OUTLOOK 2018MODERN OFFICE PREMISES
6
OSLOBERGEN
TRONDHEIM
GOTHENBURG
MALMÖCOPENHAGEN
STOCKHOLMHELSINKI
TALLINN
RIGA
VILNIUS
KLAIPEDA
KAUNAS
OULU
TAMPERE
AARHUS
Newsec — The Full Service Property House in Northern Europe — is by far the largest specialised commercial property firm in Northern Europe.
Newsec manages more properties and carries out more transactions, more lettings and more valuations than any other firm in Northern Europe. Through this great volume, and the knowledge and depth of our various operations, we acquire extensive and detailed knowledge of the real estate market. In turn, we can quickly identify business opportunities that create added value.
Our prime market is Northern Europe, butthrough our alliance membership with BNP Paribas Real Estate, we offer our services on the global market. This makes Newsec Northern Europe’s only full service property house, and provides us with a unique ability to forecast the future.
A history of growthNewsec is the result of a unique history of growth, characterised by constant originality of thinking. The first issue of the comprehensive market analysis, Newsec Property Outlook, was published in 2001. The Group
expanded internationally into Finland in 2001, Norway in 2005, the Baltic countries in 2009 and Denmark in 2016. The Norwegian asset and property management companies First Newsec Asset Management and TM Partner were acquired in 2012. In 2013, Newsec acquired Jones Lang LaSalle’s Swedish property management operation. In 2017, Newsec grew with the acquisitions of Norwegian Basale and Danish Datea, further strengthening the position within Property Asset Management.
Newsec was founded in 1994 and is todaya partner-owned company with some
2000 co-workers spread across the seven Nordic and Baltic markets. Newsec has approx. EUR 39 billion under management and annually signs lease agreements of some 760 000 sqm, manages transactions of someEUR 3 billion and does real estate valuations of underlying property worth almost EUR 180 billion. Thanks to large volumes, local presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise of the real estate market in northern Europe.
THE FULL SERVICE PROPERTY HOUSEIN NORTHERN EUROPE
KAUNAS OFFICE OUTLOOK 2018 MODERN OFFICE PREMISES
7
CONTACT AND ADDRESSES
More analytical information at Newsec:
Head of Research and AnalysisMindaugas KulbokasCell +370 652 10556E-mail [email protected]
ConsultantGintaras TolockaCell +370 685 06940E-mail [email protected]
Office solutions at Newsec:
Head of BrokerageJurgita SilaikyteCell +370 659 66808E-mail [email protected]
Tenant ConsultingHead of Corporate SolutionsMartynas BabilasCell +370 616 12216E-mail [email protected]
Landlord ConsultingAdvisorMarius PrieskenisCell +370 687 701 17E-mail [email protected]
Office FIT-OUT ServiceHead of Project ManagementTadas GrinceviciusCell +370 679 79779E-mail [email protected]
Office Care and Property ManagementHead of Office Management GroupJustas BandzaCell +370 6555 8989E-mail [email protected]
LITHUANIAKonstitucijos ave. 21CLT-08130 VilniusPhone +370 5 252 6444E-mail [email protected]
LATVIAVilandes str. 1LV -1010 RigaPhone +371 6750 84 00E-mail [email protected]
ESTONIARoseni str. 7EE-10111 TallinnPhone +372 664 5090E-mail [email protected]
THE FULL SERVICE PROPERTY HOUSE IN NORTHERN EUROPE
