Vilnius office vacancy exceeds 10% in Q3 2025

The third quarter of 2025 saw significant changes to the office market in the capital city, with the construction of three large office buildings achieving completion: Hero on Lvivo Street, Jasinskio 2 on J. Jasinskio Street, and new office building on Švitrigailos Street developed by Vilbra. These projects added a total of 42,700 sqm of usable office space to the market, increasing the total area of modern office premises in Vilnius by almost 4% to 1,236,700 sqm.

‘This is one of the largest space increases in a quarter since 2020. The substantial expansion of office space and the ongoing sluggish activity of tenants also resulted in a significant rise in the vacancy rate of office premises,’ says Raimondas Reginis, Ober-Haus’s market research manager for the Baltic countries. According to Ober-Haus data, during the third quarter of 2025, the vacancy rate for offices in the capital increased from 8.5% to 10.3%. The vacancy rate for A class offices was 11.2%, and for B class – 9.6%.

In the capital, the last time there was such a high overall vacancy rate for modern office space, was mid-2011, at 10.4%. ‘At that time, the entire real estate market was experiencing one of its weakest periods since the global financial crisis, and the office sector was no exception. However, the office market was not as developed then, with the total area of modern offices being almost three times smaller than it is today,’ says R. Reginis. A 10% vacancy rate in 2011 represented approximately 46,000 sqm of vacant office space, the total vacant space in buildings operating now, is almost three times larger at around 127,000 sqm.

Based on the indicators from the last decade, it is evident that the occupancy rates of top-class business centres are generally higher than those of lower-class office buildings. During periods of rapid economic growth, expanding or newly established companies tend to invest more in creating attractive workplaces and choose to rent higher-quality office space in better locations in the city.

‘However, the simultaneous opening of several, or one large project, can alter this ratio. For example, in September 2025, construction of one of the largest business centres, Hero, was completed next to Konstitucijos Avenue in Vilnius. It is reported that this project offered the market over 30,000 sqm of leasable space and opened with 25% occupancy. A project of this size can significantly impact the overall and respective segment occupancy rates, as evidenced by the latest indicator for A class vacant office space. A similar situation arose in 2018 when a large number of new, A class office buildings opened in the capital city, one after another, and the vacancy rate in this office segment had exceeded that of the B class,’ says R. Reginis.

Despite companies currently focusing more on using their available space efficiently, this is a particularly favourable time for tenants looking for new workspace. The wide and abundant selection of vacant offices gives businesses a much broader choice and a stronger negotiating position when discussing lease terms with landlords. R. Reginis points out that, despite the noticeable tension in the office market, property owners are not yet inclined to change their base rents fundamentally. Instead, they are focusing on offering more attractive lease terms to potential tenants, such as shorter lease periods, the option to lease smaller spaces, and greater investment in the fit-out of the premises. Meanwhile, office rents in 2025 remained largely unchanged, with B class offices usually offered at €10.0–€15.5/sqm and A class at €16.0–€20.0/sqm, and reaching €21.0–€22.0/sqm for the most attractive premises in the newest business centres.

The office market in Kaunas and Klaipėda: a balance of supply and demand

Although Kaunas has not seen many office development projects recently, investors regularly offer new office spaces to tenants. The conversion of the former Drobė factory in Žemieji Šančiai into modern commercial premises is ongoing. Over 20,000 sqm of space in the historic building are being converted into areas suitable for retail, offices and other activities. In 2021, the Drobė Factory project offered office space on several floors to the market, and in the third quarter of 2025, another floor was adapted for office use, offering up to 3,800 sqm of space.

According to Ober-Haus data, currently, the total area of modern office space in Kaunas is 252,200 sqm, and the vacancy rate rose from 4.4% to 5.3% during Q3 2025. Over the next 12 months, three major new projects are expected to be completed in Kaunas (Hermanas, Kauno Parkas and former Kaunas household goods store, the Juzė building on Savanorių Avenue), which will offer over 20,000 sqm of office space to the market. Currently, the growth of new office space and the level of demand in Kaunas are balanced, so rents have remained stable. The newest and highest-class business centres in Kaunas are currently asking rents of around €16.0–€19.0/sqm, while office rents in B class buildings are usually around €10.0–€14.0/sqm.

No newly developed premises were added to the modern office market in Klaipėda in Q3 2025, so the total area of modern office premises remained unchanged at 82,800 sqm. As a result, a steady decline in vacancy rate continues to be recorded. According to Ober-Haus data, during the third quarter, the vacancy rate fell from 6.1% to 4.8%, one of the lowest figures in the city’s modern office history.

Although the choice of office space for tenants in Klaipėda is currently limited, projects nearing completion will soon provide more options for those looking for modern offices. The Hanza business centre, which has a floor area of almost 11,000 sqm, is nearing completion. More than 80% of it has already been leased. Companies setting up in new projects often vacate premises in older office buildings, providing an opportunity for other tenants to move into the vacated spaces. Construction of the new Smiltynės Perkėla terminal on Nemuno Street is also nearing completion. It will feature passenger waiting rooms, ticket offices, a café and administrative staff offices, and some of the office space will be available for rent. On Mokyklos Street, the Sendvario Dvaras commercial complex is under development and will offer premises for various activities. At the beginning of 2026, construction of an office building with an area of over 2,000 sqm on Taikos Avenue is expected to be completed. R. Reginis notes that as a result, we should see greater tenant movement in the Klaipėda office market than we have seen so far.