Office space market in Tallinn ventures into new areas

The market for office space in Tallinn is now looking for new niches and challenges. One of such novelties is a possibility to buy a few thousand square metre lots together with a detail plan. On the one hand the buyer can match the lot to his needs while being saved to go through the lengthy approvals procedure. There are now offers for lots planned either for warehousing- production- service or office space -says Tõnu Toompark- property analyst for ERI Kinnisvara.

Developers have also began to co-operate. The first developer purchases the land and organizes detail planning. He then sells the lot to a new developer who will buy the land and build the edifices.

Cheap credit means that banks are relatively content to borrow money for projects that do not yet suffer under oversupply. Constant growth in incomes and purchasing power means that there are more clients and more choice for them.

Prices are likely to remain relatively stable over time. There will always be overoptimistic and overpessimistic expectations.

As companies become financially more stable- they begin to look for alternatives to renting office space. Those firms that have a stable inflow of income have started to replace renting with property ownership.

Toompark says that the market for office space is generally well divided according to the function. On the one hand are boutiques and small service companies that are mainly located in the Old Town. On the other hand are groceries and other vendors that serve masses have found their place in large shopping malls outside the centre. Also car dealers have found their place in the suburbs.

Artikkel ilmus 11/03/2002 väljaandes

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