Vilnius office outlook 2019_MIPIM

VILNIUS OFFICE OUTLOOK SPECIAL EDITION MIPIM 2019 Uptown Park, Svitrigailos str. 13, Vilnius (2019-2020)

MODERN OFFICE PREMISES VILNIUS OFFICE OUTLOOK, SPECIAL EDITION MIPIM 2019 MODERN OFFICE PREMISES SUPPLY rate remains extremely low in the context an all-time record in the Vilnius office By the end of 2018 the stock of modern of the European office market as the market. In 2018 take-up amounted to office premises in Vilnius totalled average vacancy rate in Western Europe almost 75,000 sqm. It is forecast that 635,200 sqm which equals to 1.16 sqm is 7.0-8.0%. However, considering that take-up in upcoming years will remain at per capita. significant part of new developments are the same level reaching at least 70,000 Four A class office buildings with a total speculative, low vacancy rates do not sqm per year. gross leasable area of 39,700 sqm were limit choice for tenants that are planning The largest transactions in 2018 were delivered in 2018. The buildings were: office demand properly in advance. made by SEB, Maxima Group, Yara, Ernst Asgaard Keys, Business Stadium West, The vacancy rate for A class office & Young Baltic, Teleperformance and Link and Sail no. 3. The year marked an premises has increased from 2.7% to many smaller entities. In 2018, Newsec expansion of CBD as all new business 5.0%. The rate is not expected to further advised on nearly 70% of all transactions. centres were located in the heart of the increase as most of the premises opening city. in 2019 are almost fully pre-leased. RENTAL RATES A class premises located in CBD will The vacancy rate for B class office In 2018, the average rent for B class continue dominating the pipeline in 2019 buildings has decreased from 3.4% to premises slightly increased, whereas making up 70% of the new stock delivery. 2.8%. It has been shrinking gradually and that for A class premises remained the In 2020 the proportion of new A and this quarter reached the lowest level in same. In 2017-2018 the average market B class premises will even out. Intense 2017-2018. Such a low vacancy rate in rent for prime office space in Vilnius CBD competition in the A class segment and this segment prompted the development amounted to 14.0-16.0 EUR/sqm/month, continuously-decreasing B class vacancy of new B class premises in the city and its reaching 17.0 in special cases. In other rate prompted the development of B outskirts. central areas, rents were in the range class premises. The average vacancy rate is expected of 12.0-13.0 EUR/sqm/month, whereas In total, it is forecast that during 2019- to increase but only by a small margin those for B class offices located further 2020 the Vilnius office market will as most of the premises opening in the from the city centre averaged 9.0-11.0. increase by approx. 218,000 sqm of coming years are almost fully pre-leased. The highest B class rents were captured modern office space. Currently, 12 out of in business campuses and other 16 projects planned for 2019-2020 are DEMAND professionally-managed buildings. Rental under construction. Even though the average yearly take- rates gradually increase as new projects up in the last five years amounted to offer higher quality standards. VACANCY 60,000 sqm, both in 2017 and 2018 In Q4 2018, the average vacancy rate in it was significantly higher than that. In Vilnius increased from 3.1% to 3.7%. The 2017 it reached 80,000 sqm marking OFFICE STOCK DEVELOPMENT: thousand sqm Source: Newsec PROJECT UNDER DEVELOPMENT, thousand sqm Source: Newsec 900 +17% 250 800 700 +14% 200 107 49% 600 +13% +7% 150 44 24% 500 +19% 400 300 100 111 51% 200 100 139 76% 50 0 2006 0 Q4 2018 2007 Q4 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E Existing stock Additional stock A class B class 2

VILNIUS OFFICE OUTLOOK, SPECIAL EDITION MIPIM 2019 MODERN OFFICE PREMISES «The office market keeps rapidly expanding with demand continuously meeting supply» VACANCY RATE, % Source: Newsec RENT, EUR/sqm/month Source: Newsec 25% 14.0-17.0 9.0-13.0 20% 15% 5.0% B CLASS 10% 2.8% 5% 0% 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Vacancy rate A class Vacancy rate B class A CLASS OFFICE DEVELOPMENT IN VILNIUS IN 2019-2020 Developer / Owner Location / Name GLA, sqm Description Status Exp. finishing YIT Duetto, stage II 8 300 B class, Virsuliskes Construction 2019 Darnu Group Park Town East Hill 14 800 Construction 2019 EIKA Live Square 6 800 A class, CBD Construction 2019 M.M.M. Projektai Saltoniskiu 7, stage II 15 000 A class, Central area Construction 2019 PST U219 16 000 Construction 2019 Urban Inventors Green Hall 3 2 500 A class, CBD Construction 2019 M.M.M. Projektai Saltoniskiu 7, stage III 15 000 B class, Ukmerges st. Construction 2019 Schage Quadrum South 13 000 Construction 2019 Darnu Group Paupys 20 000 A class, CBD Construction 2020 Lords LB SEB HQ 12 700 A class, CBD Construction 2020 M.M.M. Projektai Savanoriu av. 5 9 700 A class, CBD Construction 2020 Vilbra Uptown Park 12 500 B class, Uzupis Construction 2020 Technopolis Nova 26 740 A class, CBD 2020 Hanner Business Stadium North 15 000 B class, Savanoriu av. Planned 2020 Lords LB Lvovo 37 15 600 B class, Naujamiestis Planned 2020 YIT Linkmenu 17A 14 000 B class, Ozas Park Planned 2020 TOTAL A class, CBD Planned 217 640 A class, CBD B class, Snipiskes Source: Newsec 3

MODERN OFFICE PREMISES VILNIUS OFFICE OUTLOOK, SPECIAL EDITION MIPIM 2019 OFFICE BUILDINGS IN VILNIUS 66 TARANDE No Project Name Openings of 2019 Address, street 1 Duetto, stage II Virsuliskiu ln. 26 2 Park Town East Hill Lvovo str. 105A 3 Live Square Gedimino ave. 44A 4 Saltoniskiu 7, stage II Saltoniskiu str. 7 5 U219 Ukmerges str. 219 6 Green Hall 3 Upes str. 21 7 Saltoniskiu 7, stage III Saltoniskiu str. 7 8 Quadrum South Konstitucijos ave. 21B Openings of 2020 9 Paupys Paupio str. 10 SEB HQ Konstitucijos ave. 24 11 Savanoriu av. 5 Savanoriu av. 5 12 Uptown Park Svitrigailos str. 13 13 Nova V. Gerulaičio str. 18 14 Business Stadium North Rinktines str. 5 15 Lvovo 37 Lvovo str. 37 16 Linkmenu 17A Linkmenu str. 17A Openings of 2021 and later 17 K18b Konstitucijos ave. 18B 18 Business Garden, stage I Laisves ave. 10 19 Saltoniskiu 7, stage IV Saltoniskiu str. 7 20 Business Stadium, stage III Rinktines str. 5 Existing office buildings 21 Quadrum Business City Konstitucijos ave. 21, 21C 22 Asgaard Keys Ukmerges str. 124 23 Link Saltoniskiu str. 9B 24 3 Bures III Giedraiciu str. 3 JUSTI 25 Business Stadium West Rinktines str. 5 26 Park Town West Hill Lvovo str. 105 70 27 Green Hall 2 Upes str. 21 32 1 28 S7 I Saltoniskiu str. 7 69 29 Penta Ozo str. 12A 30 Narbuto 5 Narbuto str. 5 68 67 31 Domus Pro Bieliunu str. 1 KAROLINISK 32 Duetto I Spaudos str. 8 33 Eleven Kareiviu str. 11 34 B Nordic 26 J. Basanaviciaus str. 26 35 City Zalgirio str. 90 36 135 Zalgirio str. 135 PILAITE 37 Delta J. Balcikonio str. 9 38 Highway Savanoriu str. 178 39 Uniq A. Gostauto str. 12a 40 k29 Konstitucijos ave. 29 41 Premium Sporto str. 18 42 IBC (International Business Centre) Seimyniskiu str. 3A, 3, 1A / A. Juozapaviciaus str. 6/2 43 3 Bures Lvovo str. 25 44 Europa Konstitucijos ave. 7 45 Swedbank Headquarters Konstitucijos ave. 20A 46 GV18A Gelezinio Vilko str. 18A 47 Danske Bank Saltoniskiu str. 2 48 Saltoniskiu 10C Saltoniskiu str. 10C 49 Baltic Hearts Ukmerges str. 120 50 Green Hall Upes str. 21 51 Marenta Business Centre Kestucio str. 65 52 Vertas Gyneju str. 16 53 Merchants' Club Gedimino ave. 35 54 Plaza 31/1 Vilniaus str. 31 / Islandijos str. 1 55 Business Centre 2000 Jogailos str. 4 56 Basanaviciaus 15 J. Basanaviciaus str. 15 57 BC 12 J. Jasinskio str. 12 58 MG Baltic J. Jasinskio str. 16, 16A, 16B, 16C 59 Eika Business Centre A. Gostauto str. 40a, 40b 60 G40 A. Gostauto str. 40 61 Business Centre Svitrigailos 11b Svitrigailos str. 11B, 11H, 11M 62 Vytenio 46 Vytenio str. 46 63 Skraidenis Naugarduko str. 100, 102 LAZDYNAI 64 LJB Savanoriu ave. 28 LAZDYNELIAI 65 Evita Savanoriu ave. 18 66 L3 Laisves ave. 3 67 JIN&JAN Menulio str. 7, 11 68 Trapecija Pilaites ave. 16 69 Atea J. Rutkausko str. 6 70 Grand Office Virsuliskiu ln. 34 71 GROTrIriGaonISgeKOESffice Senasis Ukmerges Rd. 4 72 Perkunkiemo str. 3, 5, 7 73 Business Park Four Perkunkiemo str. 2, 4, 6 74 One Ukmerges str. 322 75 Kamane Ukmerges str. 369A 76 Sostena Ukmerges str. 280 77 Evolution Ukmerges str. 223 GARIUNAI 78 Akropolio Business Centre Ozo str. 25 79 BH-92 Zalgirio str. 92 80 Zalgirio Business Centre Zalgirio str. 88 81 North Star Ulonu str. 2 82 Ulonu Business Centre Verkiu str. 25C / J. Galvydzio str. 1 83 Domus Centre P. Luksio str. 32 84 Ozo Business Centre Ozo str. 10A 85 Alfa V. Gerulaicio str. 1 86 Beta J. Balcikonio str. 3 87 Gama Kalvariju str. 204 88 NCBC Kareiviu str. 6 Under development Office buildings 89 Eta Zirmunu str. 107 Existing Office buildings 90 Zirmunu Business Centre Zirmunu str. 139 CBD 91 Sunrise Valley Sauletekio ave. 15 Business triangle 92 VITP Mokslininku str. 2A 4 ZEMIEJI PANERIAI

VILNIUS OFFICE OUTLOOK, SPECIAL EDITION MIPIM 2019 MODERN OFFICE PREMISES SANTARISKES 92 74 JERUZALE 72 73 31 75 TURNISKES 76 PASILAICIAI FABIJONISKES 90 BALTUPIAI 89 91 88 33 INISKES 87 37 86 13 85 77 29 84 5 82 83 SESKINĖ 78 VIRSULISKES SNIPISKES 81 36 ZIRMUNAI 7 KES 16 793580 ANTAKALNIS 232129744942884476 26 2 8 40 51 30 10 21 15 24 43 2750 6 451744 ZVERYNAS 39 124025 41 52 42 58 57 53 59 3 60 55 1165 34 56 54 UZUPIS 64 NAUJAMIESTIS 9 SENAMIESTIS 61 18 66 12 62 RASOS MARKUCIAI VILKPEDE 63 PAVILNYS NAUJININKAI 38 5

MODERN OFFICE PREMISES VILNIUS OFFICE OUTLOOK, SPECIAL EDITION MIPIM 2019 THE FULL SERVICE PROPERTY HOUSE IN NORTHERN EUROPE Newsec — The Full Service Property in 2001, Norway in 2005, the Baltic Newsec has approx. EUR 39 billion under House in Northern Europe — is by far the countries in 2009 and Denmark in 2016. management and annually signs lease largest specialised commercial property The Norwegian asset and property agreements of some 760 000 sqm, firm in Northern Europe. management companies First Newsec manages transactions of some Asset Management and TM Partner EUR 3 billion and does real estate Newsec manages more properties and were acquired in 2012. In 2013, Newsec valuations of underlying property worth carries out more transactions, more acquired Jones Lang LaSalle’s Swedish almost EUR 180 billion. Thanks to large lettings and more valuations than any property management operation. In volumes, local presence combined other firm in Northern Europe. Through 2017, Newsec grew with the acquisitions with in-depth understanding of a range this great volume, and the knowledge of Norwegian Basale and Danish Datea, of businesses, Newsec has a unique and depth of our various operations, we further strengthening the position within expertise of the real estate market in acquire extensive and detailed knowledge Property Asset Management. Northern Europe. of the real estate market. In turn, we can quickly identify business opportunities Newsec was founded in 1994 and is that create added value. today a partner-owned company with some 2000 co-workers spread across Our prime market is Northern Europe, the seven Nordic and Baltic markets. but through our alliance membership with BNP Paribas Real Estate, we offer OULU our services on the global market. This makes Newsec Northern Europe’s only TRONDHEIM full service property house, and provides us with a unique ability to forecast the TAMPERE future. HELSINKI Newsec is the result of a unique STOCKHOLM history of growth, characterised by constant originality of thinking. The TALLINN first issue of the comprehensive market analysis, Newsec Property Outlook, was published in 2001. The Group expanded internationally into Finland BERGEN OSLO GOTHENBURG MALMÖ RIGA KLAIPEDA AARHUS COPENHAGEN KAUNAS VILNIUS 6

VILNIUS OFFICE OUTLOOK, SPECIAL EDITION MIPIM 2019 MODERN OFFICE PREMISES CONTACT AND ADDRESSES More analytical information at Newsec: Office solutions at Newsec: LITHUANIA Konstitucijos ave. 21C Head of Research and Analysis Head of Brokerage LT-08130 Vilnius Mindaugas Kulbokas Jurgita Silaikyte Phone +370 5 252 6444 Cell +370 652 10556 Cell +370 659 66808 E-mail [email protected] E-mail [email protected] E-mail [email protected] www.newsec.lt Consultant Tenant Consulting LATVIA Gintaras Tolocka Head of Corporate Solutions Vilandes str. 1 Cell +370 685 06940 Martynas Babilas LV -1010 Riga E-mail [email protected] Cell +370 616 12216 Phone +371 6750 84 00 E-mail [email protected] E-mail [email protected] www.newsecbaltics.com Landlord Consulting Head of Office Solutions ESTONIA Indre Narauskaite Roseni str. 7 Cell +370 698 83827 EE-10111 Tallinn E-mail [email protected] Phone +372 664 5090 E-mail [email protected] Office FIT-OUT Service www.newsecbaltics.com Head of Project Management Tadas Grincevicius Cell +370 679 79779 E-mail [email protected] Office Care and Property Management Head of Office Management Group Justas Bandza Cell +370 6555 8989 E-mail [email protected] 7

THE FULL SERVICE PROPERTY HOUSE IN NORTHERN EUROPE