Exclusive Surfaces in Fahle's Wooden Skyscraper Set Rental Price Records

The most exclusive spaces in Fahle's wooden skyscraper set rental price records

Rental price reaches nearly 30 euros per square meter 

In Tallinn's Fahle district, Estonia's first wooden-structured high-rise building, which will be completed by the end of the year, already has 83% of its rental spaces covered by signed contracts. On the most exclusive spaces of the building named Fahle Terraces, Estonia's record business real estate prices of approximately 30 euros per square meter have been achieved, while standard space prices remain at the average level of new development markets. 

Interest from tenants in the eight-story office building developed by Neutra Capital has been remarkably high. If Insurance serves as the anchor tenant, but other well-known companies such as Akzo Nobel, Uus Maa Pro, and Mediserv have also discovered the added value offered by the wooden high-rise. 

"We are very pleased with the market feedback. On the building's most exclusive spaces, which have access to green terraces and the best views of the city center, Ülemiste Lake, and the sea, we have achieved a rental price of approximately 30 euros per square meter – this is the current top tier of Estonia's business real estate. Standard space prices remain at the average level of the new development market," explained Kenneth Karpov, chairman of the board of Neutra Capital. 

Karpov added that tenant feedback on both the building's concept and the completed shell has been very positive. "As we predicted, the wooden high-rise provides added value to our clients, which has generated significant interest in office spaces. A wooden building offers employees a healthier and more comfortable work environment and provides companies with an opportunity to genuinely implement their sustainability goals. These are not just slogans – our first tenants confirm that these values are important to them and directly influence their choice," he noted. Tenants particularly value the improved indoor climate, good acoustics, and environmental friendliness. 

The building's first spaces will be handed over to tenants in autumn 2026, and the building will be completed by year-end. Three office spaces are still available. 

Fahle Terraces office building  

Located on the property at Tartu Road 84B, the building is Estonia's first wooden-structured high-rise. The eight-story building contains a total of 6,920 square meters of A-class office space. A distinctive feature of the building is the gradually expanding green terraces starting from the fourth floor, which offer views of the city center and the sea. 

The building follows modern construction principles and trends. Large windows ensure abundant natural light, natural materials and efficient ventilation add to the health benefits. Movable partitions provide flexibility in space design.  

The A-energy class building meets the highest energy efficiency standards. Cross-laminated timber (CLT) structures have a small ecological footprint, as timber as a renewable raw material is an excellent carbon storage medium. The building also implements other environmentally sustainable solutions, including solar energy use and rainwater harvesting. Thanks to wooden structures and special soundproofing panels, the building offers some of the best acoustics among Estonian office buildings. 

Neutra Capital is investing 13.4 million euros in the construction of the Fahle Terraces office building. The building was designed by architects Margit Aule and Kristo Põlluaas from Lumia Architecture Bureau. Since such a tall wooden building has not been constructed in Estonia before, the design process involved collaboration with scientists from Tallinn University of Technology and ETH Zurich. 

Neutra Capital AS is a company founded in 2004 that has grown to become one of Estonia's largest business real estate developers, operating under the name Fausto Capital AS until autumn of last year. The company's portfolio value reaches 232.4 million euros, encompassing over 60,000 square meters of rental space. With a 13-member team, the company's real estate portfolio includes, among others, Fahle district, Compass Building, Neutra Tower office building on Maakri Street, Tartu Telia office building, and several other office buildings.