Interest in New, Energy-Efficient Office Spaces Remains Strong in the Commercial Real Estate Market
Although the office space market has been rather passive recently, demand continues for new, energy-efficient offices that offer added value. As a region, the city center and its attractive business quarters command premium prices.
According to Aira Veelmaa, a real estate broker at Uus Maa, companies are currently making relocation decisions when they have a very specific need – either the tenant lacks the option to extend their lease or the company's office space requirements have changed. Many companies have already made their decision and are waiting for new space to be ready in a new office building. In older office buildings, supply exceeds demand even at favorable prices in B and C-class buildings, as these cannot keep up with client needs.
"We see that expectations for office space are changing. While office buildings were previously characterized by large grand lobbies and work spaces with personal desks, the trend is now moving toward environmentally friendly buildings and economical use of space," said broker Aira Veelmaa. Hybrid work has created a need for room solutions that foster collaboration while also allowing for privacy, as well as a more motivating work environment. Companies particularly value the opportunity to have their office built as a custom solution.
As an example, Veelmaa points to Finsupport, a company that recently made a relocation decision, choosing the newly renovated office building at Maakri 23A as its new office location because the building allows the company to design its office according to its own vision.
"We work remotely at times and have planned work stations that can be shared. We liked the space solutions in the Maakri building and the opportunity to furnish the office ourselves. Also important was the pleasant indoor climate characteristic of the new environmentally friendly building and favorable operating costs. Twelve people will start work in the new location, and there is potential for a few more people in the office," said Kaari Nairismägi, financial director of Finsupport. Finsupport OÜ, founded two years ago, provides companies with support services in implementing business strategies. The company was prompted to look around the market by rapid growth and a desire to move to a new, spacious, and beautiful office.
According to broker Aira Veelmaa, the second trend is the increasing relevance of added value associated with office space, which is why many companies prefer locations in the city center and business quarters where there are non-work activities. For example, BPW, a company operating in the information technology field for 25 years, began looking for new space because their old lease had expired and it was no longer possible to extend it. "Our choice fell on the building at Maakri 23A because the location in the city center is important to us. We also valued the developer's promise to create a dining facility in the office building and the presence of nearby cafes. The beautiful design of the spaces is also important, as it helps employees start the day positively. Despite hybrid work, we spend a lot of time meeting with clients, and from the city center, we can quickly get to any part of the city," explained BPW's choice of location.
Finsupport also mentioned the suitability of the area and the presence of dining options as added value in choosing the office. "We wanted to be centrally located near hotels, the airport, and restaurants. In addition, Maakri has less noise and traffic than some other central areas. The street itself is small and pleasant. Maakri is stylish and not a very large business quarter," Finsupport pointed out the arguments for its choice.
