Kaunas Office Outlook, 2025 H1 -
The Kaunas office market entered 2025 in a period of tight supply and rising demand, shaped by years of limited development and a rapidly maturing business ecosystem. With vacancy at historically low levels and new projects finally approaching completion, the city is preparing for a pivotal shift in market balance.
↓ Parsisiųsti
Kaunas Office Market Outlook 2025 H1
In Kaunas no new office space was delivered in H1 2025, keeping total modern stock at 277,300 sqm and maintaining vacancy at a very low 2.3%. This severe shortage has restricted tenant movement, delayed relocations, and created strong upward pressure on rents — especially in the A-class segment, where asking prices now stand at €16.0–18.0/sqm/month. B-class rents have also risen significantly to €8.0–15.0/sqm/month, depending on quality and location.
A major shift is expected in H2, with approximately 23,600 sqm set to enter the market, including the landmark 10,600 sqm Hermanas building — the most substantial annual addition since 2020. This new supply is anticipated to temporarily lift vacancy and test the adaptability of tenants who have become accustomed to extremely limited availability.
Take-up in H1 reached 6,000 sqm, mirroring last year’s result but still far below pre-pandemic norms. Demand is stable but constrained by the lack of options, with many occupiers opting to renew leases instead of relocating. Pre-leasing for upcoming projects remains below expectations, though interest is rising as delivery dates near and competition for prime, ESG-ready space intensifies.
Kaunas continues to strengthen its economic base: the city’s workforce has grown by 10% over five years, and the number of businesses has increased by 28%, signalling long-term potential for office market expansion. As new, higher-specification developments arrive, the Kaunas office market is moving into a new cycle of growth, with improved choice for tenants and a gradual rebalancing expected throughout 2025.