Tallinn Office Outlook, 2026 H1

Approximately 16,000 sqm of new office space was delivered in H1 2026, with Marati Maja in the city centre the only major completion. A further 13,000 sqm is expected in H2, bringing full-year supply to around 29,000 sqm. The cycle shifts sharply in 2027, when some 85,000 sqm is scheduled — including Talsinki Quarter by US Real Estate and the Viktor Masingu Building in Ülemiste City, together around 36,000 sqm.

Overall vacancy is forecast to edge up to about 8.7% over the medium term, but the two segments are moving in opposite directions: Class A vacancy is expected to fall from 7.3% to around 7.0%, while Class B rises from 8.6% to approximately 9.5%. Rents held broadly stable — Class A at 17.3–24.0 EUR/sqm/month, B+ at 16.5–22.0 and Class B at 11.75–15.75. Landlords of older buildings are competing through incentives, fit-out contributions and refurbishment rather than headline rent cuts.

The throughline: repositioning is becoming a live strategy for obsolete stock. Metro Capital is the first developer in Tallinn to announce the conversion of an office building into residential apartments — a signal of where secondary assets are headed as the 2027 supply wave approaches.

Source: Newsec Tallinn Office Outlook, 2026 H1