Our markets

Eastnine’s markets are characterised by high economic growth, low office rent levels, and higher yields in comparison with other markets in Europe. At the same time, the financing conditions are comparable, resulting in robust cash flows and potential for long-term value appreciation.

Eastnine is present in some of the most dynamic cities in the fastest growing part of Europe. In terms of GDP per capita, Poland and the Baltic states have been steadily catching up with the rest of Europe over the last thirty years.

Poland 

Poland, with close to 40 million inhabitants, is set to become one of the world’s twenty largest economies in 2025 and GDP is expected to grow twice as fast as the EU average in the coming years, according to the International Monetary Fund. Poland is a member of the OECD since 1996, of NATO since 1999, and in the EU since 2004.

Eastnine owns three office properties in Poland. The 60,100 sq.m. Warsaw Unit is a landmark office building located on rondo Daszynskiego in the very heart of the rapidly developing city centre of Warsaw. Eastnine's market share (estimated) of office properties in the city is one per cent. The properties Nowy Rynek D and Nowy Rynek E are located in the reginal city of Poznan, which is the fifth largest city in Poland, midway between Warsaw and Berlin. Poznan has close to one million inhabitants in the metropolitan area and a vital business community as well as several major universities. Eastnine owns close to 68,000 sq.m. of lettable space in Poznan, making us the largest owner of office properties in the city, with a market share of approximately 10 per cent. The location in central Poznan, close to the central station, tram and the Old Town is optimal.

Lithuania 

Lithuania has exhibited stable growth ever since the country became independent of the Soviet Union in the early 90s. The level of education is high, and many international companies have established central business districts and ICT units in the country, as the digital infrastructure is some of the best in the EU. In 2004, Lithuania became a member of the EU and of NATO, strengthening its integration with the West. Lithuania, located on the eastern shore of the Baltic Sea, is the largest of the three Baltic countries with a population of around 2.9 million. Around half a million of the inhabitants live in the capital, Vilnius.  

Eastnine’s property portfolio in Lithuania is located entirely in Vilnius. The portfolio comprises office properties located in three central areas. Eastnine’s property Uptown Park is located in an area near the central station with many new constructions. The central business district, along the street Konstitucijos prospektas north of the river Neris, is home to a large part of the class A offices in Vilnius, and among them Eastnine’s three S7 properties, 3Bures-1,2 and 3Bures-3. Near the parliamentary quarters and the Old Town are the three properties Vertas-1, Vertas-2, and Uniq. Eastnine’s combined lettable area in Vilnius amounts to around 120,900 sq.m., corresponding to a market share of around 11 per cent of the office market in the city. 

Latvia 

Latvia, with its long Baltic coastline, has large seaports with connections to roads and railways. Latvia became independent of the Soviet Union in 1991, joined the EU and NATO in 2004, introduced the Euro in 2014 and became a member of the OECD in 2016. Latvia has approximately 1.9 million inhabitants, of which around 0.9 million live in the capital, Riga.  

In Riga, modern offices are being built centrally in the city, as yet without a clearly defined business district. All of Eastnine’s three office properties Valdemara Centrs, Zala 1 and Alojas Biroji, and the development property Kimmel, are located in central Riga, along one of the main streets, Krisjaņa Valdemara iela, and adjacent Zala iela. The total lettable area in the property portfolio amounts to around 22,600 sq.m., estimated to correspond to around three per cent of the office market in the city. There is also one upcoming development project in the portfolio, located on the same site as one of the investment properties.

The office market 

Since the pandemic, demand has strengthened for high-quality office premises in attractive locations and weakened for the opposite. Rental rates for prime offices are therefore in an upward trend, despite overall vacancies having increased in recent years.

Warsaw and Poznan are Eastnine’s strongest rental markets at the moment, driven by relatively stronger demand and lower new development activity compared to Vilnius and Riga. Office rents in Eastnine’s markets are significantly lower than in Nordic and Western European markets. For example, top rents are almost twice as high in the major German cities compared to corresponding properties in Warsaw, which is a city with over three million inhabitants in the metropolitan area and an office stock of just over six million sq.m. The transaction markets in Eastnine’s region are characterized by fewer domestic buyers and lower liquidity compared to their Western European counterparts. Yield requirements are therefore higher, at levels 6.00 per cent in Warsaw, 6.50 per cent in Vilnius, 6.75 per cent in Riga and 7.50 per cent in Poznan for fully leased high-quality office properties in central locations. 

Rent levels for prime offices	Yield requirements for prime offices
Eastnine’s markets	Eastnine’s markets
Rent levels for prime offices	Yield requirements for prime offices
Nordic, German and Eastnine’s markets, 2024	Nordic, German and Eastnine’s markets, 2024