Overview of the Kaunas Office Outlook 2025 H1
The Kaunas Office Outlook 2025 H1 is a market report produced by Newsec, a leading Nordic‑Baltic advisory and property‑asset‑management firm with over 2 400 employees and €68 billion under management. Newsec’s extensive data‑driven research underpins the analysis, offering a comprehensive view of the office market in Kaunas for the first half of 2025. The report is part of Newsec’s broader series of property outlooks covering the Baltic region.
Macro Economic Context
Lithuania’s economy is projected to grow by 2.8 % in 2025, supported by a 7 % unemployment rate and wage growth of 8.4 %. Inflation is expected to moderate to 3.3 % (HICP). These macro indicators create a favourable environment for office demand, although the local market still lags behind regional peers.
Current Office Stock and Vacancy
The total office stock in Kaunas stands at approximately 277 300 sqm, with a vacancy rate of 2.3 % in H1 2025. No new office space was delivered during the first half of the year, keeping modern stock unchanged. The tight vacancy reflects limited supply and strong occupier activity, resulting in upward pressure on rents.
Supply Outlook and New Deliveries
Around 23 600 sqm of new office space is slated for delivery in the second half of 2025, led by the 10 600 sqm Hermanas building (Urban Live). This will be the most significant annual addition since 2020 and is expected to shift the market balance, providing much‑needed high‑quality, ESG‑compliant space.
Rental Trends and Class Segmentation
A‑class office rents have risen to €16‑18 per sqm per month, while B‑class rents range between €8‑15 per sqm per month, reflecting the scarcity of premium space. The low vacancy and limited immediate availability give landlords strong negotiating power, with rents likely to continue climbing as new supply enters the market.
Pre‑leasing Activity and Tenant Behaviour
Pre‑leasing for under‑construction projects remains below expectations in H1 2025. Tenants are cautious, preferring renewals over relocations due to the constrained supply. However, the upcoming delivery pipeline is expected to boost pre‑leasing activity in H2, as developers seek anchor tenants for the new stock.
Sustainability and ESG Considerations
Newsec highlights that new developments are increasingly required to meet sustainability, community, and flexibility standards. Projects that integrate ESG principles are gaining traction, aligning with broader European trends towards greener, more resilient office environments.
Key Quantitative Highlights
- GDP growth 2025: +2.8 %
- Unemployment: 7 %
- Wage growth: +8.4 %
- HICP: +3.3 %
- Total office stock: 277 300 sqm (existing)
- New supply H2 2025: 23 600 sqm (including Hermanas)
- Vacancy rate H1 2025: 2.3 %
- A‑class rent: €16‑18 / sqm / month
- B‑class rent: €8‑15 / sqm / month
Contact and Further Information
For detailed data, enquiries can be directed to Newsec’s regional contacts in Lithuania, Latvia, Estonia and the wider Baltic network. The report underscores Kaunas’s transition towards a more balanced office market, driven by upcoming supply and sustained economic growth, while emphasizing the importance of sustainable, high‑quality office space for pan‑European investors and tenants.