Finnish companies seeking large commercial properties to rent are looking to relocate to Estonia. The market in Tallinn offers several benefits, including relatively cheap prices and favorable terms for tenants.
Tallinn
Companies who make the move to Estonia can find rental prices that are at least half of what they would expect to pay in Finland. The Tallinn commercial property market is also attracting investors from Russia.
YIT Ehitus is building a 9,000 square meter office building near Tallinn Passenger Port. The building is called Navigaator and is being developed by local firm Capital Mill.
Marko Kull, of Capital Mill, recently stated that businesses are looking for premises that are “modern, energy-efficient, easily accessible and highly automated.”
Navigaator will be able to accommodate about 20 tenants when it is completed. Since companies are interested in renting at least 1,000 square meters of floor space, the building may end up being let to 10-15 tenants.
YIT has recently developed a second office property in Tallinn. Technopolis is a science park near the Tallinn University of Technology. Capital Mill will buy the 8,300 square meter property, which was completed at the end of 2012. It is almost fully leased.
Juha Ajakainen, a partner in the real estate agency 1Partner, remarked that there is a high demand for modern production facilities and that prices are approximately 50 per cent of Finnish rates.
He also stated that a number of manufacturers prefer to build their premises to suit their specific needs.
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