OREANDA-NEWS. August 13, 2012.
Office Market
Due to summer holiday period most of the decisions are postponed to the autumn. However, according to the information available to Colliers, in the second part of the year several potential larger tenants’ relocation decisions may increase office premises take-up volume by up to 10,000 sqm, reported the press-centre of Colliers. 
 
Retail
Vacancy rate of shopping centers is constantly close to zero, which makes tenants to look for alternative options. Secondary to shopping centers are favored retail premises by streets with high pedestrian flow, good visibility and picture windows. Thanks to growing number of foreign tourists, summer is the best time for Old Town retailers.
 
Warehouse and Industrial
At the end of June a global leader in power and automation technologies ABB AS laid a cornerstone to a new production and office building in Juri near Tallinn with the cost around €13-14 mln. The new building will have 14,000 sqm of space and should be completed by next spring. Together with the new building, ABB occupies 45,000 sqm of premises in Juri.

The news yet again assures Swedish and Finnish logistics and industrial companies’ interest for Estonia as the operating costs (labour, rents, etc) here are by approximately half smaller than in other Scandinavian countries. The issue of Finland losing its attractiveness among local industrial and logistics companies to Estonia has been even raised by Finnish media indicating to continual potential of Estonian warehouse and industrial market.
 
Investment market
Investment is the most active sector currently. During last month were concluded several investment deals, which selling period is dating back to over one year.
At the end of June YIT Ehitus AS and Capital Mill signed an agreement, according to which YIT sells to Capital Mill its 90% ownership of the office building Mehhatroonikum located in the Tallinn Science Park Tehnopol. The building with leasable area of approximately 8,300 sqm is currently under construction and planned to be completed in August 2012.

Another transaction, which is after VGP Logistic Park deal the second largest direct real estate investment transaction in Estonia this year, was concluded with Shopping Centre Mustikas. The shopping centre with leasable area of 21,500 sqm was acquired by EfTEN Real Estate Fund with the price of EUR21.5 mln.