Andrius Veršinskas, Head of the Business Division of Kaunas City Tourism Business and Investment Development Agency Kaunas IN, says that investors are interested in Kaunas for a reason. There is a noticeable increase in the quality of life, and the convenient location attracts the attention of entrepreneurs even more.
A. Veršinskas states: „One of the advantages of Kaunas is the abundance of talent and specialists. We have many higher education institutions with about 40,000 students. Of these, 60% acquire skills in science, technology, engineering and mathematics – the sectors that are growing fastest globally. Investors also highlight the city's attractiveness – its convenient location and transport links. Kaunas' potential certainly looks promising and offers opportunities for business growth and development“.
Businesses in various sectors are emerging
Over the last 5–7 years, several international business units have been established in Kaunas, which have increased the number of additional jobs and helped create the image of Kaunas as a business-friendly city.
A. Veršinskas continues: „We observe that most investments in Kaunas have been made by engineering, manufacturing, and electronics companies, as well as IT firms and business service centres. Additionally, we see an encouraging trend – even manufacturing and engineering companies that initially chose Kaunas for their factories are now expanding their operations here by adding new functions, such as service provision“.
Andrius Mikalauskas, Director of SBA group company Urban LIVE, agrees, adding that foreign investors' interest in Kaunas, which has been growing rapidly until 2022, will continue to grow.
A. Mikalauskas elaborates: „We must prepare for businesses coming to Kaunas and Lithuania. Over the past years, we have seen a lot of interest from investors in Kaunas, but the development has stagnated due to a lack of office space. A larger supply of high-quality Class A offices, improved city infrastructure and attractive lease conditions can create additional attractiveness for businesses“.
Looking for modern and functional premises
The population of Kaunas City and the region has been expanding for several years. According to the Director of a company developing the Nemunaičiai district“ increasing the supply of office space in the city is essential to create a comfortable place to live and conduct business. Due to the shortage of office spaces, businesses in previous years had to rethink their expansion plans in Kaunas.
A. Mikalauskas emphasises: „The growing population is a highly positive indicator that companies have better prospects for growth and increasing their workforce. However, we observe that some companies, unable to expand within their current buildings and find larger spaces elsewhere, are limiting hiring in Kaunas or encouraging hybrid work more actively“.
However, according to A. Mikalauskas, demand creates supply, and the proper supply increases demand. Therefore, with the SBA group offering the first new business centre in Kaunas in several years—Hermanas, which is growing in the Nemunaičiai district—investors are again turning their attention to the city. A. Mikalauskas states that businesses preparing for expansion seek modern, sustainable premises with unique layout requirements.
A. Mikalauskas: „Open-space layouts are no longer a common choice – companies want to split up work areas. One of the most pressing needs for businesses is meeting rooms and separate spaces for virtual meetings and calls. Hermanas business centre reflects these working principles, with flexible workspaces, comfortable common areas and ergonomic workstations, which ensure an efficient and comfortable working environment that meets the needs of today's investors“.
Appreciates easy accessibility and sustainability
Businesses prioritise employee convenience when choosing premises for their operations. According to A. Mikalauskas, investors pay particular attention to accessibility and external infrastructure.
A. Mikalauskas explains: „Although Kaunas does not experience traffic congestion on the scale of the capital, some companies still prefer not to settle in the city centre, as employees want to avoid even minor traffic jams. Additionally, businesses seek locations with nearby dining options, walking paths, and green spaces. The trend of creating a well-balanced work environment is also reflected in the Nemunaičiai district, which integrates convenient infrastructure with a modern synergy of work and relaxation spaces“.
The Head of the business division at Kaunas IN adds that investors often seek modern office spaces that meet sustainability standards.
A. Veršinskas concludes: „Larger international corporations are subject to sustainability requirements, which is why these companies seek office spaces certified by BREEAM or other sustainability standards. These certifications are not just an added value but a necessary condition“.