But what can companies do in cities like Kaunas, where the demand for modern workspaces is clearly rising while the supply of new offices remains limited? Experts from SBA Urban, the company developing the Hermanas business centre, and experts from Newsec note that it is precisely this imbalance that is prompting companies to make decisions about their workspaces much earlier and far more responsibly.
Delaying the decision – limited options
According to Martynas Babilas, Head of Corporate Real Estate in the Balticsat the international real estate services group Newsec, the Kaunas market has been experiencing a shortage of new office space for some time, with vacancy rates remaining stable at 2–3% since 2022. For this reason, larger companies considering relocation or expansion should begin planning their actions much earlier.
Lina Mačiulė – Head of Office Leasing at SBA Urban in Kaunas, which is developing the Hermanas business centre in Nemunaičiai, confirms that the process of changing offices is not short – it often takes six to twelve months from the first discussions to collecting the keys.
Mačiulė emphasises:
While the office interior concept itself can be prepared in just 30 days, all legal, approval and fit-out processes take considerably longer. Larger companies need to plan even further ahead. If the current lease is due to expire soon, delaying decisions can result in limited options.
Higher quality standards and 5–10-year leases
A representative from Newsec notes that 2026 is set to become a ‘tenant's market’ in Kaunas. According to him, the shortage of new, high-quality office space and the increasing return of employees to physical workplaces are setting new rules.
Babilas:
Tenants are returning to long-term planning and are now willing to sign standard 5–10-year leases. At the same time, they are raising the bar for quality: sustainability, energy efficiency and a strategic city location are no longer just advantages; they are now basic requirements. Businesses also value the surrounding environment, the developer’s reliability, and the quality and continuity of the property management services provided.
From builder to consultant: businesses no longer want to worry about office design
Experts note that not only is the office market changing, but the role of the landlord is changing as well. Mačiulė states that today’s businesses expect much more from real estate developers than just the transfer of space.
Mačiulė concludes:
When communicating with potential tenants of the Hermanas business centre, we see that businesses are increasingly unwilling to take care of the interior design of their workspaces or the technical maintenance of the premises. Therefore, it is important for them that the real estate developer becomes a partner and consultant who can offer solutions from A to Z: from the office concept to an ergonomically equipped, work-ready space. In this case, all the business has to do is pick up the keys, grab their computers and focus solely on their success.
According to her, these are the solutions applied at the Hermanas business centre. Here, the team handles all set-up concerns—from the interior concept and plan, presented in just 30 days, to the actual office set-up and furniture.