New additions to the stock during 2016 were 106,800 sq m in total, with more than half being located in pan-regional cities of the Baltic countries.
In Tallinn prime shopping rents have decreased and this tendency may continue during 2017. In Riga and Vilnius prime rents remained stable.
The vacancy rates at prime shopping centres across the Baltics have remained stable during 2016. In Tallinn the retail market is turning more tenant friendly due to increasing supply in the market.
Capital cities are still the main investment targets in Baltic countries with the most expensive yet liquid assets, thus yields for properties in pan-regional cities are higher.
Existing brands maintained expansion in the Baltics, but also new brands actively continued entering the Baltics during H2 2016 by opening new shops in Lithuania: NYX (US), Zara Home (Spain) and BoConcept (Denmark); in Latvia: Dormeo Home (Italy), Billieblush (France), COS (Sweden), Phase 8 (UK), NYX (US); in Estonia: Molly Bracken (France), Zara Home (Spain). We will see new names during 2017 as well.