Riga Office Market Becomes Tenant-Driven as Supply Outpaces Demand
According to the latest “Latio” commercial property report for H1 2026, Riga’s office segment is firmly a tenant’s market due to an oversupply of new high-quality space and the rise of hybrid work. Landlords are compelled to offer discounts and flexible solutions to attract clients.
Latvia’s commercial real estate market is showing signs of gradual recovery, with private consumption rising, wages increasing, and lending picking up. However, according to “Latio”’s newly released commercial property market overview for the first half of 2026, the office segment in Riga remains dominated by tenants. Investment activity is still constrained by geopolitical uncertainty and business caution.
A significant volume of new, high-class office space has been commissioned in Riga in recent years, yet there are relatively few large, financially strong tenants seeking extensive top-tier premises. The consolidation of the hybrid work model has further reduced companies’ need for large areas, causing many tenants to simply relocate from older to newer buildings or from larger to smaller spaces.
“Due to the large supply, the market can undoubtedly be called a tenant’s market – there is plenty of supply to choose from with the desired terms,” says Anda Locāne, Head of Property Transactions at “Latio”. Tenants increasingly expect discounts and other perks from owners, while those owners who are willing to adapt spaces to specific tenants and make concessions gain loyal clients in the long run.
Several strategies have emerged in the market: large areas are subdivided into smaller units (premises of 50–130 m² find tenants faster than those of 400–800 m²), buildings are reclassified for medical or educational use to speed up leasing, and hard-to-let spaces are converted into residential units. When large tenants change location, they often leave behind spaces that are difficult to re-let to equivalent tenants.
Rents for A-class offices in the center reach €22/m² per month, while C-class spaces in less sought-after locations can be rented from €5/m² – location and building class can quadruple the price. However, low rent may not save landlords in the long term if the building has high maintenance or utility costs; tenants carefully examine all potential payments.
Currently, investors are offered higher yields not from offices (around 7%) but from industrial and retail properties (around 8%). The office is now competing with warehouses for investor attention. The report covers all commercial property segments, major transactions, and expert assessments.
