As memories of the pandemic recede, more news surfaces about employees being called back to the office. Among the high-profile employers already making this move are industry leaders like JPMorgan Chase, Amazon, Blackrock, Disney, and many more. This list could also include several companies based in Lithuania. New business centers designed to meet these needs are being developed, including "Yellowstone," which is currently rising in the capital.
Offices are no longer just competing with each other, but with employees' homes.
"Though the coronavirus pandemic that raged for several years may seem like a distant memory, its impact on work culture will likely be felt for many years to come. In a short period, employees experimented with and embraced new work habits, setting expectations for employers. These employers, in their pursuit of the best talent in the market, are attentive and share their requirements with real estate developers. This collaboration of interests leads to the creation of workplaces that satisfy everyone involved," explains Sandra Jovaišaitė, head of the Colliers Baltics commercial real estate brokerage department in Lithuania.
According to the expert, employee needs can now confidently be placed at the forefront of considerations when selecting an office for rent. Recently, a good and high-quality office is not just competing with other offices in the city, but with an employee's home, which caters to individual needs. As a result, employees who are invited back to the office seek spaces that are functional for concentration and work, as well as comfortable for relaxation and leisure.
"What was important before the pandemic remains critical today—the need for companies to have an office that serves a representative function, situated in a prime city location, with aesthetically pleasing common areas and well-organized access. Additionally, a developed trade and service infrastructure offers a significant advantage," says S. Jovaišaitė.
In addition, the office must be economical and environmentally friendly. The real estate expert points out that in new business centers, features such as high-quality engineering systems, which allow employees to enjoy fresh air and maintain comfortable indoor temperatures throughout the year, as well as the building's environmental sustainability and its certified status, have become essential.
Limited supply is enriched by implementing Professor R. Palekas's vision.
According to the real estate consulting firm "Colliers Baltics," this year will see the Vilnius office market expand by 32,000 square meters. This represents the smallest annual change in supply in ten years. The vacancy rate for Class A offices will be approximately 5-5.5 percent, and for Class B1 around 8-8.5 percent. These are the lowest figures across the Baltic countries, indicating limited options for business newcomers in Lithuania's capital, especially those prioritizing higher employee welfare.
One of the newest commercial real estate developments in the capital, augmenting the Vilnius office market this year, is the Class A business center "Yellowstone". It is strategically located at the intersection of the Old Town and New Town, close to Gediminas Avenue. The construction has reached its full height, and work on the facade decoration and interior installations is currently underway. An investment of 25 million euros has been committed to the development of this project.
The nine-story, 9,800 square meter business center "Yellowstone" is being developed based on the concept by Professor Roland Palekas, in collaboration with his namesake architectural studio and the design company "Planas B." The spaces are thoughtfully designed to be flexible, allowing them to be tailored to the unique needs and specifics of each business. Tenants have the option to configure both open-plan areas and more private, enclosed spaces, and can even install a rooftop terrace offering spectacular views of the city center or the lush Žvėrynas. The project's common areas will be decorated with works by Lithuanian artists.
"The project was designed to blend harmoniously into the urban landscape, and to be inspired by its visit. We aim to provide the kind of work spaces to which the employees themselves would like to return", says Agnius Tamošaitis, partner of the mixed investment company "Equite" managing the project and manager of investments in real estate.
According to him, the business center will open its doors already in the summer, with several fully equipped premises, so companies that need premises in the short term can plan their move already in July. Due to the specific planning and flexibility of the premises, it will be convenient to create both larger and smaller businesses here, who want to have both private kitchens and meeting rooms in the premises.
For the comfort of employees, shallow rooms with spacious opening windows to ensure the flow of natural light have been designed on each floor of the building, and the most advanced engineering systems have been installed so that the air in the rooms is always fresh and refreshing.
Part of the revitalized prestigious business district of Vilnius
Yellowstone is set to open this summer as one of the first markers of a significant revitalization in the capital's prestigious Business Triangle. Following the renovation of a 3-hectare area, which seamlessly blends commercial, residential, and public functions, along with restoring links to the Neris River embankment and crafting inviting public spaces, it is poised to foster a vibrant urban district accessible to everyone.
"Following the completion of Yellowstone and the transformation of the nearby Business Triangle, the entire area will emerge as a new point of attraction in Vilnius. We are confident in the potential of this location, which benefits from substantial investments from both private businesses and the city. Soon, we will have a modern, contemporary district worthy of a European capital, where our project will integrate seamlessly," says A. Tamošaitis.
A. Tamošaitis highlights the benefits for Yellowstone tenants, including good access by both personal and public transport, well-developed infrastructure, and a vibrant, green inner square where a café terrace is planned. The building will incorporate renewable energy solutions and modern engineering systems to ensure optimal microclimate control. The project is being implemented in accordance with the international sustainable building standard BREEAM, aiming to achieve a "BREEAM IN USE Excellent" rating.
