The first tenants have chosen the newly constructed Sand Offices business centre at the intersection of Žalgirio and Linkmenų streets in the capital. These tenants include the online financing platform “CapitalBox,” the restaurant “Laurus,” and the household appliance studio “Prenta Studio.” The construction work on the business center is scheduled to be completed by the end of this year, and tenants will be able to move in by January 2025.
“With the first lease agreements, we have rented out about 1200 square meters of the building’s area. We also continue to see significant market interest from other potential tenants. The location, aesthetics, convenience, and sustainability of ‘Sand Offices’ certainly contribute to this interest. Therefore, the contracts for future tenants are already in the coordination stages,” says Andrius Barštys, Chairman of the Board of “Capitalica Asset Management,” the SBA Group’s investment management company developing the “Sand Offices” business center construction project.
At the beginning of June, “Capitalica Asset Management” company “Capitalica Z114 Real Estate Fund” also issued the second tranche worth 9.1 million euros, intended for the development of the “Sand Offices” project. Demand exceeded supply three times over.
“Our implemented projects are favorably evaluated by both tenants and investors. We see that the market trusts us. During the last bond issue of ‘Sand Offices,’ we planned to increase it to 6 million euros, but due to the very high interest from investors, we decided to expand it to 9.1 million. The issue was subscribed by 172 investors from the three Baltic countries,” says Mindaugas Liaudanskas, CEO of “Capitalica Asset Management.”
What Attracts Modern Tenants
Indrė Juščė, Head of Office Solutions at the real estate consultancy company “Newsec,” echoes the developers of the “Sand Offices” project, noting that the most important aspects for tenants when choosing a new office remain the location, architecture, and the business center’s innovativeness and environmental friendliness.
“There are several secrets to the success of the ‘Sand Offices’ business center. First, it is located in a strategically convenient place – near the city center and close to a residential area. Second, the building is being constructed and equipped according to the international ‘BREEAM Excellent New Construction’ certification standards. This means it is sustainable, environmentally friendly, and durable. Third, the business center is being built using a prefabricated three-layer reinforced concrete system with a fully finished facade. As a result, construction work is progressing very quickly, and tenants have the opportunity to adapt the chosen space according to their needs,” says I. Juščė.
According to the expert, the chosen construction method for “Sand Offices” is a main distinguishing feature in Vilnius’ commercial real estate market: “Construction using prefabricated reinforced concrete is still new in Lithuania. The market is increasingly appreciating its advantages. Fewer columns in the internal spaces of the building ensure future tenants the opportunity to use the space most efficiently. There are no unused areas that would still need to be paid for.”
The new business center in Vilnius began construction in January 2024. The work is planned to be completed by December of the same year. A total of 13.1 million euros has already been allocated for the construction of “Sand Offices,” with the planned investment reaching approximately 25 million euros.
