The largest warehouse deal in Latvia in 2025 never appeared in the Land Register. JYSK - an international Danish furniture and home goods retail chain - acquired a 42,000 sqm logistics centre in Dreiliņi for approximately EUR 34 million through an SPV transaction in July 2025. In this structure, the company that owns the property changes hands, not the building itself - a standard approach for institutional-grade logistics transactions across Europe. Because the real estate stays with the same legal entity, the deal does not appear in Latvia's land register. We spotted the deal amount in our analysis of VGP's European corporate reporting.
Two more deals followed the same structure. DEPO DIY bought back its Krasta iela store for EUR 24.4 million in Q3 2025 - the most widely covered deal of the year. And in March 2026, EfTEN sold the DSV logistics centre on Krustpils iela to ROLANDS S for EUR 9 million - a local industrial park owner with a facility 500 metres away, expanding its footprint in Šķirotava.
October 2026 update
The market has turned since this report was first published in March 2026. The latest figures:
- Riga vacancy at a new high. Colliers' Q3 2026 snapshot puts Riga warehouse vacancy at 5.9%, up from 4.5% in Q1 and 5.3% in Q2. Its prime rent benchmark is EUR 4.2–5.5/sqm/month, and rents have started to soften.
- Incentives are back. Landlords are offering rent-free periods and fit-out contributions; by mid-2026 two to four months rent-free had become standard, according to Colliers.
- Record investment. Latvian real estate investment reached about EUR 316M in 2025, a record, and almost EUR 320M in the first nine months of 2026 alone (Colliers). Prime industrial yields: Latvia 7.25%, Estonia 7.5%, Lithuania 7.0%.
- Another tenant buy-back. In April 2026 VGP sold VGP Park Tīraine to its tenant Eugesta for EUR 25.3M, after JYSK and DEPO bought their buildings in 2025.
- New supply delivered. Piche commissioned Lidostas Parks 5 (30,000 sqm, 90% let) in February 2026, and SIRIN completed the second phase of SIRIN Park Airport (30,000 sqm, EUR 19.5M) in September.
- Rates went up, not down. The ECB raised its deposit rate in June and September 2026, to 2.50%; 3-month EURIBOR was about 2.64% in mid-October. Latvian HICP inflation was 3.0% in September.
| City | Prime rent, EUR/sqm/month | Vacancy, Q3 2026 |
|---|---|---|
| Riga | 4.2–5.5 | 5.9% |
| Tallinn | 4.9–6.7 | 5.4% |
| Vilnius | 4.5–5.5 | 4.9% |
For tenants this means more room to negotiate on rent-free periods, fit-out and indexation caps than in 2024–2025. See 7 clauses to negotiate and the current market data.
Market Size
The three Baltic states hold approximately 3.5 million sqm of modern warehouse stock. Lithuania leads with ~2.1 million sqm across Vilnius (~1 million sqm), Kaunas (~742,000 sqm), and Klaipėda (~377,500 sqm). Vilnius vacancy rose from 5% to nearly 7% in H1 2025 - the highest since 2011 - as new supply outpaced absorption.
Estonia's Tallinn region exceeds 1.3 million sqm - the largest concentration in any single Baltic capital. In early 2025, 148,500 sqm was under construction across 28 projects. Nordic near-shoring continues to drive 3PL demand.
Latvia's Riga region stands at approximately 1.24 million sqm. Notable 2025 completions include DEPO's 67,000 sqm logistics centre (second-largest in Latvia), airBaltic's Baltic Cargo Hub (6,895 sqm), and Gemoss Logistics' Mūkusalas iela facility (7,251 sqm). Latvia's three largest logistics centres: Rimi (94,000 sqm), DEPO (67,000 sqm), Lidl (51,000 sqm).
Over 136,500 sqm remains under construction, but only one-third is speculative.
Investment Climate
Baltic real estate investment totalled EUR 830 million in 2024 - the lowest in a decade. Around 60% was generated in Estonia. Industrial and logistics remained resilient, increasingly where the smart money moved.
Foreign investors have been net sellers. Baltic-based funds - EfTEN Capital, East Capital Real Estate - are the most active acquirers. End-user acquisitions are the defining trend: both JYSK and DEPO bought properties they already occupied. These are operational decisions, not speculative bets.
Latvia's own volume reached a record of about EUR 316M in 2025 and almost EUR 320M in the first nine months of 2026 (Colliers). Financing became more expensive during 2026: the ECB raised its deposit rate in June and September to 2.50%, and 3-month EURIBOR was about 2.64% in mid-October.
Notable transactions (2023–2026)
- East Capital Real Estate Fund IV - Rimi Baltic DC (94,000 sqm, ~EUR 89M) and J13 Logistics Park, Tallinn (40,000 sqm, EUR 42M) in 2023.
- EfTEN Real Estate Fund 4 - SBA logistics site near Klaipėda Sea Port, EUR 28.6M.
- JYSK - VGP Park Riga (42,000 sqm), SPV transfer July 2025, ~EUR 34M. Never in land register, price never disclosed locally. Largest industrial deal in Latvia 2025.
- DEPO DIY - Krasta iela 36, Riga, EUR 24.4M, Q3 2025. Second-largest deal of 2025.
- EfTEN → ROLANDS S - DSV logistics centre, Krustpils iela 31 (~33,000 sqm), EUR 9.0M, March 2026. Neighbor acquisition - ROLANDS S owns a park 500m away. Share deal, not in land register.
- VGP → Eugesta - VGP Park Tīraine, EUR 25.3M, April 2026. The tenant bought the park it occupies.
Biggest Developers
SIRIN Development (Lithuania)
Largest Baltic logistics developer: 600,000+ sqm across all three countries. Key asset: Rumbula Logistics Park (90,000 sqm, fully leased). Plans EUR 70–100M in Baltic investment for 2025–2026. SIRIN Park Dreiliņi - EUR 40M, 45,000 sqm, BREEAM Excellent target; SIRIN announced construction for April 2026, with the first buildings (~27,000 sqm) expected in early 2027 and 30% of the first building pre-let. The second phase of SIRIN Park Airport (30,000 sqm, EUR 19.5M) was completed in September 2026.
Piche (Latvia)
Investing EUR 130 million across six industrial parks totalling 145,000+ sqm. Lidostas Parks near Riga Airport (23,240 sqm, A-class energy) is fully operational, and Lidostas Parks 5 (30,000 sqm) was commissioned in February 2026, 90% let. Mārupes Parks (42,000 sqm) completed. Further EUR 50M and 100,000 sqm planned in Mārupe over three years. Also planning Next Park Dreiliņi (35,000 sqm, still in planning in autumn 2026) and parks in Valdlauči and Dreiliņi (including a 15,000 sqm "stock office" concept).
VGP (Belgium)
Built the JYSK logistics centre (42,000 sqm, BREEAM Very Good) in Dreiliņi, completed 2023. Sold to JYSK via SPV in 2025 for ~EUR 34M. Also completed VGP Park Tīraine in 2023 and sold it to its tenant Eugesta for EUR 25.3M in April 2026. VGP Park Dreiliņi is planned at ~32,000 sqm in three buildings; 16,000 sqm was under construction in May 2026.
East Capital Real Estate (Sweden)
Fund IV holds J13 Logistics Park (Tallinn, EUR 42M) and Rimi Baltic DC (Riga, ~EUR 89M). Developing Park Rae near Tallinn - about 130,000 sqm, Estonia's largest planned logistics development. Nordecon signed the EUR 15.8M contract for the first building (~32,000 sqm) in February 2026; tenants are due to move in during the first half of 2027.
Riga Market Focus
Riga's modern warehouse stock is 1.2–1.4 million sqm. Colliers puts prime rents at EUR 4.2–5.5/sqm/month and vacancy at 5.9% in Q3 2026, up from 4.5% at the start of the year, as new supply arrives faster than tenants take it up.
Dreiliņi is where development is concentrated. VGP plans about 32,000 sqm and had 16,000 sqm under construction in May 2026. SIRIN announced that construction of its 45,000 sqm park would start in April 2026, with the first ~27,000 sqm due in early 2027. Piche's 35,000 sqm Next Park was still in planning in autumn 2026, after the Riga Building Council reviewed it in March. Together about 112,000 sqm is planned in one neighbourhood, more than Latvia has seen in one place before.
Mārupe/Airport area continues expanding around Piche's parks. Rumbula corridor remains anchored by SIRIN's 90,000 sqm park. Kundziņsala/Riga Port is undergoing transformation with EUR 500M in planned investment.
Trends to Watch
1. The Renewal Cycle Accelerates.
Warehouses built 15–25 years ago are losing tenants to modern stock. Higher insurance costs, sustainability requirements, and tenant expectations are accelerating the shift.
2. Dreiliņi Becomes Riga's Logistics Centre of Gravity.
Three developers and about 112,000 sqm planned in one neighbourhood. As it is delivered, it will set the rent benchmark for the region.
3. Defence Enters the Market.
Defence-related entities are leasing logistics space across the Baltics - a new demand segment that did not exist before 2024.
4. Tenants Become Owners, Neighbors Consolidate.
JYSK (EUR 34M), Eugesta (EUR 25.3M), DEPO (EUR 24.4M), ROLANDS S (EUR 9M) - three tenant buy-backs and one corridor consolidation. Expect more as operators lock in positions.
5. Interest Rate Uncertainty.
The ECB raised rates twice in 2026, to a 2.50% deposit rate, and 3-month EURIBOR is around 2.6%. Latvian inflation was 3.0% in September, which feeds straight into indexed rents. That makes the own-versus-lease calculation, and indexation caps, more relevant.
6. Sustainability as Baseline.
BREEAM, solar, EV charging are becoming standard expectations, not differentiators.
7. Tenants Compare Total Cost, Not Just Rent.
More occupiers factor in energy, service charges, and usable capacity. The market is slowly learning to price quality.
What This Means for Tenants
Vacancy is rising and landlords are offering incentives, which gives tenants more room to negotiate on rent-free periods, fit-out and indexation caps. Well-specified facilities in the best locations still lease quickly. Compare properties on total occupancy cost, not headline rent. Use the cost calculator to model the real economics.
Sources: Colliers Baltic Property Snapshots (Q1–Q4 2025), Ober-Haus Baltic Market Reports 2024–2025, EfTEN investor announcements (Feb–Mar 2026), VGP Half Year Results 2025 & November 2025 Trading Update, ECB Macroeconomic Projections March 2026, company press releases (SIRIN, Piche, East Capital, VGP, Gemoss), Latvia Construction Annual Awards 2025, Baltic Times, LIAA. October 2026 update: Colliers Baltic Property Snapshot Q2 and Q3 2026, Colliers real estate market overview Q3 2026, VGP trading update (7 May 2026), SIRIN press releases (March and September 2026), Piche, East Capital and Nordecon announcements (February 2026), ECB monetary policy decisions (June and September 2026), Eurostat HICP release (16 October 2026).