The largest warehouse segment deal in Latvia last year 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 this March, 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.
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.
2025–2026 volume is projected near EUR 1 billion, contingent on financing conditions. EURIBOR sits at 1.9–2.1%, but ECB projects 2.6% inflation for 2026 with upside risk from geopolitical shocks - a scenario the market has not yet priced in.
Notable transactions (2023–2025)
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 breaks ground April 2026 - EUR 40M, 45,000 sqm, BREEAM Excellent target, first buildings (~27,000 sqm) expected early 2027.
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. 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) 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 Tīraines in 2023. Under construction: VGP Park Dreiliņi - three buildings totalling ~32,000 sqm, completion end of 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 - 140,000 sqm on 30 hectares, Estonia's largest planned logistics development. First building construction began February 2026.
Riga Market Focus
Riga's modern warehouse stock is 1.2–1.4 million sqm and growing faster than at any point in history. Asking rents are EUR 5.30 - 5.50/sqm/month.
Dreiliņi is where the action is concentrated: VGP (32,000 sqm) is in active construction, SIRIN (45,000 sqm) breaks ground in April 2026, and Piche (35,000 sqm) has a ready project awaiting a building permit and plans to start in 2026. Together 112,000 sqm in one neighbourhood. Nothing like this has happened in Latvia 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, 112,000 sqm, one neighbourhood, one year. This will push rental cost levels up.
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), DEPO (EUR 24.4M), ROLANDS S (EUR 9M) - two tenant buy-backs and one corridor consolidation. Expect more as operators lock in positions.
5. Interest Rate Uncertainty.
EURIBOR stable at ~2% but with upside risk. ECB projects 2.6% inflation for 2026. This makes the own-versus-lease calculation even 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
More supply is coming - especially in Dreiliņi - but well-specified facilities still lease quickly. Compare properties on total occupancy cost, not headline rent. Use the cost calculator at rentful.eu/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.