Future of Retail 2030

The retail industry is rewriting the laws of physics. Change is coming at an ever faster rate each year and 2030 will be upon us before we know it. Explore the future of retail 2030 insights.


Shortage of offices may weaken the country’s attraction for investors


Vilnius, 30 November 2017 – 2017 is set to be one of the most active in the last ten years for the Lithuanian office market according to many parameters. It is anticipated that by the end of 2017 total office stock in Vilnius should increase by 14 new office premises or 89,400 sq m of new floor space. This figure could have been even higher were it not for the delayed openings of some projects. In 2018, the pace of new supply will slow, yet remain strong by Vilnius’ standards with 5 upcoming projects totalling approximately 40,600 sq m of new floor space. More than half of the new space is going to be A class office premises. The office space in Kaunas is planned to almost double in the next two years from the current 87,600 sq m to 183,900 sq m. At least 65,200 sq m of these new developments are going to be A class offices.

“The stocks of A class offices are expanding slightly more when compared to B class offices, which is welcoming, as currently there is a lack of sufficient available prime office space to meet the needs of the potential occupiers. A further low vacancy level for A class offices in Vilnius could damage investment, as companies consider other locations for quick expansion. The situation in Kaunas is even worse because the city is almost devoid of prime offices. Luckily, the situation in the second largest Lithuanian city is set to change. The first significant A class office projects are to be completed early next year. However, the Kaunas office market is much smaller when compared to Vilnius and its rapid expansion makes it relatively volatile,” Ignas Goštautas, Market Analyst of Lithuania Research and Consultancy at CBRE Baltics comments.

The demand for office space in Vilnius remains high. This year office take-up amounted to more than 68,100 sq m. The majority of office take-up was for the yet to be built offices.

Denis Rein, Senior Consultant of Lithuania Advisory & Transaction Services at CBRE Baltics comments: “The expansion of existing foreign-owned Shared Service Centers and IT companies has been leading the demand growth in both cities. Furthermore, some local companies have moved to newer premises or have been consolidating their scattered employees under a single roof. Additionally, economic growth and a positive outlook have stimulated the hiring process and the numbers of private sector employees in IT, finance, real estate and administrative activities, which are the main office occupiers, went up”.

Rent prices have remained unchanged in the Vilnius office market for over a year now. A class rent rates are currently between 14.0 – 16.5 EUR/sq m/month with 9.0 – 13.5 EUR/sq m/month for Class B office premises. A high level of demand was in line with high supply, which led to a stable vacancy rate of around 5% in Vilnius. In Kaunas, the rent prices vary from 11.0 to 14.5 EUR for A class offices and from 7.0 to 11.0 EUR for B class office premises. The vacancy rate is marginally higher, yet still at a low level of around 7.75%.

“Overall, a few vacancies have helped to keep rent prices at the current level. Yet, the presence of well-known international and local companies is highly appreciated by office developers, consequently the actual rental rates in pre-lease agreements are usually lower. The market is observing increasing new office supply, which creates a downward pressure on the level of asking rents, especially for lower quality offices. The temporary lack of prime offices has been somewhat substituted by available space in Class B projects. However, once prime office facilities become more available, the market should expect some tenant movement in order to upgrade their current office premises,” Ignas Goštautas comments.


About CBRE Baltics

CPB Real Estate Services is part of the CBRE affiliate network in the Baltics. CBRE is the world’s largest commercial real estate services and investment firm (based on 2016 revenue).
The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide.

CBRE Baltics offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting and property sales. Please visit our website at www.cbre.lt and www.cbre.eu.


Ignas Goštautas | Senior Analyst
Lithuania | Research & Consulting
M +370 694 88318

Vineta Vigupe | Director
CBRE Baltics | Research & Consulting
M +371 291 62408

Shopping Centres to reinvent themselves as simply ‘centres’ by 2030

London, 29 November 2017

CBRE Reveals Insights That Will Shape the Retail Sector by 2030

Shopping Centres of the future will become just ‘centres’ and will reinvent themselves as mixed-use destinations. Healthcare, educational and leisure facilities will all become a fundamental part of the shopping centre, according to new insights from the Future of Retail 2030, by the world’s leading real estate services firm, CBRE.

Shopping centre landlords and developers will increasingly start to focus on delivering what consumers want and where they want it and will begin to create integrated communities in which to live, work and shop.

CBRE also foresee that the focus of the traditional fueling stations will change as they become important mini-logistic hubs as sites of fuel retailers will make ideal locations for collection points for online shoppers. Ownership of electric and hydrogen-powered vehicles will also become more common and there will be an increased need for fast-charging points, this is especially true for city dwellers without access to a designated parking space or charging point at home.

Andrew Phipps, Head of UK & EMEA Retail Research at CBRE, commented: “It’s all about change. The roles of the shopping centre, of the fuel station, and of retail itself.  The speed of change may catch some people unexpectedly, as the mindset and requirements of the consumer will evolve more quickly than the industry can adapt.  This means that investors and occupiers need to prepare and be ahead of the changing trends and not wait to adopt them as they happen.”

CBRE’s Future of Retail 2030 examines 40 “futurist” insights on how the world of retail will change in the future – amid changes in consumers ‘lifestyles, urban environments, retail operations, logistics and other trends affecting the industry.

Other insights outlined by CBRE include:

Smartphones will no longer exist but mobile commerce will grow

As the technology of augmented and virtual reality matures there will be a decrease in the overall dependency on smartphones. Instead smaller and wearable gadgets will connect people to the Internet of Things and will provide access to most information and services. Retailers and landlords will need to prepare to provide digitally enabled environments that can leverage consumers’ connectivity. These environments will need to complement, not compete with consumers’ digital access.

Independent stores and F&B operators will be more prevalent

Retail destinations will feature unique offerings curated towards the local catchment. Retail chains will recognise the opportunities that exist and will begin to further develop ‘local’ concepts and brand names to give the appearance of independence.

The in-store check-out desk will be replaced by faster cashless ways to pay

Many retailers have already taken away the physical check-out desk and this is likely to continue as technology will play an increasingly important role as an enabler of retail sales. This will result in a reduction in the number of retail assistants required in this part of the consumer journey.

Fitting rooms will help as opposed to hinder the shopping experience

Technology will allow customers to try on an outfit in a virtual environment and show items already owned in combination with the item being considered to buy. Fitting room technology will also allow the customer to request a different size or style via touchscreen. This will negate the need to leave the fitting room.

The number of wellness establishments will grow

The ‘Instagram generation’ will continue to evolve and will have an even greater ‘need’ to look and feel good. Fitness centres will become commonplaces in malls, urban areas and in new-build residential properties.

Retail will be leisure

As stores become showrooms, in-store leisure elements will dramatically increase. The divide between retail and leisure will become blurred as retail brands address the need for an experience in their store.

To learn more about CBRE’s Future of Retail 2030 go to: www.cbre.com/futureofretail2030