The market is in an interesting situation where there is strong demand for new warehouse space, but limited supply. Although new warehouse and production spaces are in the pipeline, they do not meet market needs.

In the following overview, I highlight the main warehouse and production areas around Tallinn and provide an overview of what is currently available and what is being planned.

Tartu Road

The prices of commercial and industrial land have seen the fastest jump in the past decade over the last year. In 2019, plots along Tartu Road were priced at around €45/m² on average; today, land cannot be purchased for under €55/m².

The direction from Tallinn toward Jüri along Tartu Road is the most in demand, as the city center is only minutes away by car and the area is centrally located for transit.

Rental prices have increased due to rising construction and land costs. In a new warehouse building, spaces can be rented starting from €5.25–5.90/m² for warehouse space, and €8–8.60/m² for office space. Two projects are coming to the Tartu Road area at these prices, with building areas of 10,000 m² and 15,000 m² respectively. In general, prices in new warehouse complexes are around €6.50/m².

Tabasalu

This area is less in demand compared to others. Tabasalu suits local entrepreneurs for whom major truck routes out of the city are not critical. Demand for warehouse and production spaces in this area is low.

Currently, commercial land in Tabasalu’s tech park can be bought for €20/m².

Harku

The Paldiski Road direction is the hottest up to the Harku junction. Driving up Harku hill, on the right side lies the Härgmäe development area, where new rental spaces are continuously being built, with an average price of €6.50/m².

On the opposite side of this area, across Paldiski Road, a future building with 5,000 m² of gross area is awaiting tenants, with a rental price around €6.8/m².

Another new warehouse and showroom building is also being developed on Allika Road, where rental prices start at €5.8/m².

Keila

Keila is divided in two by a railway line. The Paldiski Road direction has seen rapid commercial development in recent years. For example, large stores have been built and several showroom and warehouse buildings have been developed on the Harju KEK site, where another warehouse complex is currently under construction.

At present, a new stock-office type building is being built in Keila at a highly visible location at Uus-Paldiski 5. The building is called Arberi Business House and offers units ranging from 205 to 820 m².

Saue-Laagri-Tänassilma

Saue municipality is currently one of the fastest developing areas in terms of commercial real estate. The Saue town center is evolving into a true hub, gradually pushing older production spaces and hangars into designated industrial parks.

Saue Technopark has seen rapid growth – www.sauetehnopark.ee. A new production building for small manufacturers is under construction there, offering rental units ranging from 118 to 550 m². Rental rates range from €6.5 to €8/m².

The same park also offers plots for sale at €49/m², with all utility connections included.

Heading toward Tallinn, we reach the Gate of Tallinn area, which is under development and where plots are being sold at prices starting from €55/m² and above. On the opposite side of Pärnu Road is R-park, where infrastructure has not yet been established, though some plots have already been sold. New stock-office units ranging from 25 to 450 m² with rental prices around €7.5/m² are planned for this park.

In Tänassilma, rental prices for large warehouses (1,000 m² and up) are around €5–5.5/m². No significant new warehouse developments are expected in the near future. However, it is still possible to purchase the last available plots on Kokasuuna põik for €55/m², including full utility connections. On the same street, construction has already begun on a new stock-office building, with current rental offers at €6.5/m². Rental rates and land prices are expected to rise further due to demand outpacing supply.

In this area, there is also strong demand for very large agricultural plots without detailed plans, especially those located between Tänassilma and the ring road. One such transaction took place a few months ago for a 22-hectare property priced at approximately €2.4 million, which translates to around €10.9 per square meter.

In Saku Municipality, near the ring road, there is still a 18,000 m² plot with a valid detailed plan for sale at €30/m².

Around IKEA

The area where Kiili and Rae municipalities meet has become extremely hot—especially since IKEA construction began. IKEA has become a sort of magical keyword, significantly boosting the entire residential development along Vaela Road. From the ring road to Kiili, there’s rapid construction of new detached houses, townhouses, and apartment buildings. A spa, sports center, new school, and kindergarten are also planned for the area.

Commercial and industrial developments are concentrated mainly along the ring road. The Ringtee Business Park is expanding rapidly, offering land plots at €55/m², or the option to have a rental-purpose production or warehouse building constructed. Of the entire 22-hectare development area, only five plots remain available.

Detailed planning is also underway in the same neighborhood for nearly 100,000 m² of future warehouse and production space.

Rae Municipality

As previously mentioned, the Tartu Road corridor is the most in-demand area overall, and Rae municipality is heavily developing in that direction. Transaction prices for plots in Mõigu Technopark and Peetri up to Assaku have ranged between €74–130/m². From Assaku to Jüri, deals have been closed in the €40–55/m² range. Supply is virtually non-existent, but demand remains strong.

Rental prices in new warehouse/production buildings in Rae Municipality are:

€5.25–6.5/m² for warehouse space
€8–8.6/m² for office space
Construction is about to begin on three buildings:

Two in Rae Technopark
One at Rukki tee 11
The leasable areas in these developments range from 500 to 10,000 m². Two of them will be logistics centers, and one will be a ground-level loading warehouse/production complex.
Värskele turuinfole tuginedes on Rae vallas ladude vakantsus 1,68 %. On selge, et piirkond vajab niisuguseid pindu juurde.

Väo junction

This area will see the development of six stock-office type buildings with floor areas ranging from 1,200 to 5,400 m². Only rental spaces are available, starting from 540 m², with rental prices ranging between €6.5–7.5/m².

Nehatu and Loo

Plot prices in this area start from €55/m², and rental prices for production buildings begin at €5.25/m², with availability starting April 2022. There is very little supply in this region, and demand is primarily for production space.

Vana-Narva Road

Vana-Narva Road

This is an area experiencing rapid and intense growth. Just a few years ago, land transactions were closed at €15–27/m², but by 2021 the prices had climbed to €38–48/m². There is strong demand, particularly for plots with larger building rights.

Rental prices for new buildings range between €5.8–7.5/m². Two speculative stock-office projects and one logistics building are under development, all expected to be completed in 2022–2023.

The entire Vana-Narva Road will undergo reconstruction in 2022—including turn lanes, bike paths, and an upgrade of underground utilities. This long-needed improvement will significantly enhance infrastructure.

The area is well-connected, with 62 public transport stops per day, offering convenient access to Tallinn, making it particularly attractive for producers from a workforce logistics perspective. Its proximity to Muuga Port and the ring road adds further value.

Rail Baltica

Rail Baltica will have a major impact on many of the above-mentioned regions, creating new development areas. In addition, the new business districts in Maardu and Jõelähtme municipality will also get a boost.