Empty state office buildings cost Estonia thousands of euros monthly

Empty state office buildings cost Estonia thousands of euros monthly

State Real Estate AS's portfolio still contains tens of thousands of square metres of unused office space, whose maintenance consumes significant sums. In most cases, the vacancy is not due to lack of interest but rather ongoing development or renovation projects and sales processes. Although the state has consistently reduced its office space portfolio in recent years, empty premises continue to drain the budget.

Economy

Estonia's state budget spends thousands of euros monthly on office buildings sitting vacant. State Real Estate AS (RKAS), which manages the state's real estate portfolio, currently owns tens of thousands of square metres of unused office space across Estonia.

Why are the premises vacant?

There are multiple reasons why these spaces remain unused. In most cases, the issue is not a lack of interest; some buildings await renovation, others are in sales processes, and still others are tied to ongoing development projects. Nevertheless, each empty square metre comes with costs: heating, maintenance, and other mandatory expenses.

The state has reduced its space portfolio

In recent years, the state has actively worked to reduce the total volume of its office space. Through consolidation, many government agencies have moved to shared offices or disposed of excess space. However, maintaining completely vacant buildings continues to represent a significant burden on taxpayers.

Solutions and outlook

RKAS is actively seeking ways to put unused space to work, whether through sales, lease arrangements, or repurposing for other uses. Experts emphasise that until concrete decisions are made, vacant buildings will remain a drain on the state budget. The long-term goal is to align the state's office real estate portfolio with actual needs, avoiding unnecessary expenditures.

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