Favorte continues construction on Tallinn’s largest modern business park 

According to Liina Tettermann, Sales Manager at Favorte, companies have adjusted to the economic sentiment at the beginning of the year, with some already taking action.
"Unstable economic conditions have become the new normal. Small and medium-sized enterprises that have successfully navigated these challenges are now moving towards signing agreements after extensive negotiations. At Favorte, we have leased out an additional 2,400 square meters of business space since the beginning of the year," Tettermann added.

"Now is a good time to lease from the tenant's perspective – the selection of available spaces has increased, and prices are more competitive compared to a couple of years ago when the stock-office segment had a historically low vacancy rate of just 2.7%," said the Sales Manager.

"Additionally, based on our 66,900 m² lease portfolio, we can see that the ancillary costs of modern business spaces are becoming more favorable for tenants over time. In older warehouse buildings, monthly utility costs can reach as high as €4–6 per square meter, whereas the 2024 average for Favorte Stock’s lease portfolio was €1.6 per m² per month, setting a new record for us," Tettermann explained.

The tenant profile of Tähetorni Tehnopark is increasingly characterized by the rapidly growing e-commerce sector. Mäeküla 9 commercial building, completed in December, hosts Motley Denim Europe OÜ among others. The company, originally from the Nordics, specialises in the production and sale of plus-size men's clothing.

"All our products are shipped from Tähetorni Tehnopark to customers across Europe. The logistically favorable location on the outskirts of Tallinn and our new 1,700-square-meter warehouse space allows us to expand into new market segments. Our goal for 2025 is to launch a women's clothing line," said Motley Denim CEO Henrik Öhlund, outlining the company's future plans.

The Härgmäe 20 business building is being constructed by Mitt&Perlebach, whose founder and co-owner, Kristjan Mitt confirmed that work is proceeding smoothly and according to plan. "We are committed to contributing to sustainable projects, and Tähetorni Tehnopark is a great example. The buildings feature a 600 kW solar park on the rooftops, covering around half of the annual electricity consumption of the tenants," Mitt stated.

Tähetorni Tehnopark is the largest modern business park in Tallinn, with a total development area of 60,000 m², half of which is already completed. In addition to the Härgmäe 20 property, building permits have been issued for three more warehouse buildings. To date, over 30 companies have signed leases within the business park. Favorte is investing a total of €55 million in the project. More information about the development is available at  https://tahetornitehnopark.ee/