Buying Properties in Estonia: Commercial & Mixed-Use Real-Estate Guide
- John Philips
- Jul 22
- 2 min read
Updated: Nov 14
Why Look Beyond Residential?
Higher net yields—office and warehouse assets average 6 – 7 %, beating most Tallinn apartments.
Inflation hedging—index-linked commercial leases adjust annually.
Corporate tenants—longer terms (5 – 10 years) and lower turnover risk.
1. Core Commercial Asset Classes
Asset | Prime Yield (2025) | Lease Length | Vacancy Trend |
Grade-A Office (CBD) | 6.0 % | 5 – 7 yrs | 9 % (down) |
Retail High Street | 6.3 % | 3 – 5 yrs | 6 % (stable) |
Retail Park / Supermarket | 6.7 % | 8 – 10 yrs | 3 % (tight) |
Urban Logistics / Warehouse | 7.1 % | 5 – 10 yrs | 2 % (tight) |
Mixed-Use (office+retail) | 6.4 % | 4 – 6 yrs | 5 % (stable) |
2. Legal & Tax Essentials
Share-deal vs asset-deal—buying the SPV’s shares can defer land-registry fees and save VAT.
VAT (22 %)—applies to most commercial rents; opt-out possible for small tenants (< €40 k turnover).
Triple-net leases—tenant pays service charge, insurance, and property tax; common for logistics.
Environmental Due Diligence—Phase-I site assessment required for warehouses and petrol-adjacent plots.
3. Financing Snapshot
Lender Type | LTV | Margin (over Euribor) | Notes |
Local banks (Swedbank, SEB, LHV) | ≤ 65 % | 2.0 – 2.4 pp | Prefer multi-tenant assets |
Nordic debt funds | ≤ 70 % | 3.0 – 3.8 pp | Faster drawdown |
Sale-&-leaseback vendor finance | ≤ 80 % | Fixed 5 % | Good for single-tenant buys |
Tip: Provide a rent roll and WALT (Weighted Average Lease Term) summary to secure best terms.
4. Due-Diligence Checklist
Lease audit—review break clauses, indexation, and tenant covenants.
Technical inspection—BOMA area check, HVAC age, fire-safety compliance.
Service-charge reconciliation—ensure past three years match budgets.
Zoning verification—Tallinn master-plan update 2024 affects plot ratios.
CapEx forecast—roof, lifts, façade; build into yield calc.
5. Value-Add Strategies
Co-working conversion—activate vacant office floors; target tech start-ups.
Green retrofit—upgrade to Energy Class B; raise rent +0.5 €/m² and unlock green-loan discount.
Last-mile logistics—repurpose under-used retail/warehouse near ring-road for e-commerce hubs.
Mixed-use up-zoning—add residential floors on retail podiums in Kesklinn.
6. Exit Options
Strategy | Typical IRR | Holding Period |
Stabilise & refinance | 12 – 14 % | 2–3 yrs |
Forward sell to REIT | 15 – 18 % | 3–5 yrs |
IPO via Baltic First North | 20 %+ | 5–7 yrs |
7. How Bryan Estates Supports Commercial Buyers
Off-market deal flow—projects from banks and corporates before public listing.
Lease-up services—in-house brokerage to fill vacancies fast.
Green-loan packaging—we liaise with lenders for EPC-linked rate cuts.
Asset management dashboard—live KPIs: WALT, arrears, CapEx.
Frequently Asked Questions
Can foreigners own commercial land outright?
Yes—no extra restrictions vs. residential plots.
Is there stamp duty in Estonia?
No. Only notary and land-registry fees (capped at ~0.4 % of price).
Do I need Estonian VAT registration?
Only if annual taxable turnover exceeds €40 k or you opt to tax the rent.
Ready to Explore Estonia’s Commercial Market?
Email info@bryanestates.ee or call +372 123 4567 for tailored deal teasers and a yield calculator.
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