A new format for business: what stock offices are and how they are organized in the Baltics

A stock office is a hybrid format that combines several types of premises: offices, warehouses and sales areas. Usually their total area is several hundred square metres. 

The basic idea of a stock office is a space where companies can conduct office activities and store goods at the same time. According to CBRE, an international company specialising in commercial space, stock offices offer a unique combination of flexibility and functionality required by dynamic businesses and are increasingly being opened in the Baltic States.This format is particularly relevant for businesses engaged in online trading; it allows them to process orders quickly and reduce delivery times.

Advantages of stock offices

The main advantage of stock offices is the acceleration and simplification of all processes that involve transport and interaction between employees.

Logistics optimisation

Companies can store goods and raw materials in close proximity to their employees’ workplaces. This greatly simplifies inventory management and speeds up the dispatch of goods to customers. In addition, by optimising logistics, stock offices help to reduce CO2 emissions; according to a study by the World Economic Forum, the integration of logistics functions can reduce transport costs and carbon dioxide emissions by 10-20%.

Quick adaptation 

Compared to other workspaces, stock office spaces are more efficiently distributed and can be more easily adapted to changing business needs, whether it’s an increase in storage space, an expansion of office space or a change in business model. For example, a business with a stock office will find it easier to organise direct sales and thus attract additional customers.  

Employee interaction

The working environment in stock offices also has a number of advantages. According to Knight Frank research, such hybrid work formats contribute to improved morale and employee engagement, which in turn improves overall company performance. 

The idea of combining warehouse and office functions is not new in itself. With the onset of the industrial revolution in Europe, it became particularly in demand in industrial parks and commercial complexes. But the demand for flexible, versatile spaces has grown especially in the 21st century with the development of online commerce and logistics start-ups. This is mainly due to the fact that lead times have become tighter, and such concepts allow for quicker turnaround times, lower costs and optimised team performance. 

Another factor that has made stock offices much more popular is COVID-19. For the duration of the pandemic, many companies had to re-equip their workspaces to take into account the anti-COVID restrictions or to transfer employees to remote work altogether. “Classic” office space remained empty, while stock offices, with their more flexible rental formats, remained in demand.

Pandemic also emphasised the importance of safety and hygiene in workspaces. Stoke offices tend to offer larger and more spacious spaces compared to conventional work formats, allowing for social distance and other safety precautions. 

Stock offices in the Baltics

In the 2000s, Baltic cities started to actively improve transport infrastructure and direct more investments into commercial property. A natural consequence of this was the construction of the first stock offices in the Baltics. As a rule, they are located within the city limits and close to the main motorways.

According to CBRE data in Baltic stock offices 65 to 85% of the area is occupied by a warehouse, 20-30% by office space and showroom. The rental price depends on the ratio of these spaces. In the coming years, the demand for them will only grow: this is due not only to changes in business processes, but also to the desire to be closer to customers and more visible against the background of competitors. In addition to the possibility of locating a stock office within the city, such facilities benefit from their presentable appearance: companies use them as a kind of “business card building” and also place representative showrooms in them.

The average size of stock offices in Latvia, as CBRE notes, is from 300 to 900 square metres. For example, Versum, a Latvian business complex  in an innovative approach to organizing workspaces. Versum’s facilities are located in Riga, 9.5 kilometres from the port and city centre and 19.5 kilometres from the airport. These are three buildings, which may have the tenant company’s logo or name on the façade. 

Versum’s office space can be easily adapted to a specific company: expand or reduce it, build an employee kitchen or meeting rooms in the office spaces. The showrooms have their own entrance and are clearly visible from Ulbrokas Street; a large car park for customers and lorries adjoins the buildings. The warehouses are equipped with special doors and illuminated with shed lights. 

Regardless of the type of room, all Versum spaces have high ceilings and are equipped with intelligent control systems that allow for efficient energy consumption and reduced environmental impact. The environmental aspects of the projects are given special attention: energy-efficient technologies and materials, water collection and reuse systems, solar panels on the roof, car charging stations and other green solutions are used for the construction and maintenance of the buildings. 

In addition, the entire complex will be BREEAM certified. This is one of the most reliable and authoritative methods by which the sustainability of buildings is assessed. 

Estonia: stock office in Peetri 

Read more 

Of the three Baltic countries, Estonia is the country where the stock office boom started the earliest. The first such building appeared in 2015 on the outskirts of Tallinn in the areanear Tartu Highway. Then several projects were built in Tartu. 

In 2024, another major stock office in Tallinn will be completed in the Peetri neighbourhood. The project by developer NOBE  and EVERAUS Kinnisvara offers premises of up to 58 square metres with ceilings of up to 4 metres. At the rear of the building are lifts for loading goods and parking. The ground floor level on the side of the main façade is occupied by showrooms, the first floor by office space and the third floor by guest apartments. 

The peculiarity of Lithuanian stock offices is the focus on trade rather than on office and warehouse or office and production facilities. SBA Urban will soon complete the construction of two Urban HUB stock offices in Vilnius and Kaunas. In addition to business premises, the project will include green areas, cafes and places for business events. The complex will also include a large grocery shop—it will appear on the side of the A6 motorway, which links Kaunas with the cities of Ukmerge and Visaginas.