Year 2025
COMMERCIAL REAL ESTATE MARKET – THE MARKET IS WAKING UP, MOMENTUM IS ACCELERATING
Despite the uncertain global trade and geopolitical environment, interest and activity in the Finnish real estate market—particularly among international investors—clearly increased over the year. Domestic players, especially those focused on logistics and so-called light industrial properties, have also been seen moving to the buy side. This growing interest has translated into transactions, particularly during the latter half of the year, as reflected in a strong increase in transaction volumes both in terms of deal count and total value.
Throughout the year, investor interest has been particularly focused on social infrastructure assets, where yield requirements have decreased further. However, the most notable positive shift in valuations has been seen in logistics properties, where yields in several regions have dropped below those of the office market, which continues to suffer from high vacancy rates.
Large residential portfolio transactions were also completed during the year, although many of these were likely driven by sellers’ need to reduce residential allocations for various reasons. In contrast, buyers’ strategies have in some cases been more opportunistic.
Due to high vacancy rates, the office transaction market has been nearly dormant. Pricing expectations between buyers and sellers do not align, or buyers are simply unwilling or hesitant to increase their office exposure. Despite the overall weakness in the office sector, new developments have been initiated in prime locations in the Helsinki metropolitan area (CBD, Keilaniemi, Pasila) at very high rental levels. The office market is highly heterogeneous—location and quality are more important than ever. Prime assets are achieving record rents, while in less desirable areas space may remain vacant regardless of pricing.
LEASING – STEADY PERFORMANCE AND ACTIVE OPERATIONS IN THREE CITIES
In 2025, our leasing business continued to grow strongly. We completed a total of 170 lease agreements, compared to 117 in the previous year. Our teams in Turku and Helsinki maintained their active and effective performance, while our Tampere office—operating its first full calendar year—had an excellent start, completing 44 lease agreements.
A particularly notable success was the leasing of an approximately 15,000 m² logistics center under construction in Raisio to an international tenant.
The majority of lease agreements, 54% (91 deals), were for office space. Retail accounted for 27% (46 deals), and industrial/logistics premises for 19% (33 deals).
TRANSACTIONS – ON AVERAGE, A DEAL EVERY OTHER WEEK
In 2025, our transaction team completed a total of 26 transactions (29 in 2024), covering a broad range of asset types, including retail, industrial/logistics, and other property categories. Specifically, 7 transactions were related to retail premises, 12 to industrial or logistics properties, and 7 to other types of assets. Reflecting the current market conditions, only one office transaction was completed during the year. Transaction sizes varied significantly, ranging from small industrial unit shares of just a few dozen square metres to a 15,000 m² logistics center. The latter serves as an excellent example of our comprehensive service approach: we were initially involved in leasing the property and subsequently identified a suitable buyer for the leased asset. Another notable success during the year was the completed transaction process of a hotel property located in Kupittaa, Turku.
VALUATION & ADVISORY – EXPERTISE THAT MATTERS TO CLIENTS
Our valuation team completed approximately 80 property valuations, in line with the previous year. Most of these were certified (AKA) valuations, covering nearly all property types across Finland.
In advisory, the most notable achievement was the sale of approximately 25,000 gross square metres of residential building rights in a prime location in Töölö, Helsinki, where we acted as the seller’s advisor.
ASSET MANAGEMENT – FIRST INVESTMENT CLUB ESTABLISHED
Our subsidiary, TK Asset Management Oy, actively manages properties in Turku and Helsinki on behalf of both domestic and international investors, and continues to source new investment and development opportunities.
In spring 2025, the company rapidly assembled an investor group consisting of foundations based in Turku to develop a centrally located parking facility in the city. TK Asset Management acts as the investors’ representative and is responsible for managing the project during both the construction and ownership phases.
OUTLOOK AND OBJECTIVES FOR 2026
We believe the positive momentum in the real estate market will continue. Tenant demand is expected to remain strong as companies seek premises that better support their operations—whether that means more efficient and smaller spaces, additional space for growth, or higher-quality, more functional and attractive environments.
Interest from international investors, particularly from the Nordic region, is expected to increase further. We anticipate a significant rise in transaction volumes compared to last year. Demand for social infrastructure and logistics assets will remain strong, with growing interest also in light industrial properties. Retail transactions are expected to pick up, while office and residential portfolio markets are likely to remain more subdued.
Following the expansion of our team over the past two years, combined with the implementation of new workflows and the latest industry software, we are well prepared for a market that is awakening—and hopefully becoming more dynamic during the current year. This will create numerous opportunities for both our clients and us to engage in exciting projects and drive profitable business growth.
We wish everyone a successful start to 2026!
Best regards,
Matti Äijälä
CEO, Partner
+358 45 634 4400
