Restaurant spaces in Tallinn do not stay empty for long

Many eateries in Tallinn have closed over the past year. Real estate agencies say, however, that there are still plenty of entrepreneurs who want to open new places. Interest from business owners coming from Asia has grown, for example.
This year, restaurants such as Tai Boh, Boheem, Vatikan, Manna La Rosa, Ülo and La Tabla have closed. Even Siili Sahver, a lunch spot that survived the COVID crisis, shut down.
Aira Veelmaa, a commercial real estate broker at Uus Maa, said the situation is not as difficult as media coverage might suggest.
"Looking at the commercial property market, I would say restaurant spaces are among the most sought‑after. There are quite a few people who want to start something new. There is also a more exotic group of clients who have come to Estonia and want to start a business here. Not knowing the Estonian market, they often have more enthusiasm than locals," Veelmaa said.
By "more exotic regions," Veelmaa means people from the Middle East and other parts of Asia.
Popular restaurant spaces often have several interested tenants. Still, some areas are more difficult, such as Narva maantee, where places constantly change. Despite the busy location, restaurants there often do not last long, Veelmaa noted.
The situation is most challenging for eateries located in office buildings because many people work from home. Owners also have to make sure there are not too many food places nearby, since there may not be enough customers for all of them.
But the trend is slightly positive, and more entrepreneurs are looking to open new places, Veelmaa said.
Tanel Tarum of the real estate agency 1Partner also said the situation is not as bad as it may seem from media reports.
"If we look at how many new places are opening, the balance in Tallinn is zero," Tarum said.
He acknowledged that people's movement patterns have changed over time, and areas like Telliskivi and the Volta quarter now see more foot traffic than a few years ago. He added that one reason for closures is insufficient groundwork before opening a restaurant.
--
Editor: Mari Peegel, Argo Ideon












