Tbilisi’s commercial rental market is experiencing a severe shortage of available retail space alongside rapidly rising prices, according to Sakura Properties founder Viktoria Sakurova. She says demand on central streets is so high that supply simply cannot keep up, making vacant storefronts nearly impossible to find.
The highest pressure is concentrated on the city’s main streets - Chavchavadze, Rustaveli, Pekini, Kazbegi, and Vaja-Pshavela Avenues. Sakurova notes that new openings on these streets typically happen only through tenant replacement, where incoming renters offer landlords significantly higher prices. As a result, rents continue to climb sharply. On central streets, commercial rents start at $30 per sq.m., while roadside locations in outer districts begin at $15 per sq.m.
The shortage is especially critical for large retail chains seeking 2,500–3,000 sq.m. spaces - a size Sakurova says no longer exists in central districts. Developers with available large areas typically have them in secondary streets or inner courtyards, which limits suitability for major brands.
She argues that businesses must adapt to Tbilisi’s ongoing expansion and consider emerging districts rather than clustering solely in central areas. The example of Didi Dighomi, which a decade ago lacked retail presence but is now a major commercial hub, illustrates the potential of developing neighborhoods.
Office rental trends show a slightly different picture. Demand remains strong, but preferences have shifted toward premium, modern business centers, which are in limited supply. Sakurova notes that many high-end offices remain empty only because their pricing is unrealistic, while spaces with reasonable market rates are fully occupied.
