At the Ülemiste Center Annual Tenant Assembly – the largest meeting of the year – discussions focused on the challenges facing both the retail sector in general and the Ülemiste area in particular. The key issues included the restoration of the consumers’ purchasing power as well as ensuring access to one of the country’s fastest-growing districts and major transportation hubs.
Guido Pärnits, the Head of Ülemiste Centre, pointed out that retail is currently going through difficult times, with the anticipated recovery period proving longer than industry players had hoped. “While 2023 was the best year in the history of Ülemiste Centre, this year turnover and visitor numbers have dropped by 3–4% compared to last year,” said Pärnits, adding that a similar decline has affected almost all shopping centres in Tallinn.
Pärnits emphasized that the tough times are likely to persist for at least another six months, as no one can predict the full impact of rising prices and upcoming tax changes on consumers.
On a more positive note, Pärnits noted that there are still no vacant rental spaces in Ülemiste Centre. “There are even those who say that if they cannot secure a space in Ülemiste Centre, they will not enter the Estonian market at all,” he said. “As of today, Ülemiste Centre can even afford to be selective about its tenants.”
Visitors’ expectations regarding shopping centres are changing
At the Ülemiste Center Annual Tenant Assembly, Kantar Emor research expert Anu Varblane presented an overview of trends and the competitive situation among Tallinn’s shopping centres. A study conducted this autumn revealed that Ülemiste is the most popular shopping centre in Tallinn, spontaneously mentioned by 76% of respondents. It is followed by Rocca Al Mare Keskus and Kristiine Keskus, named by 67% and 66% of respondents, respectively.
“Nearly every second Tallinn resident has made a purchase at Ülemiste in the past two months,” noted Varblane. Respondents cited Ülemiste’s wide product range as its key advantage. Compared to other centres, the study participants rated Ülemiste particularly highly for its selection of footwear, sports goods, as well as both women’s and men’s clothing.
Tiia Nõmm, Head of Corporate Responsibility at Ülemiste Centre, noted that according to the autumn survey by Kantar Emor, Ülemiste Centre is the most environmentally friendly and sustainable shopping centre in Tallinn. “People’s awareness of various aspects of sustainability has grown significantly over the past year. Sustainability is no longer just an abstract concept for people – they can define it,” said Nõmm. She added that respondents especially appreciated the centre’s eco-friendly accessibility, free drinking water offered, and the energy efficiency of the building.
Entrepreneur and visionary Linnar Viik, recently named Tallinn Citizen of the Year, highlighted in his speech that consumers are increasingly seeking comprehensive experiences. Specifically, 60% of people no longer want to simply buy a brand but are looking for a memorable experience. For this reason, Viik predicts that stores will increasingly transform into showrooms in the future, designed to enhance the customer experience on every square meter of available space.
Ülemiste district set to become Estonia’s key transportation hub
At a panel discussion of the Ülemiste Center Annual Tenant Assembly, chaired by Esplan CEO Kadi Metsmaa, the future of the Ülemiste district was a key topic of debate. Anvar Salomets, Head of Rail Baltic Estonia, outlined plans for Ülemiste Station to become a multifunctional transportation hub. Rail Baltic will attract a large number of visitors to Ülemiste, with projections indicating around 2 million annual passengers for Rail Baltic alone. Additionally, the terminal will serve passengers of Elron trains, as well as trams and buses. Preliminary estimates suggest that once the terminal is operational, it will accommodate about 10,000 passengers daily, with peak hours seeing up to 2,000 passengers.
Tallinn’s Chief Architect, Andro Mänd, emphasized the importance of relocating the intercity bus terminal to the Ülemiste district. Consolidating transport hubs in one area would eliminate the need for tourists to traverse Tallinn to switch between modes of transport. According to the capital’s chief architect, in the future, Ülemiste along with Kristiine could become pivotal nodes for public transport users.
Riivo Tuvike, Head of Tallinn Airport, noted that the Ülemiste district is becoming a unique multimodal transport hub for the Estonian capital that integrates land and air travel. With the arrival of Rail Baltic, the airport also anticipates a sharp increase in passenger numbers. This year, for the first time, air passenger numbers exceed 3.5 million, and by 2030, that figure is projected to rise to 6 million.
The Head of Ülemiste Centre Guido Pärnits emphasized the importance of comprehensive accessibility to the district, calling it a critical challenge for the area’s development. The ambitious goal is to integrate Ülemiste Centre with the district, creating a unified destination that attracts visitors from near and far.
The expansion of Ülemiste Centre and the related development projects will establish the district as Tallinn’s new mobility hub, offering high-quality urban spaces for locals and international visitors alike. The project includes a transformation of the centre’s current rear facade into a prominent and appealing feature complementing the European Park and surrounding developments. Plans also include a parking facility with up to three underground levels and 12 above-ground floors for multi-functional spaces. The tallest buildings will line Suur-Sõjamäe Street, with smaller structures located in the eastern part of the complex. The project will add 21,000 m² of retail and service space and 37,000 m² – eight floors – of office space.
The Ülemiste Center Annual Tenant Assembly, the largest annual event bringing together tenants and network partners, took place at Ülemiste Centre on November 20.
A photo gallery of the event can be found HERE (photographer: Kalev Lilleorg).
