Commercial property yields in Georgia: offices, shops and warehouses

What do commercial properties yield in Georgia?

The latest published figures put Tbilisi business-centre offices at a net rental yield of 9.4% in 2025 and prime high-street shops at 8.6%, both from Galt & Taggart's May 2026 reports. Those are the best spaces in the city. The weak spot is the largest one: about 1 million m² of offices in residential buildings, the kind of ground- and first-floor units developers sell in new blocks, of which 53% stood empty in 2025. Rents for warehouses rose 34% in 2025 to $6.3 per m² a month. For an individual investor, the gap with residential property is also a tax gap: rent from commercial space is taxed at 20%, against 5% on homes let to live in.

This page sets out yields, rents, vacancy and new supply by segment, explains why sources differ, and shows what the figures mean for a buyer. How to buy and manage commercial property is covered in our guide to commercial property in Georgia.

Published yields by segment

The three figures are not measured the same way: the office yield is labelled net, the retail one is a prime yield for the best units, and the residential one compares rent with the price of an unfinished new flat. What they show together is that the best commercial space in Tbilisi earns roughly what a flat does before tax, with more concentrated tenant risk. Tbilisi's prime high-street yield of 8.6% compares with 6.0% for Central and Eastern Europe and 4.8% for Europe as a whole in the same report.

Offices: strong today, more supply coming

Leasable business centres doubled from 178,000 m² in 2014 to 358,000 m² in 2025, mostly in Saburtalo (44%), Vake (24%) and Mtatsminda (15%). Vacancy was 6.6% in 2025, lower than in many European capitals, because demand grew 62% between 2019 and 2025, led by foreign firms and IT: IT employment in Tbilisi rose 120% over the period, and foreign tenants took 67% of upscale space in 2025. The outlook is less comfortable. About 100,000 m² of new business-centre space is due in 2026-2028, growing supply 28% while demand is expected to grow 14%, so Galt & Taggart forecasts vacancy rising to 16.8% and the net yield falling to 8.4% by 2028, with "a slight correction" in rents possible.

Offices in residential buildings: half empty

More than half of Tbilisi's 1.9 million m² of office space is not in business centres at all but in residential buildings: about 1.0 million m², two-thirds of it in buildings built before 2013. In 2025, 53% of that space was vacant, and ongoing leases averaged $13 per m² a month, against $28 for upscale business centres. These are the ground- and first-floor units that developers often offer to investors as "commercial space" in a new residential block. Galt & Taggart expects midscale business centres to keep winning tenants from them on price, management, parking and security. A unit of this kind needs a specific tenant in mind, not an assumption that commercial space always earns more.

Shops and shopping centres

High-street rents have been flat for three years, at about $37 per m² in new leases; in existing leases Rustaveli Avenue averaged $44 in 2025, Chavchavadze Avenue and Pekini Avenue $32 and Aghmashenebeli Avenue $25. High-street space is physically limited and depends on tourists and premium brands. Mall rents doubled between 2020 and 2025, but vacancy in the largest malls rose to 6.6% in 2025 as new space opened, and about 140,000 m² more is planned by 2030, a third more than today. Online shopping is still small, 2.3% of retail trade in 2025, so it is not yet a major threat to shops.

Warehouses: the fastest-rising rents

By class, Tbilisi warehouses let for $7.5 per m² (A), $4.9 (B) and $4.1 (C) in 2025; Batumi averaged $5.4. About 80% of the stock is older, lower-class space, which is why modern units command the premium. Supply is set to grow by about 31% to 1.65 million m² by 2027, much of it owner-occupied, and Galt & Taggart expects rents to stabilise. Only 31% of Tbilisi warehouse space is leased to others, and users needing more than about 7,000 m² increasingly build their own, which limits the pool of large tenants.

Rents outside Tbilisi

Outside the capital most offices are on the lower floors of residential buildings, and the best shopping streets let for much less than in Tbilisi: Batumi's Gorgiladze Street averaged $29.4 per m² in 2024. TBC Capital expected two new shopping centres to almost double Batumi's mall space, which will compete with street retail.

Why sources give different rents

Galt & Taggart's office and retail rents include the service fee and exclude VAT; TBC Capital's exclude both. Galt & Taggart groups offices by price segment, TBC Capital by class, and the two count different sets of malls. A Class A office at $28 per m² in TBC Capital's 2024 survey and an upscale office at $29 in Galt & Taggart's are therefore not the same measure. Compare figures from one source over time, and ask any seller whether a quoted rent includes the service fee and VAT.

What the numbers mean for a private investor

• Tax. An individual's rent from commercial space is taxed at 20%, and when the owner is a non-resident a business tenant withholds it at source; the 5% rate applies only to homes let to live in. A 9% gross yield becomes about 7.2% after 20% tax, before vacancy and costs.
• VAT. Commercial rent counts toward the GEL 100,000 VAT registration threshold, after which 18% VAT is charged on the rent.
• Vacancy. One empty year in five removes a fifth of the income; in residential-building offices more than half the space was empty in 2025.
• Leases. Commercial rents are typically set in US dollars at a fixed rate, so read the lease for its length, indexation and break clauses.
• Prices. No analyst publishes sale prices per m² for commercial units, so test any asking price against the rent: at $13 per m² a month, a 50 m² unit earns $7,800 a year, which is a 9% gross yield only at a price of about $86,700.

Questions to ask before buying commercial space

1. Who is the tenant, and on what lease? A unit let to a known business on a long lease is a different investment from an empty unit; ask for the lease, its length, the rent, the currency and any break clauses.
2. What is the unit registered as? The registry extract should show non-residential use that matches the business you expect, whether office, shop or café.
3. Can the planned use work physically? Food businesses need ventilation, drainage and a separate entrance; offices need parking nearby and good internet.
4. What do the neighbours pay? Ask nearby shops and offices what they rent for, and compare with the source figures above, net of service fees and VAT.
5. How many similar units are empty? In new districts, count the vacant ground floors along the street before believing a projected rent.
6. What are the running costs? Building service charges, utilities in empty months, insurance and any VAT on the rent.
7. Who will manage it? Commercial tenants expect quick answers on repairs and invoices; owners abroad usually need a local manager or accountant.

Answering these questions in writing turns a developer's promise of "commercial income" into a figure you can check, and a unit that cannot answer them is usually priced too high.

Risks and exceptions

• Office oversupply. Business-centre vacancy is forecast to reach 16.8% by 2028.
• Empty units in residential blocks. 53% vacancy in 2025.
• Tax. 20% on commercial rent for individuals.
• Tenant concentration. One tenant leaving stops all income.
• No price data. Sale prices are not published, so yields are hard to check.

Frequently asked questions

What is the office yield in Tbilisi?

9.4% net for business centres in 2025, forecast at 8.4% in 2028 (Galt & Taggart).

What do prime shops yield?

8.6% for prime high-street retail in Tbilisi in 2025.

Is commercial property better than a flat?

Not automatically: yields are similar before tax, and commercial rent is taxed at 20% against 5% on residential rent.

Are ground-floor units in new buildings a good investment?

Only with a clear tenant; offices in residential buildings were 53% vacant in 2025.

What do warehouses rent for?

An average of $6.3 per m² a month in new Tbilisi leases in 2025, $7.5 for Class A.

What are high-street rents?

About $37.6 per m² in new Tbilisi leases in 2025; $44 on Rustaveli Avenue in existing leases.

In what currency are commercial leases?

Usually US dollars, with fixed rents.

Are commercial sale prices published?

No; only rents and yields are published.

Sources

1. Office Real Estate Market in Tbilisi, Galt & Taggart, May 2026 (accessed 19 October 2026)
2. Retail Real Estate Market in Tbilisi, Galt & Taggart, May 2026 (accessed 19 October 2026)
3. Warehouses and Logistics in Georgia, Galt & Taggart, July 2026 (accessed 19 October 2026)
4. Overview of Commercial Real Estate in Georgia 2024, TBC Capital, May 2025 (accessed 19 October 2026)
5. Georgia's commercial real estate market sees rising demand (TBC Capital), Investor.ge, 6 April 2025 (accessed 19 October 2026)
6. Tbilisi Residential Real Estate, July 2026, Galt & Taggart (accessed 19 October 2026)
7. Tax Code of Georgia (Articles 81, 134, 154 and 165), Legislative Herald of Georgia (accessed 19 October 2026)

Change log

• 19 October 2026 - Data page published from Galt & Taggart office, retail and warehouse reports (2026), TBC Capital's commercial survey 2024 and the Tax Code.