News2025.10.11 11:00

Wild capitalism icon: Vilnius’ landmark office tower set for demolition after two decades

LRT PLIUS, LRT.lt 2025.10.11 11:00

One of Vilnius’ first modern office buildings, the 15-story “Pencil” tower on Geležinio Vilko Street, is set to be demolished after more than 20 years – marking the end of an era for Lithuania’s early post-independence architecture.

Built in 2001, the glass-fronted tower, officially known as one of the first contemporary office buildings on the right bank of the Neris River, drew both admiration and criticism when it opened.

Developer Arvydas Avulis, who brought the idea from Germany after several years working there, said he wanted to introduce Western-style high-rises to Lithuania. “I saw many impressive buildings abroad, and I wanted to create something similar here,” he recalled.

Architect Audrius Ambrasas and a Lithuanian design team created the sleek, minimalist building, which quickly filled with tenants even before construction was complete. Each floor was identical, and the tower pioneered tiered pricing – with offices on higher floors costing more for their panoramic city views.

At the time, underground parking was not yet common, and companies were eager for any modern space. “It was much easier to find tenants back then because modern buildings barely existed in Lithuania,” Avulis said.

Yet the building soon became controversial. Its height and location obscured views of Vilnius’ historic Old Town skyline when seen from Šeškinė Hill, one of the city’s iconic vistas.

The city’s former chief architect Mindaugas Pakalnis said that at the time, planners lacked advanced 3D modelling to predict how the tower would affect the landscape.

“The building pushed things forward in terms of technology and ambition,” Pakalnis said. “But it also changed the city’s panorama.” Demolishing it now, in a sense, corrects that chapter in Vilnius’ urban development, he thinks.

Originally planned as a seven-story structure, the “Pencil” rose to 15 stories after extended discussions with city officials. Ambrasas later said the tower was architecturally successful but “not entirely in the right context”.

“Wild capitalism, if you will,” he summarised the concept behind the building. “They wanted things fast, shiny, and pretty.”

Developer Hanner, which owns the building, announced plans to tear it down 23 years after it opened. Avulis said the decision reflects how the office market has changed.

“The building was designed for small companies,” he said. “Now businesses are larger, with hundreds of employees, and they want offices on a single floor – not spread across multiple levels. That’s what dictates our choices now.”

Once seen as a symbol of modern progress, the “Pencil” will soon make way for a new business complex – and, as Pakalnis put it, offer “a different view of Vilnius” once again visible from Šeškinė Hill.

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