Prague currently offers over 3 million sq m of office space. 15 administrative buildings were finished last year, offering an area of around 150 thousand sq m.
“This figure is comparable to the capacity of space that was completed in the pre-crises years,” said Katarina Wojtusiak, Head of office agency at CBRE.
“The annual amount of office space that was finished fell to 80 thousand square metres during the crises,” added Katarina Wojtusiak.
Does this mean it is the right time to change offices or negotiate better conditions? Absolutely! If you are looking for administrative space, now is the best time.
“The rental market for office space is very competitive. Landlords are offering many enticements in order to fill occupancy,” Katarina Wojtusiak went on to add.
The volume of office space has exceeded demand and landlords are attracting tenants with attractive packages including so-called “rent holidays” or by contributing to office refits.
More in the article: 2015 offers the ideal conditions for leasing office space.
In order to obtain more favourable conditions, you do not have to move into a new office space - it is possible to try to negotiate new terms and conditions of existing rental contracts.
We have noticed the biggest demand in Karlín, Pankrác or in the centre of Prague. Karlín attracts companies, small traders as well as individual residents. The more expensive Prague city centre has remained an attractive locality.
“There are some companies that like the centre, including law firms, financial advisors or investors,” said Katarina Wojtusiak.
At the end of last year, the office vacancy rate fluctuated at around 15.3%, while it could reach 17-18% by the end of this year.
The lowest rate of vacancy can be found at Anděl, Chodov and Opatov. The highest vacancy rates are in Vysočany - Prosek - Letňany.
Graph showing the development of vacancy rates in Prague from the article: 2015 offers the ideal conditions for leasing office space.
We recommend that companies interested in office space start looking on time by preparing contracts and ensuring everything necessary for a move. Moving large companies can take several years. We will help you with the entire process, providing you the smoothest transition throughout this enormous change.
Here is an overview of developer projects that have been completed recently or are planning their completion in a few months.
|Project name||Office space in sq m||Location||Projected completion|
|Aero House||3,700||Prague 8||2015 Q3|
|B3 Pankrác||13,000||Prague 4||2015 Q3|
|Corso Court||17,300||Prague 8||2015 Q3|
|Aviatica||27,000||Prague 5||2015 Q3|
|Enterprise||29,100||Prague 4||2015 Q4|
|Palác Národní||7,700||Prague 1||2016 Q1|
|Classic 7 Phase III.||6,300||Prague 7||2016 Q1|
|Nová Palmovka||16,700||Prague 8||2016 Q2|
|Šporkovský palác||7,000||Prague 1||2016 Q2|
|Park Radlice||6,500||Prague 5||2016 Q2|
|Harrachovský palác||4,000||Prague 1||2016 Q2|
|Butterfly||22,700||Prague 8||2017 Q1|
|Futurama Phase III||9,100||Prague 8||2016 Q3|
|FIVE! Smíchov Offices||14,200||Prague 5||2017 Q1|
|City Deco||13,200||Prague 4||2017 Q2|
And which developer projects were completed in 2014?
|Project name||Office space in sq m||Location|
|City West C1 + C2||24,100||Prague 5|
|Forum Karlín II.||9,500||Prague 8|
|Jindřišská 16||5,900||Prague 1|
|Na Příkopě 14||7,400||Prague 1|
|River Garden II & III||22,700||Prague 8|
|Rybná 9||1,600||Prague 1|
|S9 Florenc||2,700||Prague 8|
|Centrum Chodov Admin Bld.||1,000||Prague 4|
|Jungmannova 15||6,800||Prague 1|
|K7 1||1,000||Prague 8|
|The Blox||16,300||Prague 6|