The Prague office market grew by 51,500 square meters In the second quarter of 2018, thanks to completed projects Trimaran, Dynamica and Rustonka R2. By 2020, another 312,500 m2 will be completed in Prague. This data is based on the latest study by the Prague Research Forum (PRF). The members of the PRF are CBRE, Colliers International, Cushman & Wakefield, JLL, Knight Frank Thanks to this collaboration, we can provide consistent, accurate and transparent data about the Prague office market.
A volume of 51,500 sq m of modern office space was delivered to the Prague market in the second quarter of 2018, contributing to the overall office stock of 3,408,900 sq m. The largest newly completed projects were Trimaran (18,300 sq m) in Prague 4, Dynamica (13,400 sq m) in Prague 5, Rustonka R2 (11,400 sq m) in Prague 8.
In Q2 2018, two projects commenced construction, including AFI City “A“ (15,500 sq m) in Prague 9 and Parkview (14,800 sq m) in Prague 4. There is currently about 312,500 sq m of office space under construction in Prague with scheduled completion by the end of 2020.
A-class office stock has about 72% share in the total office supply, whereas the top-quality AAA-class properties accounted for 19%.
Gross take-up (including renegotiations and subleases) in the second quarter of 2018 amounted to 145,200 sq m, representing a 70% increase compared to the previous quarter and a 6% year-on-year decrease.
The highest demand was recorded in the city districts of Prague 5 (25.4%), Prague 4 (24%) and Prague 7 (14.1%). The most active companies were from the manufacturing sector (23.4%), followed by advertising and media (17.9%) and IT companies (9.3%).
The share of renegotiated leases in the second quarter of 2018 increased to 36%. Net demand (new leases, expansions and pre-leases) accounted for about 64% of the total take-up.
The major transactions of the second quarter of 2018 were the renegotiation of Siemens (23,200 sq m) in City West project in Prague 5 followed by the pre-lease of WPP (16,300 sq m) in the building Bubenská 1 in Prague 7.
The share of vacant office space increased to 6.9% at the end of Q2 2018, which is in 0.7 percentage points higher than in the previous quarter. Total vacant space amounted to 236,700 sq m. The highest vacancy rates were recorded in Prague 5 (11.3%) and Prague 3 (8.7%). Conversely, the lowest vacancy rates were recorded in Prague 10 (3.9%), Prague 6 (4.9%) and Prague 2 (5.2%).
Prime headline rents in the city centre slightly increased and stood between €21.00 and €22.00/sq m/month in the city centre in the end of Q2 2018. The Inner city prime rents ranged from €15.00 to €16.50/sq m/month and the outer city from €13.50 to €15.00/sq m/month.