Prague Office Vacancies Down 3% In Q1

Czech Economy, Czech Industry and Trade Ministry

Prague, May 1 (CTK) – The vacancy rate for office space in Prague decreased annually by 3.2 percentage points to 6.2 percent at the end of Q1, going down by more than a half over the past two years, Prague Research Forum (PRF) data have shown.


Prague 3 registered the highest rate of 11.1 percent, followed by Prague 5 with a rate of 7.7 percent, while the lowest rates of 3.6 and 3.9 percent were seen for Prague 2 and Prague 10, respectively.


Four buildings with a total area of 38,700 square metres were completed in the capital city of Prague in the Jan-March period, which is about one quarter of office space built during last year.


Visionary in Prague 7 was the biggest project. Other projects included City West A1 in Prague 5, and Nekazanka 11 and Mango Building in Prague 1.


There are 334,000 square metres of office space under construction in Prague at the moment. Offices are due to be completed this or next year.


Q1 saw the launch of construction of five buildings, with three quarters of them being started in Prague 8. VN47 in Prague 1 and Rustonka R4 in Prague 8 are the largest projects.


First-quarter office space for which lease contracts were signed or extended went down by nearly a fifth year on year. The largest share of lease deals was registered in Prague 1, 29 percent, with Prague 4 and Prague 8 to follow. IT, consulting and pharmaceutical companies constituted about two fifths of the overall demand.


“Eight in ten companies in central Prague plan to move out, seeking largely above-average office space with modern design elements,” Radek Prochazka, managing partner of consulting company Prochazka & Partners, told CTK.


The highest rents increased to EUR20-21.50 (Kc510-535) per square metre and month in the centre of Prague and to EUR15-16.50 (Kc380-420) in the inner city, staying at EUR13.50-15 (Kc342-380) per square metre and month in outer Prague.


PRF’s members are property consultants CBRE, Colliers International, Cushman & Wakefield, JLL, and Knight Frank.