CBRE’s Prague office claims that the office boom of recent years will come to an end in 2016, with little new supply coming to market. This will not prevent major corporations from moving within the existing stock, however, as economic growth is forcing them to make decisions about how to organize their staff more efficiently, and how to ensure they have space for expansion. But CBRE warns that while this will benefit existing office buildings, those that are 15 years or older will suffer, unless rents are adjusted appropriately. It also points out that there’s a high level of vacancy among newly completed office projects. Brno, writes CBRE, is attracting more R&D, BPO and shared service center tenants these days than Prague because both labor and rental costs are lower.
