Demand on Brno’s office market has fallen this year and the trend is only expected to strengthen for the remainder of the year. Cushman & Wakefield reports that overall demand, which it defines as the volume of rental agreements) could fall to levels last seen in 2011 and 2013, when the market was considerably smaller than it is this year. That being said, despite the pandemic, vacancy levels haven’t increased yet and the market’s absorption continues to be positive. However, writes Cushman & Wakefield, that’s only thanks to activity that began in 2019 before the crisis erupted. Little new demand is expected to emerge before the end of the year. Lukas Netolicky says he’s been speaking with the heads of shared services centers, whose work procedures are governed by the foreign companies whose own employees will be working from home for the rest of the year. “The majority of them are currently thinking about how to use office space as effectively as possible, what offices could look like in the future and how much space they’re actually going to use. At the moment, few tenants in Brno are using their space to the full: the amount of employees allowed to be in the office at one time is usually between 25 and 60 percent.”
