The first three months of 2016 failed to bring any new office space to the Prague market, as no completions or refurbishments came online in Q1. It means the total volume of modern office stock in Prague remained at 3.2 million sqm. Top quality AAA-class properties account for 15 percent of this total, according to the latest Prague Research Forum (PRF) report.
No completions doesn’t mean no building, however, as 163,800 sqm of office space are in the works now in Prague. Construction began in Prague 4 on Main Point Pankrác (24,000 sqm) and in Prague 5, with the next phase of City West (building A1, 9,300 sqm) in Stodůlky.
But in all, just 37,000 sqm of new office space will be added to the city’s total stock in 2016, a steep fall from the strong delivery of 190,000 sqm in 2015. Gross take up amounted to 92,200 sqm in the first quarter, a drop of 43 percent q-o-q and increase by 26 percent y-o-y. Prague 4 recorded 23 percent of the take-up, followed by Prague 1 and 5. Professional services were the most active with 19 percent of total gross take-up.
The largest transaction was the expansion of Česká spořitelna by 5,600 sqm in Trianon in Prague 4. Prime headline rents in the city center remained flat at €18.50 to 19.50/sqm/month, at €14.50 and €16 in the inner city and €13 to €14.50/sqm/month in the outer city. Vacancy decreased slightly by 0.7 percent to 13.9 percent.
