Two new office buildings were added to the Prague office market in the first quarter of 2012, writes the Prague Research Forum in its latest report. The completion of B3 Pankrác, offering 23,300 sqm of office in Prague 4, and Keystone with 5,650 sqm in Prague 8 brought the total modern office stock in Prague to 2.81 million sqm in the first quarter of 2012 — 69 percent of it being A-class and 31 percent B-class properties. The completion of a further 83,500 sqm of modern office space is expected by the end of the year, while a further 135,000 sqm, currently under construction, should come on-line in 2013. Gross take-up has decreased slightly by 6 percent to 79,750 sqm y-o-y in the first quarter of 2012, with Prague 5 on top with 40 percent of the total. Renegotiations represented 47 percent of the total gross take-up. The most significant leasing transactions included Vodafone taking 16,300 sqm in City West in Prague 5, KPMG’s renegotiation of 10,900 sqm in Florenc Office Center in Prague 8, and Johnson & Johnson’s renegotiation (4,500 sqm) in Anděl Park in Prague 5. Office vacancy rose slightly to 12.3 percent by the end of Q1 2012, with no obvious effect on prime headline rents, which remain stable at €20-21 for the city center, €15-16 in Pankác and €17.50 in Anděl and Karlín.
