Office vacancy falls to 16.5% in Brno

Three projects with 38,800 sqm of modern office space are currently under construction in Brno, according to the Regional Research Forum (RRF). Building O (15,200 sqm) and P (15,000 sqm) in Areál Slatina and project Dorn (7,200 sqm) should come online in 2016/17. Polyfunkční dům Smetanova with 1,500 sqm of office is the only project expected to be completed in 2015, adding to the current stock of 482,900 sqm that was available as of the end of the first half of 2015. The renegotiation of IBM (12,900 sqm) in Technologický Park Brno marked the biggest deal in H1, followed by new leases by Aeskulab (1,600 sqm) in CTOffice, Tarifomat (1,500 sqm) in Titanium and GE Money Leasing’s deal for 1,050 sqm in Spielberk Tower I. The city’s vacancy rate has dropped 3.1 percentage points since the end of 2014 to 16.5 percent, while rents have remained flat at €12.50/sqm/month.