Work in shared spaces is gaining popularity. Not only is the interest of companies in renting serviced and flexible offices growing, but also the overall share of coworking spaces in the Prague office market. In 2018, it was still around 1.2%, but this year it reached 3% at the end of the first quarter, which corresponds to almost 110,000 sqm of modern office space in the capital. Moreover, data from CBRE suggests further positive developments in the future. In Q1, 5,100 sqm of flexible office space was newly leased, representing a year-on-year increase of 23% and the highest number of transactions during the first quarter since 2019.
Significant benefits of coworking include greater flexibility than standard leases as well as clearly defined upfront costs without the risk of unexpected expenses. It is also a solution for companies trying to attract new millennial talent or considering entering new markets. However, the current strong demand for coworking space is mainly due to current trends in the labour market.
“The first one is the return of people back to the office after the pandemic of covid-19 died down. This increase in the number of employees returning to their original but newly adapted or downsized offices after the pandemic creates a demand for flexible space,” explains Helena Hemrová, Head of Office Leasing at CBRE, and continues. Companies are increasingly focusing on the spaces they operate and their impact on both their employees and the environment. They are looking for ways to improve their attractiveness and sustainability. To speed up the renovation process, companies are leaving their own offices for a transitional period and using coworking centres instead.”
The available data shows that historically, the demand for serviced offices in the capital has always been driven by companies from the technology sector, but in the last fifteen months there has been a structural change. The largest number of shared spaces have been leased by consulting firms during this period (500 in total), followed by companies in the finance sector (300 spaces) and then technology (240 spaces). The average length of new contracts was 16 months.
The largest amount of space (almost 23,000 sqm) has been leased to operators of serviced and flexible offices in the Pankrác and Budějovická area since 2018, where the monthly fee for a workplace in a separate office comes to EUR 375. The city centre (21,000 sqm) and Karlín (18,800 sqm) followed. From 2018 to Q1 2023, a total of 86,000 sqm of office space was leased in the capital for shared office purposes, with the largest share (27%) in the Pankrác-Budějovická area,” says Lenka Ferguson, flexible office and coworking space specialist at CBRE.
The highest average rents are achieved by operators in the city centre. In the most prestigious coworking addresses, such as Národní and Na Příkopě streets, the monthly fee for a workstation in a separate office is EUR 400. Only ten euros less is paid in the centre of Karlín, where demand has long outstripped supply. “Serviced offices in locations further away from the city centre are also growing in popularity, mainly due to lower costs and the high standard of services offered. For example, in Chodov, the basic monthly fee is EUR 350 and in Stodůlky it is EUR 330,” comments Lenka Ferguson.
Serviced and flexible office space is widely used across the corporate spectrum. Both with freelancers and large corporations, which offer them to their employees as a benefit and a diversification of the already established tandem of office and home office work. “Coworking centres have a specific atmosphere. There is no lack of playful design or rooms equipped with the latest audiovisual and communication technology. In addition, they organise various social and educational events for their members, joint breakfasts, exercises and so on,” concludes Helena Hemrová.
