Total modern office stock in Prague remained stable in the third quarter of 2014, totaling 2.96 million sqm, according to new data released by the Prague Research Forum (PRF). A-class properties make up approximately 67 percent of the total stock, while trophy AAA class offices hit 264,800 sqm or 9 percent of the total.
Following a strong second quarter, no new office buildings were completed in the third quarter. Around 103,600 sqm of office space is currently under construction with planned completion set for the end of the year, bringing the total completed volume in Prague in 2014 to 180,700 sqm, the highest it’s been since 2008. Major projects with expected delivery in the fourth quarter include BB Centrum Delta (32,500 sqm) in Prague 4, ArtGen (22,900 sqm) in Prague 7 and The Blox (16,300 sqm) in Prague 6. No new construction broke ground in the third quarter.
Gross take-up (including renegotiations) in the third quarter amounted to 93,100 sqm, which represents an increase of 53 percent compared to the previous quarter and 77 percent y-o-y. The most significant transactions were the renegotiation of Česká pojišťovna (32,200 sqm) in two buildings in Prague 4, the renegotiation of ExxonMobil (8,600 sqm) in Atrium Flora in Prague 3, and the new lease of NRC Česká republika (3,700 sqm) at River Garden II in Prague 8. The vacancy rate fell by 0.6 percent to 14 percent. Prime headline rents remained flat in Prague at €18.50 to €19.50/sqm/month in the city center, €15 and €17.50/ sqm/month in the inner city and €13 and €14.50/sqm/month in the outer city.
