Prague Office Market – 2017 Q3 Overview
Real Estate and Consulting Company Professionals s.r.o. informs about the state of the Prague office property market in the Q3 of 2017.
Prague office stock changed last quarter adding two office projects to the market. The newly completed schemes are Mechanica buildings within Waltrovka development and Drn (initially Palác Národní) in Prague 1. Total new stock of 2017 Q3 stood at 35,600 m2. Office space delivered between 2017 Q1 and Q3 totaled approximately 64,000 m2.
Total amount of office space under construction in the capital in 2017 Q3 stood around 339,000 m2. Prague 8, Prague 5 and Prague 4 posted the largest development activity with 92,900 m2, 83,700 m2 and 83,400 m2 respectively. CSOB Bank II situated in Prague 5 remained the largest project under construction in the capital – once completed, the building will comprise ca. 30,000 m2.
In Prague, gross take-up dropped by some 16 % compared to the previous quarter 2017 Q2. In 2017 Q3 Prague recorded around 105,000 m2 in office transactions.The largest transaction of 2017 Q3 was new lease deal which was concluded in the new project constructed in Prague 8 named Rustonka II where Amazon took approximately 12,500 m2 of office space.
In 2017 Q3, CBD's prime office rent experienced no significant changes and stayed between 18.50 – 20.00 € /m2/ month. With regard to the prime rents in the rest of Prague, these stagnated between 14.00– 16.00 € / m2 / month in Inner City and between 13.00 – 14.50 €/ m2 / month in Outer City.
Office vacancy rate in the capital city got below the 8% mark in the third quarter of 2017 standing at only 7.8 %. Sharp decrease in vacancy has been recorded since 2014 whilst the 2014 year saw the long term maximum of vacancy rate standing at 15.4 %.
Download full report.