Increase in vacancy rate on Prague office market in 2009

2010-02-04

The total amount of office space in Prague reached 2.691 million m², according to the Prague Research Forum, which includes CB Richard Ellis, Colliers International, Cushman & Wakefield, DTZ, Jones Lang LaSalle and King Sturge. A class space accounts for some 67%, with the remainder consisting of B class space.
In 2009, approximately 161,700 m² of newly-built office space was added to the Prague market, 61,000 m² in the last quarter. The largest completed office projects in 2009 included the City West complex in Prague 5, with over 43,000 m², and the Marina Office Center in Prague 7 with over 13,000 m².
In 2010, the forum expects some 33,700 m² of office space to be completed in Prague. In Q4 2009 demand for office space, including the renegotiation of contracts, involved some 101,000 m², which was double the figure of the previous quarter. Some 56% of the total transactions in terms of value were concluded last year in Prague 8 and Prague 5. Demand came mostly from the financial and telecoms industries. Total demand for office space in 2009 reached 245,000 m², a reduction of 7% in comparison with 2008. Renegotiation accounted for 35% of this.
The vacancy rate on the Prague office market increased in Q4 2009 to 12% from 10.4% during the previous quarter. The highest vacancy rates were in Prague 7 (23.8%) and Prague 9 (20.2%). The lowest rates were in Prague 10 (8.5%) and Prague 4 (8.7%).
Rents stabilised in the last quarter of 2009, ranging between €20 and €21/m² per month in the city centre. The lowest rent in Prague fluctuated around €14/m² per month.