Offices

The office market in the Czech Republic proved its resilience once again. During difficult times, it adapted, held its position and even increased its attractiveness for the future. 

Prague, the obvious choice

The capital city is the obvious first choice for many. Serving as the heart of cultural, economic and political life, many market newcomers are looking for offices here. The market comprises approximately 3.8 million square meters of modern office space. Despite the lower new supply levels over the last two years, developers are able to provide a constant inflow of modern properties with very high standards. Together with further strengthening in the most sought-after locations in Prague 1’s historic core, the Karlin and Rohan areas of Prague 8 or Pankrác and Brumlovka in Prague 4, developers are also establishing new locations with projects such as New Roztyly, Hagibor and Smíchov City. Efforts to create a connected city of short distances are also evident and will continue. The market availability remains at around 8% and was not significantly affected by any of the chal- lenges we have been forced to live through. Some micro-locations could feature lower office availability, as the established submarkets often draw attention with an excellent choice of amenities.

Brno, the leading regional city

Brno is a stable market with a modern office stock six times smaller in comparison to Prague, but there is surely no lack of modern office buildings and impressive architecture. The office market is condensed around and south of the city centre and historical core, but interesting projects are scattered also towards north and east. Newly built office hubs like Vlněna Office Park, Spielberk Office Park and many others form a resilient core for further growth. In future, we can expect impressive new projects like Dornych, and new additions to Ponávka and Vlněna Office Park. The activity comes mainly from local developers and with their market knowledge, their goal is always to bring the highest possible quality and added value with their projects.

Ostrava and other cities

Ostrava is the third largest city in the country, and so is its office market. The modern office stock is relatively small, yet modern properties comparable to the ones in Prague and Brno can be found throughout the city. Established office centres are home to world-class business service centres and new projects, like the upcoming Organica, will become home to renowned brands. For the rest of the country, local developers are pushing through many projects, especially in well-connected cities like Pilsen, Hradec Králové and Olomouc. Such projects, already existing or proposed, are of high-quality and offer excellent services to their clients. Thanks to lower operating costs, choosing to establish the office in smaller cities can prove economically viable, but also more difficult to find.

Summary

Despite the European wide economic slowdown, the Czech office market is able to attract new tenants through competitive market conditions such as high property standards, an innovative environment and a skilled, well-educated and talented workforce. Supported by the beautiful, picture postcard looks of Czech cities, high standards of living and its location in the heart of the European continent, the Czech Republic should always be on the list for expansion options.

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Josef Stanko
Senior Research Analyst
Colliers