Bratislava Research Forum has announced the results of office market figures for Q1 2024. Data are showing stable results and the good news is that more than 40% of the stock is sustainable and green-certified.
In the first quarter of 2024, the total office stock in Bratislava represented 2.09 million sqm. 19% of the total stock consists of class A+ office space, 37% of A class, and 44% of class B. During the first quarter of 2024, no office buildings were added to the offer. In terms of the ownership structure, similarly to the previous quarter, approximately 4% of the office stock is state-owned, almost 11% are buildings owned and fully occupied by the same entity, and the total stock for commercial use remains at 85% (or around 1.8 million sqm) of total modern office stock in Bratislava.
Bratislava offers almost 852,220 sqm of office space with a valid green/sustainable building certificate. This is 41% of the total volume of office space in Bratislava. Currently, 45 out of 278 buildings meet the criteria. Only two buildings in Bratislava have the highest BREEAM Outstanding rating - Twin City Tower and Pribinova 40. In the case of LEED Platinum, it is Ein Park Offices which also achieved the LEED Zero Carbon certificate and became the first zero-carbon office development in Slovakia.
In the first quarter of 2024, leasing transactions reached an area of 46,125 sqm, slightly less than 600 sqm compared to the previous quarter. It represents a 1% decrease. On a year-on-year basis, there is a 1% increase in the volume of leased areas. However, it can be stated that the transaction activity has been stable since 2019, as the five-year average is at the level of 48,100 sqm per quarter. Long-term observed activity in the market thus refutes theories of post-COVID stagnation or recession in the office space market.
Most additions were new leases, accounting for 65%, lease renegotiations accounted for 28%, and expansions represented just under 7%. In terms of transaction volume, the professional services sector dominated, however, most area was occupied by the consumer goods sector. It was in this sector that the largest transaction was recorded, with a total area of almost 7,800 sqm.
The overall vacancy rate in Bratislava has decreased by 0.5% to the current 13.75%. The lowest vacancy is still observed in the city centre at 8.62%, followed by the inner city at 10.09% and the Central Business District at 14.90%. The prime rent is slowly increasing. Currently, it is at a level of €18.50/sqm/month, but there is an expectation of its continued growth in the next quarter.
