Brno's office stock reached 635,900 sqm in the first half of 2022 and 75,300 sqm is being built there. At the same time, Ostrava's office stock has 219,100 sqm and builts 21,000 sqm of offices. None of these regional metropolises had finished a new office building in the first half of this year. In both localities, prime rents increased reflecting the general pressure on prices in new developments, reports the Regional Research Forum.
Key findings for Brno:
- No new office building was finished in H1, one project commenced construction
- IT companies and Professional services took the largest share of gross take-up
- The vacancy rate in the Brno office market decreased to 11.1%
- Prime rents increased, reflecting the general pressure on prices in new developments
Brno office supply and stock
The total modern office stock in Brno reached 635,900 sqm in the first half of 2022. A-class properties represented 72% of the total modern stock and B-class properties represented the remaining 28%. In H1 2022, no building was completed. All of the scheduled completions were postponed to the upcoming months.
Currently, there is 75,300 sqm of modern office space under construction in eight new projects and one refurbishment of an office building. The largest are: Brno Business Park E (13,200 sqm) , Nová Zbrojovka D4 (12,000 sqm), Šumavská Tower A (11,600 sqm), Centrum Šumavská II (10,300 sqm). Approximately 32,800 sqm of the space under construction is scheduled for delivery in 2022.
Brno office take-up
In H1 2022, gross take-up (including renegotiations) reached 31,100 sqm, which represents a 20% decrease in comparison to H2 2021 and a 28% increase year-on-year. IT companies (57%) and Professional services (11%) had the largest share of the total volume in H1 2022.
The largest transaction of the first half of 2022 was the renegotiation of the IT company FNZ in CPI Rašínova (7,000 sqm), followed by the renegotiation of an undisclosed IT company in Brno Business Park (3,600 sqm). The third largest transaction was a new lease of the KPMG professional services company in Vlněna Office Park CD (1,800 sqm).
Vacancy and rents
A total of 70,900 sqm of modern office space was vacant at the end of H1 2022. The vacancy rate decreased to 11.1%, representing a drop of 51 basis points compared to H2 2021.
In H1 2022, prime headline rents in the Brno office market increased and currently stand between €16.00-16.50/sqm/month.
Key findings for Ostrava:
- Almost 21,000 sqm of office space is under construction in Ostrava
- The vacancy rate in the Ostrava office market increased to 8.3%
- Prime rents increased, reflecting the general pressure on prices in new developments
Ostrava office supply/stock
The modern office stock in Ostrava stood at 219,100 sqm in the first half of 2022. Only approximately 34% of the stock volume is located in buildings built or refurbished in the last 10 years. In H1 2022, there were no reported completions in the Ostrava office market. There is one office building under construction, Organica (20,600 sqm), with its completion scheduled for 2023.
Ostrava office take-up
In H1 2022, gross take-up (including renegotiations) reached 5,400 sqm, representing a decrease of 71% in a year-on-year comparison. New leases represented only 10% of gross take-up.
Vacancy and rents
A total of 18,100 sqm of modern office space was vacant at the end of H1 2022. The vacancy rate increased to 8.3%, representing an increase of 231 basis points compared to H2 2021.
In H1 2022, prime headline rents in the Ostrava office market slightly increased to 13.00 - 13.50 €/sqm/month.
