Office construction in Czech regions is slowing down as developers increasingly focus on residential projects due to poor profitability without pre-leases or prime locations, according to a report by Colliers.
The Brno office market ended 2025 with 715,700 sqm of total space and 2.3% year-over-year growth. The vacancy rate rose to 14.4%, representing approximately 103,100 sqm of vacant space. Two new buildings were completed during the year: Skylight X (10,900 sqm) and Botanická Living Lab (10,800 sqm), though both remained largely vacant since completion.
"The outlook for the Brno office market is cautious. The economic situation and market conditions currently favor residential construction over office construction," notes Josef Stanko, Director of Market Research at Colliers. Prime rent rose by only €1 year-over-year to €18 per sqm per month, while total gross demand reached 64,900 sqm.
In Ostrava, the third-largest office market in the country, new construction has practically stopped. The total area of modern office space reached approximately 246,000 sqm by the end of 2025, with vacancy rates stable at around 11%. No new office projects were started or completed during 2025, with only the boutique Václav project under construction.
Outside Prague, Brno and Ostrava, new office development remains sporadic. "Rents for a new project would be at the Ostrava level or lower, which, given today's construction costs, would make it difficult to justify the investment," says Stanko. Local developers are prioritizing residential construction as apartment prices have risen while office rents in regions have stagnated.
Meanwhile, industrial spaces and small business units (SBU) are taking over part of the demand for offices. CTBoxes from CTP, Citysites from Contera, or projects by the Purposia Group can appeal to companies for which a standard office building is unsuitable in terms of both capacity and operations.
