In H1 2018, gross take-up on the office markets of Brno and Ostrava reached 45,600 sqm and 18,900 sqm, respectively, representing a significant yearly increase in both cities.The Regional Research Forum announced the Brno and Ostrava office market figures for H1 2018.
Brno
Total modern office stock in Brno reached 570,300 sqm in the first half of 2018. Class A properties represented 82% of the modern stock and Class B properties represented the remaining 18%.
There were two new office buildings completed in Brno in the first half of 2018: Campus Science Park DE (13,300 sqm) and Vlněna Office Park FG (12,400 sqm). Currently, there is 63,500 sqm of office space under construction in six projects of which approximately 24,900 sqm is expected to be completed by the end of 2018.
In H1 2018, gross take-up (including renegotiations) reached 45,600 sqm, which represents a 55% increase in comparison with the previous half a year and a year-on-year increase of 80 %.
The biggest transaction of the first half of 2018 was the pre-lease of Moravia IT in Vlněna Office Park AB (8,500 sqm) followed by the renegotiation of AT&T in Campus Science Park C (8,000 sqm) and the renegotiation of Monster in Spielberk Office Centre Villa H (2,400 sqm).
A total of 50,200 sqm of modern office space was vacant at the end of H1 2018. The vacancy rate reached 8.8%, representing an increase of 1.5 percentage points compared to H2 2017.
In H1 2018, prime headline rents in the Brno office market increased to €14.00-14.50 / sqm / month.
Ostrava
Modern office stock in Ostrava stood at 213,400 sqm in the first half of 2018. Class A properties represented 73% of the modern stock and Class B properties represented the remaining 27%.
In H1 2018, no new office building was completed in Ostrava. Currently, there is one office project under construction with planned completion in 2018: office building Smart Innovation Center (5,500 sqm).
In H1 2018, gross take-up (including renegotiations) reached 18,900 sqm, representing a year-on-year increase of 197% and also an increase by 33% compared to H2 2017.
The largest deal in the first half of 2018 was the renegotiation of OKIN BPS company in Orchard Ostrava (7,300 sqm), followed by the renegotiation of Česká spořitelna (2,600 sqm), which took place in the same office complex.
A total of 25,000 sqm of modern office space was vacant at the end of H1 2018. The vacancy rate dropped to 11.7%, representing a decrease of 1.6 percentage points compared to H2 2017.
In H1 2018, prime headline rents in the Ostrava office market remained stable at €11. 50 / sqm / month.
The members of Regional Research Forum – CBRE, Colliers International, Cushman & Wakefield, JLL, Knight Frank – aim to provide clients with consistent, accurate and transparent data about the regional office markets in the Czech Republic. The members share non-sensitive information and believe that the Regional Research Forum will contribute to the improvement of transparency on the regional Czech office markets.
