While in H2 2021, gross take-up on the Brno office market reached 38,100 sqm, which represents a 57% increase in comparison to H1 2021 and a 50% increase y-o-y, Ostrava office market gross take-up in the same time reached 1,600 sqm, representing a drop of 91% compared to H1 2021 and staying stable in a y-o-y comparison. The Regional Research Forum announced the Brno and Ostrava office market figures for H2 2021.
Most of the realized demand for Brno offices was from professional services
The total modern office stock in Brno reached 637,900 sqm in the second half of 2021. Class A properties represented 73% of the modern stock and Class B properties represented the remaining 27%.
In H2 2021, only one refurbished office building, Rašínova 4 (1,500 sqm), was completed. Currently, there are 66,600 sqm of modern office space under construction in eight new projects and one refurbishment of an office building, of which approximately 47% is expected to be completed in 2022. The largest ones are: Nová Zbrojovka D4 (12,000 sqm), Brno Business Park E (12,000 sqm), Šumavská Tower A (11,600 sqm), Centrum Šumavská II (10,300 sqm).
In H2 2021, gross take-up (including renegotiations) reached 38,100 sqm, which represents a 57% increase in comparison to H1 2021 and a 50% increase year-on-year. Professional services had the largest share (23%) in this volume for Brno.
The largest transaction of the second half of 2021 was the renegotiation of PPG Industries Czech Republic in Spielberk Office Centre IQ (4,970 sqm), followed by CB&I’s renegotiation in the same building (4,920 sqm). The third-largest transaction was a new lease by an undisclosed company from the construction and transportation sector in Areál Slatina’s Green Building II (3,790 sqm), followed by Seznam’s new lease in Campus Science Park C (3,700 sqm).
A total of 75,500 sqm of modern office space was vacant at the end of H2 2021. The vacancy rate slightly increased to 11.8%, representing a growth of 50 basis points compared to H1 2021. In H2 2021, prime headline rents in the Brno office market stood between €15 - 16/sqm/month.
Almost 21,000 sqm of office space is under construction in Ostrava
The modern office stock in Ostrava stood at 219,100 sqm in the second half of 2021. Class A properties represented 74% of the modern stock and Class B properties represented the remaining 26%. In H2 2021, there were no reported completions in the Ostrava Office market. There is one office building under construction, Organica (20,600 sq m), with its completion scheduled for 2023.
In H2 2021, gross take-up (including renegotiations) reached 1,600 sqm, representing a drop of 91% compared to H1 2021 and staying stable in a year-on-year comparison.
A total of 13,000 sqm of modern office space was vacant at the end of H2 2021. The vacancy rate decreased to 5.9%, representing a decrease of 56 basis points compared to H1 2021. In H2 2021, prime headline rents in the Ostrava office market slightly increased to €12.5 - 13.0 /sqm/month.
The members of the Regional Research Forum (CBRE, Colliers International, Cushman & Wakefield, JLL and 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.
