Gross take-up (including renegotiations and subleases) on the Prague office market in the first quarter of 2018 amounted to 85,700 sqm, representing a decrease of 51% compared to the previous quarter and a decrease of 19% in year-on-year comparison. The Prague Research Forum announced the office market figures for Q1 2018.
At the end of Q1 2018, the total modern office stock in Prague stood at 3,357,500 sqm. The ratio of Class A modern stock to Class B modern stock was approximately 71%. Top quality AAA class properties accounted for 18% of the total office stock.
In Q1 2018, a total of 38,700 sqm of office space was delivered, including these buildings: Visionary (20,500 sqm) in Prague 7, City West A1 (9,300 sqm) in Prague 5, Nekázanka 11 (5,600 sqm) and Mango Building (3,300 sqm) in Prague 1.
There is currently ca. 334,200 sqm of office space under construction in Prague with scheduled completion between 2018 and 2019. In Q1 2018, five projects commenced construction, including these buildings: VN47 (14,100 sqm) in Prague 1, Rustonka R3 (11,300 sqm), Rustonka R4 (13,200 sqm), Praga Studios (10,600 sqm) and Praga Office&Garden (2,100 sqm), all in Prague 8.
Gross take-up (including renegotiations and subleases) in the first quarter of 2018 amounted to 85,700 sqm, representing a decrease of 51% compared to the previous quarter and a decrease of 19% in year-on-year comparison. The highest volume of gross take-up was recorded in Prague 1 (28.7%), Prague 4 (25.3%) and Prague 8 (18.8%). IT companies accounted for the largest share of gross take-up (14.7%), followed by Professional services sector (13.2%) and Pharmaceutical companies (13.1%). The total share of renegotiations in the first quarter accounted for 24% of gross take-up, which was the same level compared to previous quarter. New leases and pre-leases accounted for 62% of the total gross take-up.
The largest non-confidential transactions of the first quarter of 2018 were the renegotiation and expansion of Albastros Media (3,100 sqm) in Na Pankráci 30 in Prague 4, followed by the pre-lease of HubHub (2,700 sqm) in Palác ARA in Prague 1 and the renegotiation of Fio banka (2,500 sqm) in Millennium in Prague 1.
In Q1 2018, the vacancy rate further decreased by 1.1 percentage points to 6.2% compared to the previous quarter. Total vacant space amounted to 207,300 sqm. The highest vacancy rates were recorded in Prague 3 (11.1%) and Prague 5 (7.7%). Conversely, the lowest vacancy rates were recorded in Prague 2 (3.6%), Prague 10 (3.9%) and Prague 8 (4.6%).
Prime headline rents in the city centre slightly increased compared to previous quarter and stood between €20.00 and €21.50 / sqm / month. Prime headline rents in the inner city varied between €15.00 and €16.50 / sqm / month and in the outer city between €13.50 and €15.00 / sqm / month.
The members of the Prague Research Forum – CBRE, Colliers International, Cushman & Wakefield, JLL, Knight Frank – share non-sensitive information with the aim of providing clients with consistent, accurate and transparent data about the Prague office market. The RICS supports activities of the Prague Research Forum.
