High demand for new premises and steady new supply are pushing the Prague office market vacancy rate down. According to JLL’s latest report, the vacancy rate currently stands at 8.6 %, being one of the lowest levels in the history of the market.
“During the first half of the year, the Prague office market saw the completion of three new administrative projects – Dock in Two, Five and Rustonka R1. The total space delivered to the market amounted to 31,600 sqm which is a result comparable to the whole of 2016, when only 36,200 sqm was completed and delivered to the market. There is still a further 123,400 sqm due to be delivered to the market this year. In total, there is almost 328,000 sqm of office space under construction and due to be completed between 2017 and 2019,” says Valerie Tomanová, JLL Research Analyst.
“Despite the promising supply, it is sometimes difficult to find a space that matches a client’s requirements,” describes Petr Kareš¸ Head of Tenant Representation at JLL and adds: “the supply is often fragmented and it is hard to find larger spaces (over 2,000 sqm) in specific locations. This is why we recommend that our clients start their search for new premises in advance, at least 1.5 years before their current lease ends. This significantly increases the chances of satisfying their requirements. Furthermore, clients also need to prepare themselves for a quicker decision-making process. If they kept the pace set over the last 3-5 years, they would quite likely lose the premises to another interested party.”
“High demand for new premises and steady new supply are pushing the Prague vacancy rate down. Currently, vacancy stands at 8.6 %, being one of the lowest levels in the history of the market”, concludes Valerie Tomanová, JLL Research Analyst.
