The Prague office market recorded a vacancy rate of 5.65% at the end of Q3 2026, down 11 basis points quarter-on-quarter and 74 basis points year-on-year, according to data published by Prague Research Forum (PRF). Total modern office stock stood at approximately 3.95 million sqm, with no new completions during the quarter. Approximately 222,900 sqm of vacant space was recorded across the city, with the highest vacancy in Prague 10 (12.0%) and Prague 3 (11.1%), and the lowest in Prague 2 (1.2%) and Prague 1 (3.6%).
Office space under construction remained virtually unchanged quarter-on-quarter at approximately 308,900 sqm, though it was 27% higher year-on-year. Prague 5 accounted for the largest share of space under construction at 39%, followed by Prague 4 at 36%. Around 61% of space under construction had already secured tenants. Class A to AAA buildings represented approximately 73% of total modern stock, with AAA-rated projects accounting for around 16%.
Gross take-up, including renegotiated leases and subleases, reached 107,000 sqm in Q3 2026, a decrease of 20% quarter-on-quarter and 41% year-on-year. Renegotiations accounted for 53% of total demand, while new leases represented 30% and expansions 6%. Net take-up, excluding renegotiations and subleases, reached 48,800 sqm, up 28% quarter-on-quarter. Prague 4 led activity with 41% of total volume, followed by Prague 8 (18%) and Prague 5 (15%). Technology companies dominated sector demand with a 28% share, ahead of pharmaceutical and healthcare firms at 11% and professional services at 10%.
The largest disclosed transaction in the quarter was Microsoft's lease renegotiation at the Delta building in Brumlovka, Prague 4, covering 12,800 sqm. Further notable renegotiations included Adastra at Mississippi House in Prague 8 (5,300 sqm) and NET4GAS at Kavčí Hory Office Park in Prague 4 (4,700 sqm). Net absorption was positive at approximately 5,700 sqm.
Prime rents rose in central and inner-city locations, reaching €31.00 to €32.00 per sqm per month in the city centre and €22.50 to €23.50 per sqm per month in inner-city areas, while outer-city rents remained stable at €16.00 to €17.00 per sqm per month. "Low vacancy and rising rents may suggest a strong market, but the composition of leasing activity tells a different story. Renegotiations already dominated in the first half of the year, while gross take-up declined by 41% year-on-year in the third quarter, with renewals still accounting for more than half of total leasing activity. I see the market's ability to generate new relocations as a key indicator of its underlying health. Yet relocation decisions are becoming increasingly challenging for occupiers. As a result, despite the limited supply, we are not seeing a significant market-wide imbalance between demand and supply, but rather selective pressure in specific locations," said Pavel Novák, Head of Office Agency at Savills.
