In H2 2019, gross take-up on the Brno office market reached 54,600 sqm (up by 303% y-o-y), whereas in Ostrava gross take-up reached 4,100 sqm, representing a y-o-y decrease of 41%. The Regional Research forum announced the Brno and Ostrava office market figures for H2 2019.
Strong increase in demand in Brno
The total modern office stock in Brno reached 625,200 sqm in the second half of 2019. Class A properties represented 84% of the modern stock and Class B properties represented the remaining 16%. There were three office building completions in Brno in the second half of 2019: the refurbishments of Babák Office (4,300 sqm) and Moravák Brno (4,900 sqm), and the newly constructed Zet.office (19,000 sqm). Currently, there is 55,800 sqm of modern office space under construction in six projects, of which approximately 89% is expected to be completed in 2020.
In H2 2019, gross take-up reached 54,600 sqm (including renegotiations), which represents a 106% increase in comparison with H1 2019 and a stunning 305% increase in a year-on-year perspective.
The largest transaction of the second half of 2019 was the pre-lease of KIWI.COM in Zet.office (10,900 sqm), followed by a new lease of Infosys in Vlněna office park AB (9,000 sqm). These two transactions also marked the largest transactions of 2019.
A total of 64,100 sqm of modern office space was vacant at the end of H2 2019. The vacancy rate decreased to 10.3%, representing a decrease of 140 basis points compared to H1 2019.
In H2 2019, prime headline rents in the Brno office market increased to €15-16 / sqm/ month.
More in the pipeline in Ostrava
The modern office stock in Ostrava stood at 219,800 sqm in the second half of 2019. Class A properties represented 74% of the modern stock and Class B properties represented the remaining 26%. In H2 2019, there were no reported completions in the Ostrava Office Market. Currently, there is 59,600 sqm in the pipeline.
In H2 2019, gross take-up (including renegotiations) reached 4,100 sqm, representing a year-on-year decrease of 41% and a decrease of 42% compared to H1 2019.
A total of 17,600 sqm of modern office space was vacant at the end of H2 2019. The vacancy rate decreased to 8.0%, representing a decrease of 2.9 percentage points compared to H1 2019.
In H2 2019, prime headline rents in the Ostrava office market stood at €11.5-12 / 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.
