ARTICLES LABELLED WITH TAG Prague

BMO Real Estate Partners announced the purchase of a high end department store in Prague, which is occupied by Van Graaf, on behalf of its pan-European retail property investment fund. BMO Real Estate Partners acquired the building from MTK Developments, a Vienna-based European real estate firm specialising in value-add investments.

Prologis has begun construction of a new 14,477 sqm speculative facility at Prologis Park Prague-Airport. The expected completion is for the first quarter of 2018.

Prologis has begun construction of a new 23,710 square metre build-to-suit facility at Prologis Park Prague-Rudna for VAFO PRAHA, the Czech family-owned pet food producer. With construction of Building 19, the park will be fully developed and will comprise almost 250,000 square meters of distribution space.

Cushman & Wakefield have newly become the manager of two Class A office buildings: Keystone in Prague 8 and Smíchov Gate in Prague 5. Both properties are situated in locations popular on the office market where lease volumes have been the highest this year. Prague 5 accounted for 16% of the total volume and Prague 8 for 15%.

Skanska invests €27 million in the office project Praga Studios in Prague. The seven-floor building will offer a total leasable area of about 12,000 square meters. Construction has begun and the office building is scheduled for completion in Q2 2019.

Free office space is dwindling in the Czech Republic. The office vacancy rate in Brno, as well as in Prague, has slipped below 10%. Both cities experience the lowest rate of vacant offices in the last decade. Brno recorded a sharp decline by 2.4 percentage points in H1 2017, while in the capital demand totalled 153,500 sqm in Q2 2017, up 45% on the previous quarter and 36.9% year-on-year. Overall, more than 370 deals were closed in Prague in H1 2017, many of which were pre-leases. In contrast, in Brno there was an 8% drop in lettings compared to H2 2016.

Skanska has acquired the Key office project in Prague’s Pankrác district from ČSAD Praha Holding for an undisclosed sum. The developer plans to start construction works before year-end.

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.

Savills has been appointed by Immofinanz to property manage a portfolio of four office buildings in Prague. The portfolio includes myhive Pankrác House, Jindrřišská 16, Jungmannova 15 and Airport Business Center, accommodating over 70 tenants including: OMD Czech, GrECo JLT, Customs Office Prague, CPL Jobs and others. 

Gross take-up on the Prague office market in the second quarter of 2017 amounted to 153,500 sqm, representing an increase of 45.0% compared to the previous quarter and an increase of 36.9% in year-on-year comparison. The Prague Research Forum announced the office market figures for Q2 2017.