In the second half of last year, gross take-up decreased in the two largest regional office markets of the Czech Republic. The Regional Research forum announced the Brno and Ostrava office market figures for H2 2018.
Brno
Total modern office stock in Brno reached 583,400 sqm in the second half of 2018. Class A properties represented 82% of the modern stock and Class B properties represented the remaining 18%.
There were two new office buildings completed in Brno in the second half of 2018: CTOffice A3 (6,700 sqm) and Vlněna Office Park H (6,500 sqm). Currently, there is 75,200 sqm of office space under construction in seven projects of which approximately 60,000 sqm is expected to be completed by the end of 2019.
In H2 2018, gross take-up (including renegotiations) reached 13,600 sqm, which represents a 70% decrease in comparison with the previous half a year and a year-on-year decrease of 54%.
The biggest transaction of the second half of 2018 was the pre-lease of Oracle in Vlněna Office Park H (6,500 sqm) followed by the new lease of 2K Czech in Areál Slatina O (1,700 sqm).
A total of 56,000 sqm of modern office space was vacant at the end of H2 2018. The vacancy rate slightly increased to 9.6%, representing an increase of 0.8 percentage points compared to H1 2018.
In H2 2018, prime headline rents in the Brno office market increased to €14.50 / sqm / month.
Ostrava
Modern office stock in Ostrava stood at 213,400 sqm in the second half of 2018. Class A properties represented 73% of the modern stock and Class B properties represented the remaining 27%.
In H2 2018, no new office building was completed in Ostrava. Currently, there are two office buildings within one project under construction with planned completion in 2019: Smart Innovation Center A (5,500 sqm) and Smart Innovation Center B (4,500 sqm).
In H2 2018, gross take-up (including renegotiations) reached 6,900 sqm, representing a year-on-year decrease by 51% and also a decrease by 54% compared to H1 2018.
The largest deal in the second half of 2018 was the expansion of Continental company in CTOffice building C (650 sqm), followed by the renegotiation of B&A in The Orchard Ostrava building 3 (600 sqm).
A total of 19,600 sqm of modern office space was vacant at the end of H2 2018. The vacancy rate dropped to 9.2%, representing a decrease of 2.5 percentage points compared to H1 2018.
In H2 2018, prime headline rents in the Ostrava office market increased to vary at a level of €11.50 - €12.00 / 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.
