No new offices completed in Prague during Q3

Robert McLean

#cee, #proptech, #development a #architecture

No new office space hit the market in Prague during the third quarter of this year, with the full-year addition to the city’s office stock expected to be the lowest since 2016. According to figures just released by the Prague Research Forum, the third quarter also saw net absorption hit negative territory (-9,100 sqm). On a more positive not, three new office buildings got underway — Red Court (7,100 sqm) in the Rustonka in Prague 8 along with two new builds in Nová Waltrovka: Legatica (8,300 sqm) and Metalica (18,000 sqm).

Subleases subsided in Q3, with the total volume of space seeking temporary tenants fell 16,300 sqm to 48,700 sqm. PRF writes that some of it was leased, some was taken off the market, while some reverted to standard vacant space.

Gross take-up rose 17% from Q2 to 103,700 sqm, of which 58% was net demand. But it wasn’t anything like a record-setting three months. After all, the largest deal of the quarter was Nationale Nederlanden (6,000 sqm in Zlatý Anděl) and that was nearly twice the size of the second largest deal (3,500 sqm in Hadovka). Vacancy ticked up very slightly by 20 bps to 8.0%, for a total of 298,400 sqm of space that could be had tomorrow. This perhaps explains why prime headline rents are stable at €22.00 to €22,50.

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