The supply of flexible offices in the Czech Republic stands currently stands at 133,000 sqm and is forecast to continue growing through at least 2024. In its newest study, JLL writes that larger corporations make up many of the new clients, providing serious rental income to operators (since they sign longer leases and need large spaces). IWG reports that up to corporates now make up to 75% of leases in their Spaces centers are with multinational corporations.
“Other operators like Impact Hub or WorkLounge continue to base their business on smaller and medium-sized companies, often individuals/freelancers,” says Kamila Breen (JLL). “This group can often account for up to 90% of members and it requires real flexibility in terms of lease terms.”
Most operators agree that demand for closed offices rose steeply after the pandemic, and that demand for single-occupany offices is now rising. “Customers currently demand the minimum space, the shortest possible lease, and the lowest commitment,” says Breen. “Shorter relocation times for flexi centres, and therefore shorter decision times, also play a big role in the selection of new offices.”
There are 76 flexible office centers in Prague offering 103,300 sqm, with another 12 located in Brno offering 11,500 sqm. Pilsen offers another 6, but they provide just 1,900 sqm of space. HB Reavis announced it would be closing its two centers in Prague in ARA Palace and on Na Příkopě, but Scott Weber will open two new ones in The Park building in Prague, and in the new Port7 project by Skanska in Prague 7.
Also in ThePrime
