Total modern office stock in Prague exceeded 2.88 million square meters by the end of the first quarter of 2013. A-class properties represent 70% of the modern stock; B-class properties represent the remaining 30%. No new office projects were completed during Q1 2013. The completion of 81,000 sq m of new office space is expected by the end of 2013. Additionally, there has not been started any new office buildings during Q1 2013.
Gross take-up (including renegotiations) in the fourth quarter amounted to 93,200 sq m, which represents an increase of 29% on the previous quarter and 13% increase year on year. The highest volumes of gross take-up were recorded in Prague 1 (32%), Prague 4 (24%) and Prague 5 (19%). The most active sectors were Professional services (30% of gross take-up) followed by IT companies (18%) and the Finance sector (11%). The total share of renegotiations of gross take-up in the first quarter of 2013 reached 43.5%.
Significant Office Leasing Transactions
The most significant transactions of the first quarter of 2013 were the pre-lease of Ernst & Young at Florentinum (9,200 sq m) in Prague 1, renegotiation of CA Technologies (7,200 sq m) at The Park in Prague 4 and the renegotiation of Škofin (6,300 sq m) at Pekařská 6 in Prague 5.
The vacancy rate slightly increased to 13.1% at the end of Q1 2013. Total vacant space amounted to 377,000 sq m. The highest vacancy rates were recorded in Prague 9 (31.2%), Prague 7 (29%) and Prague 6 (17.8%). The lowest vacancy rates were recorded in Prague 10 (6.2%), Prague 4 (6.5%) and Prague 3 (8.3%).
In Q1 2013 prime headline rents remained stable in the city centre with a range of 20.00 – 21.00 €/ sq m/ month. In the inner city, prime rents remained between 15.00 and 17.50 €/ sq m/ month. Prime rents in the outer city ranged between 13.00 and 14.50 €/ sq m/ month.