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Office Market News

Developers of office buildings in Prague have changed their deadlines

Up to 700,000 m2 of new offices could be added to Prague by 2025. Currently, about a third of this volume is in the construction phase. However, due to the prevailing slowdown in demand and the growth of vacancy in both existing and new office space, many developers are adjusting their plans: they are postponing the start of construction and slowing down implementation. Others are considering the future use of projects from purely administrative to a mix of office, residential and retail space.

Building B welcomes new tenant - the Centre of Shared and Technology Services of the world’s largest brewer, ABInBev

Building B in Prague’s BB Centrum has acquired another tenant. This March, ABInBev, the largest brewer in the world, owning brands such as Stella Artois, Leffe and Corona, headquartered its global shared service centre here on an area of more than 7400 m2. The owner and manager of the building is the Passerinvest concern.

Nothing is more expensive than a free meter of shop or office

The year 2020 closed stores, drove people out of offices and significantly changed conditions in the real estate market. While until last spring, commercial property owners could choose who to rent space to and set prices, now the situation has changed.

Czech year on year investment volume falls by only 8%

A total investment volume of €290 million was transacted in the Czech Republic during the first quarter of 2021, according to Savills latest research. Without the exceptional €1.3 billion Residomo portfolio sale transaction, the investment volume was only down by 8% y-o-y.

Safely to the offices: AFI Europe is the first in the country to introduce a unique system that eliminates airborne viruses with 99.8% efficiency against SARS-COV-2

The developer AFI Europe, which has so far implemented three phases of the Classic 7 Business Park administrative center in the field of office real estate, AFI Karlín, AFI Vokovice and AFI City 1, has decided to take a major step in the fight against the coronavirus pandemic and in protecting its tenants. It is newly installing a unique system of Global Plasma Solutions (hereinafter referred to as GPS) in the common areas of its office buildings, whose patented technology based on bipolar plasma ionization effectively eliminates bacteria and viruses in the interior of buildings, including elevators. For SARS-COV-2, tests have even shown 99.8% efficacy. The same system is already used abroad, for example, by the White House - the seat of American presidents in Washington, Harvard University or Google.

The need for offices will remain, but the space will be reduced

Last year, the demand for offices in virtually all European countries fell sharply. Compared to 2019, it decreased by 41% to 9 million m2. This was the lowest volume of realized demand since 2009. According to analysts of the international consulting company BNP Paribas Real Estate, there is already a recovery in this year's tenant activity, but the office market is not expected to recover until 2022. At that time, demand should reach 12.2 mil. m.

A science and technology park is being established in Pilsen for almost 600 million - to keep talents in the region

Dirt, cables, holes and dust everywhere. Robot manufacturers and developers are enthusiastic about the premises located in the newly built TechTower science and technology park in Pilsen. At least according to the words of Luďek Šantory, director of the Information Technology Administration of the City of Pilsen, under which the project falls. This is a two-storey space of the original boiler room in which the explosion occurred. This has created an ideal place for developers, which provides them with real conditions.

Real estate investors are looking for opportunities in the regions

The activity of real estate investors fell to the lowest values since 2013 in the first quarter of this year. The owners changed their commercial (and residential) buildings for EUR 310 million. Rather than the effects of covid measures, the result was affected by the lack of quality real estate to buy.

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Jana Hrda

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