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Office Market News

CEE leading PropTech startup hub is launching sublease alternative to rising 200 000m2 demands.

COVID-19 brings uncertainty to many tenants, and with current social distancing measures in place as well as a majority of companies transitioning to working from home arrangements, the requirements of an office space have been severely impacted.

Prospective small businesses can improve and move to better offices with more favorable conditions

In the last month alone, the vacant office space offered by tenants for sublease has approximately doubled (from 50 to 100,000 m2). This is a unique opportunity, especially for small companies with up to 50 employees, which can now afford prestigious "A" offices commonly intended for larger corporations due to the coronavirus crisis. And under very advantageous conditions, often with a better price or higher flexibility of commitment compared to standard five-year contracts.

CBRE Survey: What do office tenants go through and where do they see opportunities?

Only 18% of the companies surveyed reduced their leased office space and 27% gave up the planned expansion. The pandemic accelerated the onset of new trends. Flexibility is at the heart. 64% of respondents-companies in the Czech Republic and 75% in the CEE region plan to invest in new technologies to support teleworking. 24% of Czech and 32% of Central European representatives of the surveyed companies expect increased interest in the sustainable construction of buildings.

Base boutique co-working offices for the demanding have opened in Prague

The developer Penta Real Estate has announced a competition for coworking offices in Prague in the Churchill building. The winner was Studio Perspektiv, which created a so-called boutique co-working space for the discerning. It is called Base and is the first branch of the planned network.

Companies can start applying for subsidies to develop their own infrastructure for research, development and innovation

The Agency for Entrepreneurship and Innovation, the intermediate body of the Operational Program Enterprise and Innovation for Competitiveness, has started receiving applications for subsidies under the "Calls VII of the Potential Support Program". The aim of the call is to support the establishment and increase of the number of companies with infrastructure for their own research, development, and innovation. It is now possible to obtain up to 50 million CZK for one project. The call was announced on 28th August 2020 by the Ministry of Industry and Trade, which is the managing authority of the OP EIC. The API will accept applications until 23 November 2020. This is the last call of the Potential program in the OP EIC, a total of 1.1 billion crowns has been prepared for applicants.

How are office spaces changing in the post-covid period?

The transition to safer offices does not have to be a leap and the cost of large investments. Even small adjustments and hygiene measures can significantly reduce the risk of the virus spreading.

The public space can also serve as an office. Construction will start in the Nuselský Brewery in a year, says Vacek from Penta

Penta plans to build a new residential development on a brownfield site of almost 32,000 sq. m in Prague Nusle. The total investment should reach CZK 2 billion.

Mississippi House in Karlín is half rented a year before completion

CA Immo has signed a contract with the first tenant in the Mississippi House building in Prague 8, which is currently under construction. The international consulting company Adastra will occupy 7,000 square meters of office space. More than a year before the planned completion, Mississippi House is leased from approximately 50%.

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Jana Hrda

+42 191 916 4778

Tereza Matejkova

+42 021 001 2566


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