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.
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.
-Colliers predicts a new revolution in office occupancy, which will see businesses balance collective in person collaboration with focused remote working opportunities –
According to the Prague Research Forum, the office leasing teams (Tenant Representation and Office Agency) of JLL mediated a record breaking 109,059 sqm of office space transactions on the Prague market. This total consists of 61,740 sqm mediated by the Tenant representation team and 47,319 sqm mediated by the Landlord representation team. Both teams transacted the highest volumes and achieved the largest market shares amongst all real estate consultancy companies on the Czech market.
Corporate real estate (CRE) investment within Central and Eastern Europe (CEE) increased in Q3 by 14%, to a record €2.297 billion, with total yearly volume up 6% according to the most recent report on CEE property investment from CBRE.
Europe’s prime office market vacancy rate is expected to fall back to its 2009 level by the end of 2016 and then to continue declining over the rest of the decade, according to global real estate advisor, CBRE. In Europe’s major cities, office development is not keeping pace with growing demand driven by improving employment trends and almost all key office markets are expected to show falling vacancy rates and accelerated rental growth over the next five years.
According to the study of the consultancy firm Cushman & Wakefield London’s West End is the world’s most expensive office market for the third consecutive year. To rent one metre squared of office space here costs over EUR 2,300 annually. Hong Kong came second place (EUR 1,636 sq m/annually) followed by New York third (EUR 1,162 sq m/annually).
The SEE region offers investment possibilities across such countries as Serbia, Croatia and Romania with the office and industrial sectors providing potentially higher returns with increased risk than the more established but increasingly competitive markets in Central and Western Europe. Although one of the major obstacles to investment market development is the limited supply of office and industrial investment grade product despite tenant demand.
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