The first quarter of this year brought a revival of the Prague office market. Growing demand may encounter a lower availability of new premium spaces in the coming years, as only a smaller number of new projects are currently under construction. This can also affect the currently stabilized price level of rents. Serviced office centers and projects that comply with ESG principles are on the rise. This results from a quarterly market survey carried out by the Colliers company.
Passerinvest Group, a.s. , a leading development and investment company on the Czech market, has successfully completed the issue of PSG 7.60/28 bonds. The bonds were issued for 5 years with a total subscribed volume of CZK 750 million. The bonds were issued with a coupon rate of 7.60% p.a. and quarterly payment of coupons.
It will become the vibrant center of Prague and at the same time connect the impassable areas between Florence and Hybernská Street. This is promised by the company Penta Real Estate, which has completed the rough construction of a complex designed by London studio Zaha Hadid on a neglected brownfield near Masaryk railway station. The craftsmen now have to fine-tune the interiors and the facade, which will be covered by greenery and modified aluminum panels by the summer.
Rising energy prices and upcoming changes in the mandatory reporting of ESG information, which show the effects of companies' management style on the environment, energy balance and the quality of the working environment, aroused a significantly higher interest of companies in sustainability and dream related areas last year. Specifically, it was confirmed by 67% of more than 500 interviewed investors and tenants of commercial real estate participating in a global survey by the real estate consulting company CBRE. The current facts are inexorable: only 15% of buildings worldwide currently meet the conditions of the so-called Paris Agreement, while 85% of all existing real estate located on the territory of the European Union is to be used even in 2050, when the EU wants to achieve climate neutrality. In the future, it will therefore be necessary to implement a whole series of reconstructions and demanding rebuilds. It is for these reasons that CBRE's latest survey was created, the results of which reveal the main trends that are currently gaining ground in the field of ESG and have a significant impact on the strategic decision-making of companies.
Scott.Weber Workspace, which operates flexible serviced offices, coworking and event spaces, is expanding. In the new locations of The Park and Port7, it will offer 830 office spaces with an area of 7,322 m2, in addition to expanding the area in Atrium Flóra by another whole floor. The Park in Chodov is a campus of office buildings with exceptionally rich civic amenities. Due to the nature of the companies located there, the location is referred to as "Prague's Silicon Valley". On the contrary, Port7 is a newly built complex in Holešovice, which is considered to be the new Prague waterfront. And it is, for example, the only place in Prague that can be reached by seven modes of transport. The Atrium Flóra concept, where offices are located in a shopping center building, is being expanded by another floor due to its great popularity.
The vacancy created by the demolition of a vacant apartment building on the corner of Milady Horákové and Koliště streets in the center of Brno will be filled in two years by an administrative building with a roof garden. The development company Trikaya named the project Landmark and wants to start construction in the first half of this year. This was stated by a representative of the development company for ČTK.
Palác Dunaj to welcome prestigious majority tenants. Zeitgeist Asset Management is behind the rapidly-progressing reconstruction of this iconic constructivist building in the centre of Prague on Národní třída. It has concluded a rental contract for 2,600 sq m of premium space with the European Commission Representation and European Parliament Liaison Office. The new premises will become a hub to obtain up-to-date information on what is happening in the EU, for gatherings to discuss European issues, and to further learning on the European Union. The interactive "Europa experience" centre to the general public will be a new feature, with the aim to bringing Europe closer to citizens in an attractive and engaging way.
CBRE, a world leader in commercial real estate services, summarizes the results of an extensive comparative analysis focused on the benefits of green certifications in office leasing. On a sample of 58 million m2 of office space and 44,500 lease agreements concluded in 18 European countries, including the Czech Republic, it shows the value that green certifications such as BREEAM or LEED bring to owners of administrative properties. Based on a comparison of several key indicators, CBRE has shown that the average vacancy rate in certified buildings is almost 2% lower than in non-certified competition, while the price per square meter of leased space is, on the contrary, 5.5% higher. The comparison of individual European markets is also interesting, from which the Prague one emerges as mature. Owners of sustainable buildings here achieve very good results in the long term.
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