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Articles - sublet

Prochazka & Partners: Two thirds of tenants reconsider the traditional model of office operation. Half is waiting for the end of the contract

Prochazka & Partners follows up its spring client research on the future and use of offices. The survey, which takes place during the second lockdown, which the Czech Republic is now facing, was attended by almost 100 companies with a floor area of over 350 thousand. m2 (approximately one tenth of the Prague market). The company most often solves the current crisis by looking for a subtenant (16.5%), reducing office space (11.5%) or negotiating a lease on more favorable terms (8.2%). On the contrary, 9.8% of respondents are thriving and expanding despite the crisis. The rest (54.1%) then waits for the end of the lease, as current conditions prevent them from resolving the situation more effectively.

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.
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