Prague office market: Supply and take up shrink in Q3

According to the Prague Research Forum, Prague’s office supply is clearly being hit by the crisis, with just 15,800 sqm of class A buildings coming on line in the third quarter of 2009. These were the Factory Office Center F building (7,800 sqm) and building A2 at Futurama Business Park (8,000 sqm).

In terms of take-up, the picture doesn’t get much better, with 45% due to renegotiations. While this is good news for landlords, it won’t give developers much confidence about their ability to move space. More worryingly, vacancy rose to 10.6% (a rise of half a percent), so it wasn’t surprising that the prime rents now being achieved have slipped slightly to between €21 – €22. Subleasing is also on the rise, now accounting for 1.65% of all occupied space in Prague.

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