Czech office market has a new association

Czech Republic

Czech office market has a new association


A new association has been created to track and monitor the office market in Prague. The Czech Office Market Association (COMA) will gather data and track trends, analysing and commenting on their findings for the public. International real estate consultancy BNP Paribas Real Estate Czech Republic and Prague-based consultancy OFFICE HUNTERS are the founding members.

We want to provide comprehensive and transparent data on the office property market performance. We will publish reports on a quarterly basis

Lenka Šindelářová, Head of Research & Consultancy at BNP Paribas Real Estate APM ČR

In our platform, we would like to focus on older office properties as they are undergoing significant development along with the traditionally monitored A & B class stock

Filip Veselý, Director of HUNTERS OFFICE

The information collected, classified and analysed by both founding members is important for developers, investors and tenants alike. COMA, utilising data on hundreds of transactions, is able to identify emerging trends on the domestic property market on a quarterly basis.
COMA processed Prague’s office data for the first half of 2017. Only 33,000 sq m of new offices were completed in Prague last year. This year, developers announced the completion of projects with a total area around 170,000 sq m. In the second quarter, two buildings were completed - the Five by Skanska (13,400 sq m) and Rustonka 1 (11,200 sq m) building from J&T.

There is also a significant increase
in the refurbishment of older office buildings, in addition to new projects. This is a clear trend for the future due to the lack of prepared projects in the established office locations

Filip Veselý, Director of HUNTERS OFFICE

At the end of June, the total A and B class office space area in Prague was 3.2 million sq m, of which A-class buildings hold 70% and B-class buildings 30%. In the course of the second quarter, net absorption of vacant office space is high at around 70,000 sq m, therefore the vacancy declined to 8.2%.

The most important newly concluded transactions were the Moneta Money Bank lease in BB Centre A and the lease of Accenture in the Visionary building in Prague 7, which is in the construction phase.

Accenture lease show that the developers and thereafter tenants are moving to new locations within Prague that have not yet belonged to established office zones

Lenka Šindelářová, Head of Research & Consultancy at BNP Paribas Real Estate APM ČR

COMA recorded an increase in the prime headline rents in the city centre and also in some other location with lower vacancies, due to the high tenant’s interest in recent months. Prime headline rent stands at 19-21 EUR/sq m/month. The association expects that rents in the city centre will also have a slight increase this year. It already records rents above the above mentioned levels on some buildings.

This year, we do not expect a dramatic increase in vacancy even in older buildings. Many of these have increased their attractiveness by investing into interior and technical equipment that reflects in the rising interest of tenants. However, it depends very much on the location and flexibility of the owner to except the tenants’ individual requirements

Lenka Šindelářová, Head of Research & Consultancy at BNP Paribas Real Estate APM ČR

“Companies, while relocating or expanding, are often interested in locations such as Prague’s city centre, Smichov, Karlín or Holešovice”, says Filip Vesely. Requirements for older offices typically ranges up to 500 sq m and comes mostly from the IT sector. "We also register several larger requirements over 10,000 sq m on the market, which could be realized this year, thus contributing to the high take-up", concluded Lenka Sindelářová of BNP Paribas Real Estate.


Summary data for the first half of 2017

Czechy Praga.PNG

Prime headline rent in the second quarter of 2017:

Czechy Praga 2.PNG

Average asking rent for the A-class building for the first half of 2017:

Czechy Praga 3.PNG
Czech Office Market Association (COMA) was established by real estate consulting companies BNP Paribas Real Estate and Office Hunters in 2017. Their goal is collecting and analysing data from the office space market. This press release is the property of COMA Association and may not be copied, reproduced and disseminated in any form or by any means, as part or whole without the COMA as the source of information. The information contained in this publication has been obtained from sources considered to be trusted. COMA does not take responsibility for the damage or loss caused by any unintentional misstatement in this report.

Copy as a Plain Text


Related Stories
Larry Young appointed head of BNP Paribas Real Estate's "International Investment Group"


Larry Young, 41 years old, has been appointed head of BNP Paribas Real Estate’s “International Investment Group”, reporting directly to Thierry Laroue-Pont, Chief Executive Officer of BNP Paribas Real Estate. He takes over from Etienne Prongué, Deputy CEO of BNP Paribas Real Estate UK since September 1, 2017.
BNP Paribas Real Estate Poland to be in charge of Centrum Franowo in Poznań


A scheme from the portfolio of IKEA Centres Polska S.A. will for the first time be managed externally. Centrum Franowo, completed within 15 months and delivered to the market at the end of September this year, comprises 15 000 sqm GLA, out of which 7 500 sqm on level 0 is dedicated to retail and services, while the remaining 7 500 sqm on level +1 will be used for offices.
BNP Paribas Real Estate Hungary with a PM Instruction for milestone student house in Budapest


BNP Paribas Real Estate Hungary won the property management mandate in a tender process organized for MILESTONE, a top class Student house located in Budapest. The appx. 15.000 sqm building is the first large-scale, privately owned, purpose-built student residence in Hungary, with 1.000 sqm retail area and with 400+ single bed en-suite rooms offering high quality accommodation for international and Hungarian students. On one hand MILESTONE Budapest student house is a modern and innovative development offering exclusive services, on the other hand the investment has a significant value creation impact in the heart of the 9th district.
Frigo Logistics and Longway Polska sign leases for Masovia


A logistics operator specializing in distribution of deep-frozen goods has leased nearly 1 200 sqm of deep-frozen warehousing space and 150 sqm of office space in the P3 Błonie logistics park. In turn, Longway Poland, the owner of the popular bicycle brand Karbon, has gone for Pruszkowskie Centrum Dystrybucyjne, where it will be taking up more than 1 400 sqm of warehouse space and 300 sqm of office and staff rest and refreshment space. Both of the above transactions were completed with the support of consultants from the Industrial and Logistics Department at BNP Paribas Real Estate Poland.

Diamante Plaza ponownie dostępne dla najemców

W imieniu właściciela budynku – czołowej hiszpańskiej firmy budowlanej Aldesa – BNP Paribas Real Estate Poland, jako agent wyłączny rozpoczęło rekomercjalizację powierzchni biurowych klasy A w budynku Diamante Plaza w Krakowie.