Brno

One office building was completed in the second half of 2023

Demand for offices in Brno was driven by renegotiations and technology companies

Vacancy fell to 12.8% year-on-year

The highest achieved rent remained stable at EUR 16.00-16.50 / m² / month

Offer of office space in Brno

The total area of modern office space amounted to a total of 689,600 m² at the end of the second half of 2023. Class A buildings represented 73% of the total area, the remaining 27% were class B offices.

In the second half of 2023, one office project was completed, the complete reconstruction of the Hrad building (1,500 m2) in the Nová Zbrojovka project. A total of 26,100 m2 of new space was added to the Brno office market throughout the year.

During the 2nd half of 2023, the construction of no new office projects was started.

Five projects with a total modern office space of 55,200 m2 are currently under construction, the largest of which are:

Repeat A4 (16,800 m2)
Nová Zbrojovka – D4 (12,000 m2)
Titanium X (10,900 m2)
Of the total volume of office space under construction, approximately 19,500 m2 should be completed in 2024.

The largest realized transactions in Brno

The largest transaction of the second half of 2023 was the renegotiation (renegotiation of the contract) of the production company Honeywell in the Honeywell Office Campus building (14,000 m2), followed by the renegotiation of the technology company Oracle Czech in the Dorn building (7,600 m2). The third largest transaction was the pre-letting of an undisclosed tenant from the pharmaceutical sector in the Dornych building (6,200 m2).

Technological and pharmaceutical companies had the largest share in the total volume of demand in the 2nd half of the year. More than half of the volume of the total realized demand in Brno was represented by renegotiations.

Office vacancies in Brno

At the end of the second half of 2023, there was a total of 80,300 m2 of vacant modern office space in Brno. The vacancy rate fell to 12.8%, down 59 basis points from the end of 2022.

Rent

The highest achieved rent in Brno remained stable in the second half of 2023 and was in the range of EUR 16.00-16.50 per m2 per month.

"The year 2023 brought to the Brno office market a significant increase in activity in terms of closed rental transactions: this is the highest activity on the market during the RRF monitoring period. The key indicator was in particular the large number of renegotiations and expansions of the largest tenants on the market, secondarily the increased interest from among mainly local companies in ready-made offices abandoned by other tenants during space reductions", says Lukáš Netolicky, head of the regional representation of Cushman and Wakefield based in Brno.

Ostrava

Two office buildings were completed in the second half of the year
Ostrava office vacancies rose to 17.1%
The highest achieved rent remained stable
Offer of office space in Ostrava

The total area of modern office space in Ostrava at the end of the second half of 2023 was a total of 239,300 m2. Most of the office buildings (70%) were built or renovated more than ten years ago.

During the 2nd half of 2023, two office buildings were delivered to the market. In the city center, developer Contera completed the new Organica administrative building (19,800 m2), at the time of completion the building was almost fully occupied. After complete reconstruction, the LT Cube2 building in Ostrava Poruba with a total office area of 2,600 m2 was also completed. In the planned construction, one multifunctional project with a total area of 2,500 m2 of office space is currently ready.

The largest realized transaction in Ostrava

The largest transaction of the second half of 2023 was the extension of the lease agreement of the manufacturing company Siemens in The Orchard Ostrava building (5,200 m2). Among the biggest transactions was also the new lease of Národní Rozvojová Banka in the Nordica Ostrava building
(450 m2).

Unoccupied offices in Ostrava

By the end of the second half of 2023, 41,000 m2 of vacant office space was registered in Ostrava. The vacancy rate increased by 10.1 percentage points year-on-year to 17.1%.

Rent

The highest achieved rent in Ostrava in the second half of 2023 remained at the level of 14.00-14.50 euros per m2 per month.