The area of coworking spaces in Prague increases, further expansion is hindered by insufficient construction

"The coworking market in Prague is continuously developing, recently the consolidation of larger players has been especially noticeable. Local providers such as Scott & Weber or Worklounge are expanding the most. foreign companies, for which Prague is not yet a key market, tend to hold back. Expansion takes place both by opening new locations, but also by absorbing smaller providers with one or two branches," says Jaromír Sachunský, Head of Research at Procházka & Partners.

For a long time, the most attractive coworking center in Europe is London, where these spaces make up over 10% of the total office space. Coworking is also popular in the Netherlands, where employees largely work part-time and have little need for a permanent workplace. With 3% of coworking spaces, Prague is on the same level as Warsaw or Budapest.

Among the key decisive factors for the use of coworking services are, in particular, the reduction of initial costs for building office space and greater flexibility of the lease agreement. At the same time, employers can use and change the size of the premises according to current needs or offer employees a more diverse work environment. Several companies from the IT sector used coworking options when entering a new market, for example the American companies Pure Storage or SentinelOne. Both companies have already moved from coworking spaces to their own offices, where they will have space for greater expansion.

"Abroad, long-term clients of coworking centers are often even the largest multinational corporations, which are able to rent the entire space of several thousand square meters at once. In our country, this approach is rather exceptional, but for example, Microsoft uses such spaces within the Brumlovka administrative park, where it also rents its own offices on a long-term basis," adds Jaromír Sachunský.

The current stagnation in the construction of new office buildings may be an obstacle to further growth in Prague. With the limited amount of new office buildings in recent times, it is expected that if providers want to expand their activities, they will have to focus on existing properties or premises under construction. If there is too much delay, there may be no new premises in attractive locations for the next two years.

Source:// remspace