Brno

In the second half of 2021, the Rašínova 4 office building was completed in Brno
The most realized demand for Brno offices was from the consulting services sector
Vacancy on the office market in Brno increased slightly to less than 12%
Offer office space in Brno

The total area of ​​modern office space at the end of the second half of 2021 was a total of 637,900 m2. Class A buildings accounted for a total of 73% of the total area, the remaining 27% were Class B offices.

In the second half of the year, only the reconstruction of the Rašínova 4 office building in size was completed in Brno
1,500 m2.

Eight projects and one reconstruction with a total modern office area of ​​66,600 m2 are currently under construction, the largest of which are:

New Zbrojovka D4 (12,000 m2)
Brno Business Park E (12,000 m2)
Šumava Tower A (11,600 m2)
Sumavska II Center (10,300 m2)

Of the total volume of office space under construction, approximately 47% should be completed in 2022.

Realized demand in Brno

Gross realized demand (including renegotiations) in the second half of 2021 reached 38,100 m2, which represents an increase of 57% compared to the previous half-year and 50% year-on-year. Companies from the consulting services sector had the largest share (23%) in this volume in Brno.

The largest transaction in the second half of 2021 was the renegotiation of PPG Industries Czech Republic in the Spielberg Office Center IQ building (4,970 m2), followed by the renegotiation of CB&I in the Spielberg Office Center IQ building (4,920 m2). The third largest transaction was a new lease from the construction and transportation sector in the Slatina Green Building II complex (3,790 m2), followed by a new lease from Seznam in the Campus Science Park C project (3700 m2).

Vacancy of offices in Brno

A total of 75,500 m2 of modern office space was vacant at the end of the second half of 2021. The vacancy rate increased slightly to 11.8%, an increase of 50 basis points compared to the previous half-year.

Rent

The highest achievable rent in Brno in the second half of 2021 was in the range of 15.00 - 16.00 euros per m2 per month.

Ostrava

Almost 21,000 m2 of office space is under construction in Ostrava
The vacancy rate of the Ostrava offices fell slightly again

Offer office space in Ostrava

The total area of ​​modern office space in Ostrava at the end of the second half of 2021 was total
219,100 m2. Class A office space accounted for 74% of the total area and the remaining 26% was Class B office space.

No new office building was completed during the second half of 2021. The only Organica project with a total area of ​​20,600 m2 of office space planned for completion in 2023 is currently under construction.

Realized demand in Ostrava

Gross realized demand (including renegotiations) reached a total of 1,600 m2 in the second half of 2021, which represents a decline
by 91% compared to the first half of 2021, and remained stable year-on-year.

Vacancy of offices in Ostrava

At the end of the second half of 2021, 13,000 m2 of vacant office space was registered in Ostrava. The vacancy rate fell by 56 basis points compared to its first half of 2021 to 5.9%.

Rent

The highest achievable rent in Ostrava in the second half of 2021 slightly increased to the level of 12.50 - 13.00 euros per m2 per month.

Regionlal Research Forum

Members of the Regional Research Forum - CBRE, Colliers International, Cushman & Wakefield, JLL and Knight Frank - in 2021 reclassified all properties that are currently included in the total area of ​​Brno's modern offices, so that the evaluated criteria better reflect modern trends in real estate and development. Beginning in the first quarter of 2021, members of the Regional Research Forum further decided to monitor the market on a quarterly basis.

Minimum requirements for inclusion in the overall area of ​​modern Class A or Class B offices include:

Completion or reconstruction after 1990
Leasable area of ​​at least 1000 m2
Available units are advertised accordingly
The following main categories with a brief description are included in the property quality assessment:

Technical specifications - how well the property is built and equipped.
Smart technologies - the efficiency of the building, what smart technologies they use and what above-standard building equipment they offer
Location - availability, services and civic amenities near the property
Service and security - how the building is safe and managed
Parking - parking conditions with different requirements for buildings in the city center, in the inner city and in the outer city
Age of the building - completion of the building or last reconstruction
Subjective evaluation - subjective evaluation of members of the Regional Research Forum.

Each of the criteria has subcategories that allow for scoring, leading to a final property score. The maximum values ​​for each category are as follows:

Category Share in overall rating Technical specifications 41% Smart technology 18% Location 9% Service and security 9% Age of building 8% Parking 8% Subjective rating 7%

Attachment

Definition:

Total area: The total area of ​​completed office space (occupied or unoccupied), newly built since 1990 or renovated, class A and B, occupied by the owner or for rent and state administration buildings. Buildings smaller than 1,000 m2 are excluded. New offer: Newly completed or renovated buildings that received a building permit in the given period. Realized demand: Gross area represents the total floor area leased or pre-leased, sold or pre-sold to users for the specified period. It does not contain spaces under the offer. The space is rented if a contract is signed. Total realized demand also includes renegotiations, lease extensions and subleases, net realized demand excludes these transactions. Vacancy rate: The share of physically free space in completed buildings in the total area. Highest rent: Achieved rent for new buildings, high technical quality, in buildings in the best locations. However, there may also be exceptional projects on the market where higher rents are achieved. Sublease: Premises offered for lease by the current tenant, who is contractually bound to lease the premises for a longer period than he actually needs.

Definition

Total area: The total area of ​​completed office space (occupied or unoccupied), newly built since 1992 or renovated, class A and B, occupied by the owner or for rent. State administration buildings are excluded, as well as buildings with an area of ​​less than 800 m2.

New offer: Newly completed or renovated buildings that received a building permit in the given period.

Class A offices: If a building meets at least 6 of the 7 "key criteria" and at least 5 of the 7 "supplementary criteria", it is considered a Class A building.

Class B offices: If a building meets at least 2 of the 7 "key criteria" and at least 4 of the 7 "supplementary criteria", it is considered a Class B building.

Realized demand: Gross area represents the total floor area leased or pre-leased, sold or pre-sold to users for the specified period. It does not contain spaces under the offer. The space is rented if a contract is signed. Total realized demand also includes renegotiations, lease extensions and subleases, net realized demand excludes these transactions.

Pre-lease: Active pre-lease of the building begins after the preliminary design is completed for demonstration to future tenants. Pre-lease is a lease that takes place before construction begins.

Vacancy rate: The share of physically free space in completed buildings in the total area.

Highest rents: Achieved rents for new buildings, high technical quality in buildings in the best locations.