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Office Market News

Sekyra is starting to build another part of Smíchov. A large pedestrian boulevard and the headquarters of Česká spořitelna will grow here

Construction activity is beginning to move to the desolate southern part of Prague's Smíchov. Developer Sekyra Group is launching the second stage of its extensive project for the new Smíchov City district here. Within a few years, three administrative buildings should be built here, including the new headquarters of Česká spořitelna and a hotel. The private project for a total of 35 billion crowns will be followed up by the city and the Railway Administration, which are working here to modernize the railway and build a new transport terminal. Public investments will reach another fifteen billion crowns.

Companies, offices, banks and media houses deal with moving

The office market is slowly recovering from a deep depression. Managers are looking to more modern workplaces not only to meet future sustainability requirements, but also to entice employees from their homes back into the workplace. Škoda Auto recently moved to new offices, large media houses are changing their addresses, and Česká spořitelna, for example, is already looking at a modern building in Smíchov. Some authorities and public institutions are also looking for a new seat. However, many companies prefer the reconstruction of existing buildings.

The Prague Municipality will move to Wenceslas Square. The city will buy the Komerční banka building

Prague will buy the company VN 42, which owns an office building on the corner of Wenceslas Square and Štěpánská Street, from Komerční banka (KB) for approximately 3.5 billion crowns. The city councilors approved it. The municipality plans to move officials from the Škoda Palace in Jungmannova street to the building, where it is leased until the end of March 2028.

The office and business complex in the center of Prague is being transformed into "Karlák Shopping Square

The rebranding and reconstruction of the building on Karlov náměstí concerns retail and office spaces and architectural modifications with the installation of a new logo and brand identity.

The year 2024 began hopefully. The period of limited investment activities in the commercial real estate market in the Czech Republic is coming to an end

Despite the current weakening of the investment activity in the Central and Eastern European region (CEE) volumes of investment in commercial real estate in the Czech Republic in the first quarter of 2024 recorded a year -on -year increase of 36 %. In total, in this period, capital was invested in the volume of EUR 545 million, dominated mainly by local investors. The yields did not notice any significant movement compared to the previous quarter. According to Colliers' estimates, a leading provider of diversified professional services in the field of commercial real estate and investment administration, the total volume of transactions in 2024 should reach EUR 1.4 billion. This would mean the end of the three -year decline period and the hope that the Czech real estate investment market is reflected from the bottom.

Another hope for a new cancer drug. Sotio from the PPF group already has a third product in the patient testing phase

The largest Czech biotechnology company Sotio has announced that it has passed another milestone in the search for drugs to fight malignant tumors. One of the preparations of the company, which belongs to the PPF financial group, has successfully passed initial tests and is entering the first phase of clinical testing on patients. This is already the third product that Sotio has in one of the phases of human testing. The company is primarily involved in the development of drugs against cancer.

Office construction in Prague slowly comes back to life, the market is being saved by renovations

The market for modern office space in Prague at the end of the 1st quarter of 2024 amounted to approximately 3.91 million m2. The vacancy rate increased slightly to 7.5%, representing approximately 292,000 m2 of vacant office space available for immediate lease. After a long period of inactivity, new speculative construction is now slowly starting to thaw. And despite the long-term growth of rents, Prague remains an attractive and competitive location attracting new investors. This is according to the regular quarterly survey of the office real estate market published by Colliers, a leading provider of diversified professional services in the field of commercial real estate and investment management.

Passerinvest Group, as the first in Prague this year, started the construction of a new administrative or of the Hila multifunctional building in Prague's Brumlovka. It will offer offices, shops and rental apartments.

With the ceremonial knocking of the foundation stone, Passerinvest Group symbolically started the construction of the multi-functional building Hila in Brumlovka in Prague 4. Upon its completion in the spring of 2027, the building will provide a combination of approximately 20,500 m² of offices for rent (2nd to 8th floors), 71 rental housing units (9th to 15th floors) and on the ground floor a commercial area of 2,000 m². All this within one object. The building will also offer spacious terraces for office users and loggias with beautiful views for residents. The Hila building will fully comply with the company's ESG strategy and will thus be equipped with modern technologies, of which, for example, the cooling and heating system with radiant ceilings, which represents the most modern concept of indoor climate control, is worth noting. Thanks to a well-thought-out combination with planned heat pumps, it will be a highly efficient and operationally economical solution. The renowned studio Aulík Fišer architekti is behind the architectural rendering of the project, the construction contractor is the company Gemo. The owner and investor of the building is the Passerinvest Group.

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