The first quarter of this year brought a revival of the Prague office market. Growing demand may encounter a lower availability of new premium spaces in the coming years, as only a smaller number of new projects are currently under construction. This can also affect the currently stabilized price level of rents. Serviced office centers and projects that comply with ESG principles are on the rise. This results from a quarterly market survey carried out by the Colliers company.
The company Colliers, which belongs to the top in the provision of diversified professional services in the field of commercial real estate and investment management, has prepared a unique price map of office space in Prague. The map indicates that for the highest rents, offices are rented at centrally located metro stations such as the Museum or Náměstí Republiky, while the lowest rents are around Petřiny or Náměstí Míru stations.
Scott.Weber Workspace, which operates flexible serviced offices, coworking and event spaces, is expanding. It will offer 830 office spaces in the new locations The Park and Port7.
The Churchill Square office complex in Prague near the main railway station will be completely transferred to the domestic company Českomoravská nemovitstní. She already owns half of the building. The other half belongs to the Lebanese investment group CFH.
Leading Brno developer Domoplan is planning a large-scale construction for four and a half billion crowns near the final stop of the recently completed West Gate tram line. After exiting the "wasteland" one finds only a barren plain here today, but within a few years the multi-functional urban two-block Brixx will grow here with more than four hundred apartments, offices and a top medical workplace. The construction of the project, for which Domoplan has already received planning permission, should begin in the first half of next year.
Rising energy prices and upcoming changes in the mandatory reporting of ESG information, which show the effects of companies' management style on the environment, energy balance and the quality of the working environment, aroused a significantly higher interest of companies in sustainability and dream related areas last year. Specifically, it was confirmed by 67% of more than 500 interviewed investors and tenants of commercial real estate participating in a global survey by the real estate consulting company CBRE. The current facts are inexorable: only 15% of buildings worldwide currently meet the conditions of the so-called Paris Agreement, while 85% of all existing real estate located on the territory of the European Union is to be used even in 2050, when the EU wants to achieve climate neutrality. In the future, it will therefore be necessary to implement a whole series of reconstructions and demanding rebuilds. It is for these reasons that CBRE's latest survey was created, the results of which reveal the main trends that are currently gaining ground in the field of ESG and have a significant impact on the strategic decision-making of companies.
In February, the development and investment group Crestyl appointed Lenka Preslova as its commercial director for commercial real estate. In the newly established position, she became part of the management of Crestyl in the Czech Republic, where she will lead the team dealing with the leasing and management of commercial real estate - both office and retail.
Coworking and flexible offices are one of the few industries that have been significantly boosted by the coronavirus pandemic. Although HubHubu, the operator of two shared spaces in Prague, had its occupancy reduced to 50 percent during the strictest closures, this year it is reporting that it is practically occupied. One of the reasons is the hybrid work style, to which a significant part of companies have reoriented. Instead of startups, flexible offices are increasingly being rented by larger companies as well.
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