Building B in Prague’s BB Centrum has acquired another tenant. This March, ABInBev, the largest brewer in the world, owning brands such as Stella Artois, Leffe and Corona, headquartered its global shared service centre here on an area of more than 7400 m2. The owner and manager of the building is the Passerinvest concern.
The year 2020 closed stores, drove people out of offices and significantly changed conditions in the real estate market. While until last spring, commercial property owners could choose who to rent space to and set prices, now the situation has changed.
A total investment volume of €290 million was transacted in the Czech Republic during the first quarter of 2021, according to Savills latest research. Without the exceptional €1.3 billion Residomo portfolio sale transaction, the investment volume was only down by 8% y-o-y.
Last year, the demand for offices in virtually all European countries fell sharply. Compared to 2019, it decreased by 41% to 9 million m2. This was the lowest volume of realized demand since 2009. According to analysts of the international consulting company BNP Paribas Real Estate, there is already a recovery in this year's tenant activity, but the office market is not expected to recover until 2022. At that time, demand should reach 12.2 mil. m.
The activity of real estate investors fell to the lowest values since 2013 in the first quarter of this year. The owners changed their commercial (and residential) buildings for EUR 310 million. Rather than the effects of covid measures, the result was affected by the lack of quality real estate to buy.
More than a million Czechs work in state administration or state-owned companies. Although the state office market is approximately the same as the market for Prague offices (currently approx. 3.7 million m2), the situation with investments in equipment is diametrically different. The expert jury of the Office of the Year competition spoke about the need for enlightenment among state authorities or companies at last year's meeting, as quality equipment is important for the satisfaction not only of company employees but also of state officials.
• The new tenant is the law firm, Allen & Overy
• The Mississippi house and Missouri Park are scheduled for completion in July
• Both buildings meet not only the standards for WELL Core & Shell and LEED Platinum certifications but also WELL
The Coronavirus epidemic is undoubtedly a real hard cost for businesses. The uncertainty surrounding this crisis is prompting companies to find sources of savings to reduce their costs.
Rent and office management are the second largest expense item for companies after salaries. It is therefore relevant to ask the question of how to reduce the cost of your premises as much as possible and/or match the current needs of space with the current working constraints.
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