After years of depression, the domestic real estate market is starting to revive. In recent months, the Komerční banka building on Wenceslas Square, the Palác Pardubice shopping center have already been sold, and there is even a gem for sale in Na Příkopě Street: the Myslbek commercial and office building.
In three years, the surroundings of Smíchovský nádraží in Prague will change beyond recognition. Today, there is a huge construction site where construction is taking place in parallel under the direction of private and public investors. Their representatives officially presented the next stage of the Smíchov City project on Wednesday.
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 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.
After moving from Žižkov at the end of last year, the National Film Archive (NFA) settled in Nuslí. The company Profil Nábytek in tandem with the architectural studio Schwestern created an attractive working environment for employees in the building near Botič, opposite the Theater Na Fidlovačka. The uniqueness of the new interiors lies, among other things, in the fact that if NFA moves again in the future, the modular furniture can continue to be used according to needs and current dispositions.
Prague Research Forum announces data on the office market in Prague for Q1 2024:
Almost 71,300 m2 of office space is under construction, of which 82% will be completed this year.
In the first quarter of 2024, one office building was completed – Roztyly Plaza (21,700 m2). Thus, 80,300 m2 should be completed for the entire year 2024, significantly less than the long-term average.
Gross realized demand reached a total of 108,700 m2 in the first quarter of 2024, a year-on-year decrease of 19%.
Net demand was 46,000 m2 in the same period, 38% less than in the same period last year.
Net absorption was positive in the first quarter and reached 8,900 m2.
The vacancy rate increased 30 basis points from the previous quarter
to 7.5%.
The highest achievable rent increased slightly to EUR 27.50-28.00 per square meter per month.
This year, the city of Ostrava completed the preparation of a new strategic plan for the development of Ostrava with a view to 2030. The main vision is fundamentally unchanged compared to the previous plans. The efforts to connect the city internally and with the world and the revival of the historic core remain among the priorities. Closely related to this is the construction of new buildings that Ostrava will be proud of and which in a wider context will benefit the general public. However, the local government cannot satisfy such construction alone. Therefore, private investors become important drivers of urban development. Only an open and cooperative approach from both sides has the potential to meaningfully develop the city - with ecologically sustainable construction and valuable architecture.
The five largest rental transactions on the Prague office market last year were renegotiations, i.e. renegotiations of existing contracts. It is a route that companies whose leases are coming to an end are increasingly preferring before moving to new premises. The high costs of office equipment, the so-called fit out, which Prague has the highest in the region of Central and Eastern Europe and comparable to, for example, Paris, also contribute to this. Last year in Prague, they averaged 1,252 euros per square meter, which is an 8% year-on-year increase. The real estate consulting company Cushman & Wakefield provides an analysis of office equipment costs in its annual EMEA Fit Out Cost Guide.
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