Search
 

Offices Bloom In Prague

PRAGUE-While a regular magnet for over two million tourists a year the Czech capital of Prague has struggled as a business location. But according to research just released by agency King Sturge all that is starting to change.

By Steve Killick | Updated on September 14, 2001

PRAGUE-The phase of falling rents has come to an end in Prague. Prime modern office rents are achieving DM41 per sq m per month ($97 per sf per annum) in the centre and DM32 per sq m per month ($75 per sf per annum) in the suburbs. Rents reached a peak a few years after the ‘Velvet Revolution’ in 1989 when modern office space first became available.

Subsequently rents fell during the 1990s as more offices were developed and the capital was swamped with accommodation. However, over the last few years, rents for modern offices have remained stable. ‘Modern office rents are now at much more sustainable levels when compared to development costs,’ said Paul Betts, King Sturge partner in charge of Prague.

Supply of modern offices is now relatively low with just 137,860 sq m of space under construction. Demand, by contract, is strong, following the improvement in the economy. Take-up is forecast to be 140,000 sq m in both 2001 and 2002. Consequently, the overall vacancy for new builds is likely to continue to fall from 9.4% to less than 5% in 2002.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.