Report: Prague Office Recovery by 2011

PRAGUE-A Prague office market recovery is expected at the end of 2010 but until then a moderate slowdown of demand is likely, taking into consideration a certain time-lag behind economic growth, CB Richard Ellis predicts.

The changing structure of demand, with a high proportion of renegotiations and subleases while space optimisation and cost-savings by companies result in some vacated office space, has meant that demand has lagged behind completions in the past year and a half. Insufficient occupier activity together with expected office space coming to the market, much of which is vacant, will result in city-wide vacancy rate increasing slightly throughout 2010. The turning point should be reached at the beginning of 2011 when the vacancy rate is expected to start moving downward.