About the Regional Research Forum
The members of the Regional Research Forum (CBRE, Colliers, Cushman & Wakefield, iO Partners, and Knight Frank) aim to provide clients with consistent, accurate, and transparent data about the regional office markets in the Czech Republic. The members share non-sensitive information and believe that the Regional Research Forum will contribute to the improvement of transparency on the Czech regional office markets.
Brno
- One office building was completed in H2 2023
- Renegotiations and technology companies were driving the office demand
- Vacancy rate in the Brno office market fell to 12.8%
- Prime rents remained stable and ranged between 16.00-16.50 EUR/sq m/month
Brno Office Supply/Stock
The total modern office stock in Brno reached 689,600 sq m in the second half of 2023. A-class properties accounted for 73% of the total modern stock, while B-class properties represented the remaining 27%.
In the second half of 2023, one office project was completed: the reconstruction of the Hrad building (1,500 sq m) in the Nová Zbrojovka project. A total of 26,100 sq m of new space was added to the Brno office market in 2023.
No new office project commenced construction during H2 2023.
There are 55,200 sq m of modern office space under construction across five office projects. The largest ones are:
- Ponávka A4 (16,800 sq m)
- Nová Zbrojovka – D4 (12,000 sq m)
- Titanium X (10,900 sq m)
Of the total office space under construction, approximately 19,500 sq m is expected to be completed in 2024.
Brno major office transactions
The largest transaction in the second half of 2023 was the renegotiation of the manufacturing company Honeywell in Honeywell Office Campus (14,000 sq m) located within CTPark Brno, followed by the renegotiation of the technology company Oracle Czech in Dorn (7,600 sq m). The third largest transaction was the pre-lease of 6,200 sq m in Dornych by an undisclosed tenant from the pharmaceutical sector.
In H2 2023, technology and pharmaceutical companies constituted the majority of the total demand. Renegotiations represented over half of the total demand volume in Brno.
Vacancy
A total of 80,300 sq m of modern office space was vacant at the end of H2 2023. The vacancy rate fell to 12.8%, representing a decrease of 59 basis points compared to the end of 2022.
Rents
In H2 2023, prime headline rents on the Brno office market remained stable at 16.00 – 16.50 EUR/sq m/month. However, some office units can be leased for significantly higher rents.
Lukáš Netolický, Cushman & Wakefield’s Head of Regional Cities, seated in Brno, comments:
“On the Brno market, 2023 brought a significant increase in activity in terms of closed leasing deals: it is the highest market activity in the history of RRF. The key parameter was namely the high number of renegotiations and expansions among largest tenants on the market, and also the increased interest especially from local companies in the fitted-out offices left by other tenants during space reductions.”
Ostrava
- Two office buildings were completed in the second half of 2023
- Vacancy rate in the Ostrava office market increased to 17.1%
- Prime rents on the Ostrava office market remained stable
Ostrava Office Supply/Stock
The modern office stock in Ostrava totalled 239,300 sq m in the second half of 2023. Most of the office buildings (70%) were constructed or renovated more than a decade ago.
Two office buildings were delivered to the market during H2 2023. In the city centre, the developer Contera completed the new administrative building Organica (19,800 sq m); at the time of completion, the building was almost fully occupied. The next completion was the fully renovated building LT Cube2 in Ostrava Poruba with a total office space of 2,600 sq m. Currently, one mixed-use project with a total of 2,500 sq m of office space is being planned for construction.
Ostrava’s major office transactions
The largest transaction in the second half of 2023 was the renegotiation of the manufacturing company Siemens in The Orchard Ostrava (5,200 sq m). Among the largest transactions was also the new lease of Národní Rozvojová Banka in the building Nordica Ostrava (450 sq m).
Vacancy
A total of 41,000 sq m of modern office space was vacant at the end of H2 2023. The vacancy rate increased by 10.1 percentage points year-on-year to 17.1%.
Rents
In H2 2023, prime headline rents on the Ostrava office market remained unchanged at 14.00 – 14.50 EUR/sq m/month.