56,000 sqm of furnished office space available in Prague, vacated by home office companies

by   CIJ News iDesk III
2023-09-21   11:03
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More than 56,000 sqm of fully equipped offices are currently available for immediate lease in Prague. These are mainly spaces that their previous tenants have vacated due to moving to new premises or switching to part-time work from home. These offices could relieve the pressure on the lack of vacant office space in new buildings that Prague is currently facing, according to real estate company Cushman & Wakefield.

The size of the office market in Prague at the end of the second quarter was approximately 3.85 million sqm and 143,600 sqm was under construction, according to consultancy Colliers. Office vacancy was 279,600 sqm. Prague 8 is the most desirable with a vacancy rate below four per cent and 24,400 sqm vacant in Karlín.

"Many companies are reducing the number of work from home jobs as they expand and continue to lease unused space until their leases expire. Our offering now includes around 50,000 sqm of office space that can be moved into almost immediately," said Radka Novak, Head of Office Leasing for Cushman & Wakefield's CEE region.

Construction of new office space has not started in Prague for more than a year. Experts have previously told ČTK that office construction in Prague is not worthwhile due to the cost of office equipment in addition to expensive construction work and energy. It is costly due to environmental and social sustainability (ESG) requirements and the demand for high-end technological equipment from interested parties. Recent office completions in Prague include the Masaryčka project in Prague 1 and Port7 in Holešovice.

In the context of the continuing trend of working from home, Colliers says that desk sharing is also increasingly popular in Czech offices in the post-covenant era. Companies are thus reducing the costs of traditional office layouts and prefer to invest in shared relaxation or networking spaces, up to half as much.

Source: Colliers, Cushman & Wakefield and CTK