Brno Office Supply/Stock
The total modern office stock in Brno reached 625,200 sq m in the second half of 2019. A-class properties represented 84% of the modern stock and B-class properties represented the remaining 16%.
There were three office building completions in Brno in the second half of 2019: the refurbishments of Babák Office (4,300 sq m) and Moravák Brno (4,900 sq m), and the newly constructed Zet.office (19,000 sq m). Currently, there is 55,800 sq m of modern office space under construction in six projects, of which approximately 89% is expected to be completed in 2020.
Brno Office Take-up
In H2 2019, gross take-up reached 54,600 sq m (including renegotiations), which represents a 106% increase in comparison with H1 2019 and a stunning 305% increase in a year-on-year perspective.
The largest transaction of the second half of 2019 was the pre-lease of KIWI.COM in Zet.office (10,900 sq m), followed by a new lease of Infosys in Vlněna office park AB (9,000 sq m). These two transactions also marked the largest transactions of 2019.
A total of 64,100 sq m of modern office space was vacant at the end of H2 2019. The vacancy rate decreased to 10.3%, representing a decrease of 140 basis points compared to H1 2019.
In H2 2019, prime headline rents in the Brno office market increased to 15.00 - 16.00 EUR/ sq m/ month.
The Regional Research forum is pleased to announce the Ostrava Office Market figures for H2 2019.
Ostrava Office Supply/Stock
The modern office stock in Ostrava stood at 219,800 sq m in the second half of 2019. A-class properties represented 74% of the modern stock and B class properties represented the remaining 26%.
In H2 2019, there were no reported completions in the Ostrava Office Market. Currently, there is 59,600 sq m in the pipeline.
Ostrava Office Take-up
In H2 2019, gross take-up (including renegotiations) reached 4,100 sq m, representing a year-on-year decrease of 41% and a decrease of 42% compared to H1 2019.
A total of 17,600 sq m of modern office space was vacant at the end of H2 2019. The vacancy rate decreased to 8.0%, representing a decrease of 2.9 percentage points compared to H1 2019.
In H2 2019, prime headline rents in the Ostrava office market stood at 11.50 - 12.00 EUR/ sq m/ month.
Stock: Total completed office space (occupied and vacant), newly built since 1992 or refurbished, A and B class offices, owner occupied and for lease. Public authorities’ buildings and buildings with leasable area lower than 800 sq m are excluded.
New supply: Completed newly built or refurbished buildings that obtained a use permit in the given period.
A-Class Office Building: To earn the A-Class status a building must meet at least 6 out of 7 “Hard Criteria” and 5 out of 7 “Soft Criteria.”
B-Class Office Building: To earn the B-Class a building must meet at least 2 out of 7 “Hard Criteria” and 4 out of 7 “Soft Criteria.”
Take-up: A gross figure representing the total floor space known to have been let or pre-let, sold or pre-sold to tenants or owner-occupiers over a specified period of time. It does not include space that is under offer. A property is taken up when the contract is signed. Total take-up includes renegotiations, lease extension and subleases, net take-up excludes these.
Pre-lease: Active pre-leasing for an office building begins as soon as preliminary design drawings are ready to show to prospective tenants. Pre-leasing occurs until the start of construction.
Vacancy rate: Ratio of physically vacant space in completed buildings on the total stock.
Prime rent: Achieved rents that relate to new prime, high specification units in prime locations.