CBRE: Demand for office space this year remains high
CBRE, the world leader in the commercial real estate service sector, has recorded a high demand for office space this year, which follows the trend from 2015 when there was the highest recorded demand for office premises and properties on the local market. The final quarter of last year was the strongest. Emphasis is also placed on ensuring favourable conditions for tenants, the number of whom has also increased. It is still a very advantageous time for companies that are considering new office space or expanding existing ones.
The stable economic situation and strong macroeconomic indicators have a positive impact on the growth of the national economy and the management of local businesses. Currently, positive market developments allow companies to focus on their development, further invest in their employees and the working environment. In recent years, a number of development office projects have been completed, not only in Prague but throughout the Czech Republic. A large number of new office buildings already has LEED or BREEAM certification, which expertly evaluate building sustainability while placing considerable emphasis on environmental aspects of the building. The high quality of available office space and buildings, which has increased significantly in the past year, is a fundamental market condition and the standard continues to rise. Customers expect not only a high level of buildings and interiors, but also low operating costs and good accessibility.
The greatest demand is still seen for quality and lucrative offices in the city centre. Despite the growth in demand, landlords are offering their clients very favourable and incentives, making this the best time to change offices.
Companies have started to expand and extend their existing premises, which we’ve noted mainly in the IT sector. Executives are paying attention to the impact of the work environment on employee performance, and therefore want to improve the quality of their offices, for which there are currently excellent conditions. In addition, we’ve recorded new incoming business.
These favourable conditions for tenants reflect positively on the demand of the whole market. The highest demand for office space was recorded in the fourth quarter of last year. 105,900 sq m of office space was newly leased in the last quarter of 2015 and total take-up (excluding renegotiations) amounted to 272,900 sq m in the whole 2015.
When choosing new offices, it is necessary to take into account a number of factors and the actual moving process is a relatively long and demanding process. Ensuring real favourable conditions is not normally possible using your own internal resources. Consequently, an increasing number of companies are using the services of a commercial real estate agent, similarly to foreign companies. Thanks to their comprehensive knowledge of the market, real estate consultants negotiate not only significantly better leases and contractual terms for owners and developers, but also the entire search process is systematically structured and streamlined, saving clients time and other costs. An analysis of the current situation and the basic draft of the final projects selected is always included in the price.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.