New supply in 2008 achieved a historical record
The overall completions in 2008 achieved a record amount of 323,100 sq.m.
Prague – 14th January – According to the last survey of CB Richard Ellis, the amount of modern office space in Prague currently totals ca. 2,5 million sq m. With 91,000 sq m of modern office space completed in Q4 2008, the overall completions in 2008 achieved a record amount of 323,100 sq m.
The most significant completions in 2008 were:
• City Tower – 43,800 sq m (Prague 4)
• Kavci Hory Office Park – 36,800 sq m (Prague 4)
• Gemini B – 15,900 sq m (Prague 4)
• Palladium – 19,500 sq m (Prague 1)
Despite lower take-up of 51,000 sq m in Q4, 2008 as whole proved very strong with 260,300 sq m leased which was close to the historically strongest year 2006 which saw take-up of 285,500 sq m.
The major transactions closed in 2008 were:
• Raiffeisen Bank – 17,500 sq m (City Tower)
• Siemens – 24,000 sq m (City West)
• Ceska Sporitelna – 12,700 sq m (Trianon)
Jan Lovětínský – Head of Office Agency at CB Richard Ellis comments on rents: „Prague prime office rents remained stable in all submarkets in Q4 2008 in comparison to Q3 2008. With regard to the City Centre, we witnessed a rental correction in Q3 2008 with the prime rent increasing to the current level of EUR23/sq m/month. We believe that current demand is not sufficient to push prime rents higher in the first half of 2009.”