Siemens Czech HQ Will Be Staying in City West Office Complex Until Year 2027
CBRE, the world leader in commercial real estate services, facilitated a long-term lease of office space for the Siemens company. The long-term deal will expire in 2027 and until that year, Siemens Czech HQ will be utilizing 24 000 m2 of floorspace in the office buildings owned by CPI Property, which are part of the office complex City West located in a cadastral area of Prague called Stodůlky. This transaction is one of the most important office lease transactions of the Spring season not only for CBRE, but the entire Czech real estate market. The importance of the transaction is only highlighted by the fact it took more than a year of negotiations for the deal to become a reality.
In CBRE, we secure complex services which include so much more than mere facilitation of ordinary leases. The long-term lease of the Siemens Czech headquarters was definitely not an ordinary lease transaction, since part of the negotiated terms for the prolonging of the lease was vast refurbishment and modernisation of the offices and the surrounding environment.We reached a decision with Siemens representatives to prolong the lease only after meticulous and long consideration of many factors.”
Modernisation of our company headquarters in Prague’s Stodůlky will enable us to offer our employees the best possible working environment. And on top of that, the newly installed control system Siemens Desigo CC will significantly lower the energy consumption of both buildings.
The contract includes the lease of 24 000 m2 of floorspace and 400 parking spaces in underground garages. Modernization of the offices also means the work environment for Siemens employees will vastly improve.
In the years 2016 and 2017, a small number of new projects was completed, not even 170 000 m2 of floorspace. On top of that, the occupancy level is on the decline. At the end of 2017, it was at 7,5 % and at the end of the first quarter of 2018, it reached 6,2 %, which represents a ten-year minimum. But when we consider the large number of projects currently under construction, the situation should take a turn for the better in the near future.
The current situation has an effect on the slowly increasing lease prices. According to data of CBRE for Q12018, the average price for the lease of premium office space reached 21,5 EUR for 1 m2 per month in comparison with 20,5 EUR from the end of last year.
According to data about the office real estate market in the Czech Republic, which CBRE regularly analyses and makes public, the year 2018 could bring an improvement thanks to a higher number of office buildings, which are currently under construction and should be completed by the end of the year. In Q12018, three new office buildings with 35 400 m2 of floorspace were opened in Prague and more than 167 000 m2 are currently under construction. Most of the floorspace should be available for rent by the end of the year. However, up to two thirds of the mentioned floorspace already have pre-negotiated tenants.