Regional Research Forum Presents H1 2016 Brno and Ostrava Office Market Data


Introduction
The members of Regional Research Forum – CBRE, Colliers International, Cushman & Wakefield, JLL – aim to provide clients with consistent, accurate and transparent data about the regional office markets in the Czech Republic. The members share non-sensitive information and believe that the Regional Research Forum will contribute to the improvement of transparency on the regional Czech office markets. 

The Regional Research forum is pleased to announce the Brno Office Market figures for H1 2016. 

Brno Office Supply/Stock
Total modern office stock in Brno stood at 484,000 sq m in the first half of 2016. A class properties represent 78% of the modern stock and B class properties represent the remaining 22%.

There were no office buildings completed in Brno in the first half of 2016. There is 75,300 sq m of office space in eight buildings under construction at the moment, the largest projects being Building O (15,200 sq m) and P (15,000 sq m) in Areal Slatina and Campus Science Park C (12,000 sq m). 56,000 sq m of space under construction is expected for completion in 2016.

Brno Office Take-up
In H1 2016, gross take-up (including renegotiations) reached 32,500 sq m which was 8% higher compared to the previous half. Net take-up excluding renegotiations and subleases amounted to 28,800 sq m, which was 15% higher than in the previous half.

The biggest non-confidential transactions of the first half of the year were the pre-lease of Red Hat Czech (4,300 sq m) in Technologický Park II build. C and the new lease of Parfums.cz (4,000 sq m) in Brno Business Park C.

Vacancy
A total of 56,900 sq m of modern office space was vacant at the end of H1 2016. The vacancy rate reached 11.8%, down by 1.9 percentage points on H2 2015.

Rents
In H1 2016, prime headline rents in the Brno office market remained stable at 13 EUR/ sq m/ month .



The Regional Research forum is pleased to announce the Ostrava Office Market figures for H1 2016. 

Ostrava Office Supply/Stock
Modern office stock in Ostrava stood at 208,400 sq m in the first half of 2016. A class properties represent 72% of the modern stock and B class properties represent the remaining 28%.

In H1 2016, no new office building was completed in Ostrava. One office buildings started construction in H1 2016 – Administrativní objekt Red House (11,500 sq m).


Ostrava Office Take-up
In H1 2016, gross take-up (including renegotiations) reached 4,200 sq m, representing a decrease by 69% in comparison to H2 2015. Net take-up excluding renegotiations and subleases was equal as no such transactions were signed.

The largest deal in the first half of the year was the new lease of CCBR Ostrava s.r.o.  (950 sq m) at Nová Karolina Office Park. 

Vacancy
A total of 42,400 sq m of modern office space was vacant at the end of H1 2016. The vacancy rate stood at 20.3%, representing a decrease of 2.4 percentage points compared to H2 2015.

Rents
In H1 2016, prime headline rents in the Ostrava office market remained stable at 11.50 EUR/ sq m/ month.