Regional Research Forum Presents H2 2016 Brno and Ostrava Office Market Data

Introduction
The members of Regional Research Forum – CBRE, Colliers International, Cushman & Wakefield, JLL, Knight Frank – 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 H2 2016. 

Brno Office Supply/Stock
With new completions the total modern office stock in Brno increased to the level of 525,000 sq m in H2 2016. A class properties represent 80% of the modern stock and B class properties represent the remaining 20%.

In H2 2016, four new office buildings with total leasable area of 43,300 were completed in Brno. New supply included CTOffice A2 (7,100 sq m), Dorn (7,600 sq m), Campus Science Park C (13,400 sq m) and Areál Slatina O (15,300 sq m). Currently, there is 44,300 sq m of office space under construction. Out of this number, approximately 17,300 is scheduled for completion in 2017.

Brno Office Take-up
In H2 2016, gross take-up (including renegotiations) reached 27,600 sq m which represents 24% decrease when compared to the previous half a year. The level of renegotiations stood at 5%.

The largest, non-confidential, transactions of H2 2016 were - the new occupation of AT&T (2,200 sq m) in Campus Science Park C, followed by the expansion of Edwards Services (1,400 sq m) in Spielberk Tower I and the renegotiation of Regus (1,300 sq m) in Spielberk Office Centre IQ buildings.

Vacancy
A total of 63,400 sq m of modern office space was vacant at the end of 2016. The vacancy rate slightly increased to 12.1%, up by 0.3 of a percentage point on H1 2016.

Rents
In H2 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 H2 2016. 

Ostrava Office Supply/Stock
Modern office stock in Ostrava remained at 208,400 sq m in H2 2016. A class properties represent 72% of the modern stock and B class properties represent the remaining 28%.

In H2 2016, no new office building was completed in Ostrava. Currently, there are two office projects under construction with planned completion in 2017. New 2017 supply include Administrativní objekt Red House (4,500 sq m) and the refurbishment of ABC Alfa (6,500 sq m).

Ostrava Office Take-up
In H2 2016, gross take-up (including renegotiations) reached ca. 2,700 sq m, representing a decrease by 72% to the H1 figure. Net take-up excluding renegotiations and subleases was equal as no renewals were signed.

The largest deal of H2 2016 was the new occupation of a confidential tenant (1,500 sq m) at Axis Office Park Ostrava. 

Vacancy
A total of 41,000 sq m of modern office space was vacant at the end of 2016. The vacancy rate declined to 19.7%, representing a decrease of 0.6 of a percentage point compared to H1 2016.

Rents
In H2 2016, prime headline rents in the Ostrava office market remained stable at 11.50 EUR/ sq m/ month.