Regional Research Forum Presents H1 2017 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 H1 2017.

Brno Office Supply/Stock
Total modern office stock in Brno reached 547,000 sq m in the first half of 2017. A class properties represent 80% of the modern stock and B class properties represent the remaining 20%.

There were three office buildings completed in Brno in the first half of 2017; Šumavská Towers C (8,300 sq m), ROZMARYN office & parking (4,700 sq m) and Technologický Park II build. C (4,300 sq m).  Currently, there is 40,200 sq m of office space under construction, namely Building P (15,000 sq m) in Areál Slatina, project Campus Science Park D&E (13,200 sq m) and Vlněná office park F&G (12,000 sq m). All projects are expected to be completed in 2018.

Brno Office Take-up
In H1 2017, gross take-up (including renegotiations) reached 25,300 sq m which represents 8% decrease when compared to previous half a year and a year-on-year decrease of 21 %.  

The biggest transaction of the first half of 2017 was the new lease of undisclosed tenant in Areál Slatina O (4,100 sq m) followed by new leases in ROZMARYN office & parking (2 300 sq m) and Palác Magnum (1 500 aq m). All tenants of above mentioned deals are also undisclosed.

Vacancy
A total of 53,300 sq m of modern office space was vacant at the end of H1 2017. The vacancy rate dropped to 9.7%, representing a decrease of 2.4 percentage points compared to H2 2016.

Rents

In H1 2017, prime headline rents in the Brno office market increased to 13.50 EUR/ sq m/ month.


The Regional Research forum is pleased to announce the Ostrava Office Market figures for H1 2017.

Ostrava Office Supply/Stock
Modern office stock in Ostrava stood at 214,900 sq m in the first half of 2017. A class properties represent 73% of the modern stock and B class properties represent the remaining 27%.

In H1 2017, one office building was completed; ABC Alfa (6,500 sq m).

Office building Red House (4,500 sq m) is the only project under construction in Ostrava at the moment.

Ostrava Office Take-up
In H1 2017, gross take-up (including renegotiations) reached 6,400 sq m, representing a year-on-year decline by 36% and at the same an increase by 47% compared to H2 2016.

The largest deal in the first half of 2017 was the expansion of ABB (900 sq m) in NOVÁ KAROLÍNA PARK, followed by the new lease of Y soft (690 sq m) which took place in the same building.

Vacancy
A total of 37,900 sq m of modern office space was vacant at the end of H1 2017. The vacancy rate stood at 17.6%, representing a decrease of 2.1 percentage points compared to H2 2016.

Rents

In H1 2017, prime headline rents in the Ostrava office market remained stable at 11.50 EUR/ sq m/ month.