We have not recorded any new major additions to the stock (Supply) in the first quarter of 2014. Within the 2014 we’re expecting about/approximately 7,000 sq m of new office space distributed amongst the smaller projects. At the same time, by the end of the year (at the turn of 2014/2015) we are expecting delivery of project Westend Gate from the Slovak developer J&T Real Estate (35,000 sq m).

Transactions on the Office space market (Office Take-up)

Transactions that have been concluded in the first quarter of 2014 represent a total amount of approx. 28,068 sq m, which represents an increase of about 5% compared to the previous quarter, and a 40% increase in comparison with the same period last year. 53% of all transactions consisted of new leases and 47% were attributed to renegotiations. We have not recorded any prelease transactions this quarter.

Just as in previous quarters, the majority of transactions closed in Q1 2014 were in units of less than 500 sq m, which represented almost 75% of all transactions closed. Units in the range of 501–1,000 sq m accounted for more than 13% of signed deals and 12% comprised the leases signed for units of 1,001+ sq m.

In the first quarter of 2014, the majority of transactions were signed in the IT sector (12.2%), followed by the Manufacturing sector (11.4%) and Professional Services sector (10.1%).

Office Vacancy

The overall vacancy rate for Bratislava has decreased from 15.21% in the previous quarter to 14.55% at the end of the first quarter of 2014. The lowest vacancy rates recorded were in Bratislava 1 (10.8%), followed by Bratislava 5 (13.3%) and Bratislava 2 (15.1%). Bratislava 3 has significant vacancy at 22.7%.