The key results for Brno

• In total 24,600 sqm of office space was delivered to the market in Brno in H1 2023
• Consumer goods sector dominated lease activities
• Vacancy rate on the Brno office market increased to 14.6%
• Prime rents remained stable and ranged between €16.00-16.50/sqm/month

Brno office supply/stock

The total modern office stock in Brno reached 691,600 sqm in the first half of 2023. A-class properties represented 73% of the total modern stock and B-class properties represented the remaining 27%. In H1 2023, two new office projects were completed: Centrum Šumavská II (13,000 sqm) – an extension of the existing Centrum Šumavská, Šumavská tower (11,600 sqm). In H1 2023, two office buildings started construction: Titanium X (10,900 sqm), Vlněna Office Park K (6,900 sqm). Currently, there are 53,500 sqm of modern office space under construction across five office projects. The largest ones are A4 Ponávka (25,300 sqm), Titanium X (10,900 sqm), Vlněna office park I (8,800 sqm), Vlněna office park K (6,900 sqm). Only one project is scheduled for delivery by the end of 2023, Nová Zbrojovka – D1 (1,500 sqm). Approximately 19,800 sqm of the space under construction is planned to be completed in 2024.

Brno major office transactions

The largest transaction of the first half of 2023 was the renegotiation with the expansion of the online perfumery Notino in Brno Business Park (21,800 sqm), followed by the renegotiation of the technology company Avast in Vlněna Office Park (6,100 sqm). The third largest transaction was a new lease of CGI IT Czech Republic from the IT sector in Brno Business Park (1,300 sqm). More than half of the total demand in Brno was realized by companies from the Consumer Goods sector. Other active companies were from the Technology sector.

Vacancy

A total of 100,600 sqm of modern office space was vacant at the end of H1 2023. The vacancy rate increased to 14.6%, representing an increase of 1.16 percentage points compared to H2 2022.

Rents

In H1 2023, prime headline rents on the Brno office market remained stable at 16.00 - 16.50 €/sqm/month. “The office situation in Brno is allowing tenants a period of good choice on the market. Companies who have a lease expiry approaching can take advantage of interesting conditions in a number of high-quality properties,” added Simon Orr, Director of Advisory & Transactions", Offices in CBRE Czech Republic.

The key results for Ostrava

• One office project is currently under construction, with completion scheduled for 2023.
• Vacancy rate on the Ostrava office market slightly increased to 7.8%
• Prime rents on the Ostrava office market remained stable.

Ostrava office supply/stock

The modern office stock in Ostrava stood at 217,000 sqm in the first half of 2023. Approximately 21% of this stock volume is located in buildings built or refurbished in the last 10 years. During H1 2023, no completed projects were reported on the Ostrava office market. One office building is under construction, namely Organica (19,800 sqm), with its completion scheduled for 2023.

Ostrava major office transactions

The largest transaction in the first half of 2023 was the renegotiation of the finance company Moneta in CTP Park Ostrava (6,500 sqm), followed by the pre-lease of the manufacturing company Stora Enso in Organica (2,500 sqm). The third largest transaction was a new lease by the IT company Škoda Digital in CTP Park Ostrava (2,000 sqm).

Vacancy

A total of 16,900 sqm of modern office space was vacant at the end of H1 2023. The vacancy rate increased slightly to 7.8%, representing an increase of 70 basis points compared to H2 2022. 

Rents

In H1 2023, prime headline rents on the Ostrava office market remained unchanged at €14.00-14.50/sqm/month.