Czech Republic Brno becoming increasingly attractive

Office & mixed-use development

13 December 2022

Opr./edited by ANZ

1 / 2

2 / 2

Brno office market is ready to increase number of tenants and welcome new investors. The city is preparing to expand its office space – it will soon add almost 10,000 sqm to the currently unoccupied 70,900 sqm of modern office space.

Brno has changed over the past two decades. A total of almost 636,000 of office space currently exists in the city thanks to strong growth of companies from the business and IT services and R&D sectors. A total of 74 companies operating in the tech innovation and business services sectors are already based in Brno. They employ almost 35,000 people. This represents 16 pct of the total 239,000 employees working in Brno. According to a survey by the industry association ABSL (Association of Business Service Leaders), 92 pct of Brno's business and IT service centres plan to expand in the next two years, and the majority also expect to increase their office space.

Demand for office space comes not only from established and expanding companies, but also from new investors who have the Czech Republic in their sights as an optimal destination where they can set up their company. For them, Brno is in many ways a more advantageous choice than Prague.

Premium office space rented in Brno is up to 10 euros per sqm cheaper per month than comparable offices in Prague. The average lease period for offices in the South Moravian metropolis is 5 years, which indicates considerable market stability.
Jana Vlková, Colliers

Investors from the business services sector give positive evaluations not only for the city’s central location in the region, but also for the availability of qualified human resources and, compared to the capital, more favourable rental prices and lower employee costs. In their eyes, Brno is the second most sought-after destination in the Czech Republic. Thanks to this, the city currently has the highest proportion of employees working in business and IT services.
Jonathan Appleton, director of the ABSL

According to CZSO (Czech Statistics Office) data, Brno has the highest proportion of workers with a university education among large cities: namely, 42.6 pct. At the same time, around 65,000 university students study in the city.

In total, there is roughly 635,900 sqm of office space in Brno, which makes this city the second largest location in the Czech Republic in this regard. 72 pct of the space ranks in the highest category, A. Roughly 11 pct of office space in Brno is currently vacant and another almost 100,000 sqm is under construction. More than half of the local business and IT service centres are located in the very heart of Brno, where the largest percentage of premium office parks in the city are located.