Czech Republic Brno and Ostrava market overview

The members of the RRF are CBRE, Colliers, Cushman & Wakefield, iO Partners and Knight Frank. JLL has entered into a partnership agreement with iO Partners in the Czech Republic, as of 1 July 2023. RRF aims to provide clients with consistent, accurate and transparent data about the regional office markets in the Czech Republic.

Brno

In total 24,600 sqm of office space was delivered to the market in Brno in H1 2023, and the total modern office stock reached 691,600 sqm. A-class properties represented 73 pct it.

In H1 2023, two new office projects were completed, Centrum Šumavská II (13,000 sqm) and Šumavská tower (11,600 sqm) and two office buildings started construction – Titanium X (10,900 sqm) and Vlněna Office Park K (6,900 sqm). Currently, there are 53,500 sqm of modern office space under construction across five office projects. Only one project is scheduled for delivery by the end of 2023: Nová Zbrojovka (1,500 sqm). Approx. 19,800 sqm of the space under construction is planned to be completed in 2024.

The largest transaction of H1 of 2023 was the renegotiation with expansion of the online parfumery Notino in Brno Business Park (21,800 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.

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 pct, representing an increase of 1.16 pp compared to H2 of 2022. Prime headline rents on the Brno office market remained stable at 16.00-16.50 EUR/sqm/month.

Ostrava

The modern office stock in Ostrava stood at 217,000 sqm in H1 of 2023. Approx. 21 pct 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. Only one office building is under construction, Organica (19,800 sqm), with its completion scheduled for 2023.

The largest transaction in H1 of 2023 was the renegotiation of the finance company Moneta in CTP Park Ostrava (6,500 sqm). 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 pct. Prime headline rents remained unchanged at the level of 14.00-14.50 EUR/sqm/month.