OFFICE MARKET HIGHLIGHTS

• The modern office stock in Prague saw only a slight increase during Q32024, remaining just above 3.95 million sq m.
• In the first nine months of 2024, 69,500 sq m of new office space was completed, marking a 29% decrease compared to the same period in2023.
• Since the start of the year, Prague’s office vacancy rate has risen from 7.4% to 8.1%, the highest level recorded so far this year. This vacancy rate represents 318,200 sq m of immediately available office spaceand is 78 bps higher than the same period in 2023.
• Total leasing activity for the first three quarters reached 458,100 sq m, a y-o-y increase of 27%. Renegotiations of existing leases accounted for over 49% of the gross take-up, similar to the same period last year.
• Net demand also rose by 26% y-o-y, totalling 222,800 sq m in the first three quarters. Thanks to the ČS transaction, the financial sector has been the most active, representing 44% of year-to-date net demand.
• Headline rents for Class A offices stabilized in both central Prague and the outskirts, with a slight increase observed in the wider city centre.

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