OFFICE MARKET HIGHLIGHTS

• Total modern office stock remained slightly above 3.9 million sq m at the end of 2023. In the Prague market, ten buildings (including one refurbishment) in seven locations were completed during 2023. The annual new supply came to 98,400 sq m, the highest in the last three years but still 28% below the five-year annual average*. Apart from the refurbishment of one smaller building, no new office project construction was launched throughout the whole year.
• The office vacancy rate mildly fluctuated during 2023 and closed the year at 7.2%, the second lowest since Q4 2020 (and a 50 bps y-o-y decline). Thus, Prague had 280,700 sq m of vacant office space spread across 195 buildings.
• Total leasing activity reached 525,300 sq m in 2023, only 3% below the previous year and 18% above the five-year average*. Compared to the pre-covid five-year average, tenant activity in 2023 was 11% higher. Net take-up, on the other hand, dropped by 17% y-o-y and totalled 238,900 sq m in 2023, staying a quarter below the pre-pandemic fiveyear average (and 7% below the average for the last five years*).
• Net absorption showed positive values in 2023 and reached 127,000 sq m and surpassed the previous year's result (72,200 sq m).

*) 2018 - 2022 average

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