Not only housing is more expensive in the Czech Republic, office rents are also growing significantly in the Czech Republic
For the first time in four years, owners of modern office buildings can afford to increase their rents. The owners of logistics and shopping centers are in a similar situation. The reason is high demand.
“There is an analogy to apartments, which in some parts of Prague contain a double-digit rate. For commercial buildings, we predict growth above inflation expectations of two to five percent, “said Lenka Šindelářová, head of research at the consulting company. BNP Paribas Real Estate.
Fee growth is strong especially in important business centers. “The high activity of tenants and the newly completed space in the shortage of the year created suitable for rent growth. We have actually noticed this in the last few months, although only in certain localities. In principle, this is mainly the locality of Pankrác, “said Radka Novak, who in the consulting company Cushman & Wakefield leads the office team.
The words of real estate agents are confirmed by the developers themselves. “Due to the declining vacancy rate and still very high demand from tenants, the pressure on initial incentives has eased and space has been created for rent growth. This is noticeable mainly in established locations, “said Alexandra Tomášková, director of leasing at the development company Real estate Skanska. In trophy offices, the monthly rent of the building reaches 23 euros per square meter.
In premium administrative centers, rents again reached over twenty euros per square meter and month. That is, to the level where it was last in 2013. Rents are also rising in retail and logistics, according to an analysis by BNP Paribas Real Estate. To the cards this development to investors in commercial real estate.
According to the head of the Czech branch of BNP Paribas Real Estate, Stewart Thomson, collecting higher rents will help speed up the return on investment at a time when the prices of all properties are rising and yields are therefore falling.