PragueConnect.cz - Real Estate

PragueConnect.cz Real Estate articles in cooperation with Prague.TV Real Estate, if you are looking for a mortgage to finance your next house or flat purchase in Prague - visit Prague.TV Mortgage, don't miss out on historical low Czech mortgage rates!

Colliers International sees an opportunity in modernization of older office buildings

Demand for modern offices strong in 2015

Colliers International today announced the latest data on the Prague office market for 2015, which also predicts future trends.

According to Colliers International, 2015 experiences high demand for modern office buildings. Of the total take-up amounting to 447,000 square meters, 90% represented the demand for class A buildings. Currently, there is more than 3.2 million square meters of office space on the market, of which 69.5% are class A offices. Some 190,600 square meters of office space was completed in 2015, which is 26% above the ten-year average. In 2016, Colliers International expects a significant decline; the market will be supplied only with 32,600 square meters of office space, the least since 1993.

Colliers predicts that the demand for class A office space will continue. However the age profile of many of those offices counted within class A stock is increasing. Currently, 53% of offices on the market are more than 10 years old.  According to Colliers International, it will be necessary to fundamentally refurbish and rejuvenate a number of office buildings to stand a chance of being successfully released.

“Given that in 2016 only a small number of offices will be completed, we see an opportunity for landlords to modernize older office properties,” said Ondrej Vlk, Head of Research at Colliers International Czech Republic. “This trend will become even more pronounced. Buildings completed in the 90’s and in the years from 2000-2005 will sooner or later need a complete reconstruction of its technology, plant & machinery, common areas and office interiors, in order to be able to compete with leases of offices in modern, newly constructed buildings. Owners who begin the recovery now can significantly improve their occupancy rates, achieve a fair market rent and in turn increase the value of the asset.”


PragueConnect.cz - Prague, 18.02.2016 (Press Release by colliers.cz 

 
 
 
 
Prague-Stay.com offers luxury Prague hotel accommodation with a top selection of boutique and design hotels. All of the attractive accommodation choices are located in the city center of Praguein such sought after locations as Old Town, Lesser Town and NewTown. The majority of boutique and design hotels in Prague featured in the fine selection are situated in renovated historical buildings that have been lovingly restored with modern standards. A select few design hotels in Prague featured on Prague-Stay.com are situated in modern acclaimed structures.
Upcoming Events