Office completions in Q3 put upward pressure on vacancy in Prague, finds CBRE’s latest market report.
Highlights inlcude:
• The Prague letting market remained robust in Q3 2008, and activity grew by 14% over the Q2 level. A total of 87 lease contracts were signed, with an average deal size of around 830 sq m.
• Despite this robust demand, office vacancy increased to 8.6%, a quarter-on-quarter jump of more than 3 percentage points. New development completions drove the increase in vacancy as 116,000 sq m was completed in the third quarter. The equivalent of almost 5% of the modern stock, this is the highest quarterly completions in the past eight years.
• With over 60% of new deliveries unoccupied, and the economic outlook worsening – vacancy is unlikely to erode fast and the rate will hover around 7-8% in the medium-term.
Please click here to view the report or open the attached file below.
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