<div>In Brno, the number of available office spaces is increasing.</div>

Titanium I

Brno - The number of vacant office spaces in Brno is increasing. Companies are saving, and many places have been vacant for more than a year. This is the consensus among analysts contacted by ČTK. According to the Regional Research Forum, which monitors market developments regularly, there were 69,800 m² of vacant office space in Brno in the first half of this year. The vacancy rate reached 16.8 percent, an increase of 0.5 percentage points compared to the end of 2012.
"Demand for offices is low, companies are saving, and many spaces have been vacant for more than a year. The prices for regular office spaces in the city center have fallen to as low as 1,400 crowns per m² per year for larger units. For smaller spaces, the prices hover around 2,000 crowns," stated Gabriela Pokorná from the real estate agency MIG PARTNER.
According to Ondřej Gavlas from Gaute, there is a significant oversupply of office space in Brno. "There is considerable pressure from tenants to reduce rent prices and the possibility of leaving a project after the fixed lease period to another landlord," commented one of the trends in the industry Gavlas.
According to him, companies are also looking for cheaper offices and are moving from more luxurious spaces in newly built centers to lower-class spaces. "We perceive a certain gap in the market as the ongoing lack of office spaces for sale. The only offering of Class A offices for sale in Brno is the AZ Tower project. In the case of interest in lower-class offices, there is practically nothing to offer," Gavlas said.
According to the Regional Research Forum, the total area of modern office spaces in Brno reached 416,000 m² in the first half of the year. Three-quarters of these are higher-class offices. The new ones were created in the AZ Tower skyscraper or in the CTOffice Building 1. An additional 32,000 m² of new office spaces are under construction, and their completion is expected in the second half of the year.
Significant rental transactions during this period included pre-leases by HomeCredit & Airbank and Kentico in the Titanium I project, which is rising near the Brno railway station.
According to analyst Jiří Šimara from the company Cyrrus, the Brno market is currently developing steadily. "The question, however, is how it will cope with the influx of newly completed spaces during the second half of this year. The total area of office spaces will increase by almost eight percent," Šimara stated.