"A" OR "B"? - B class still holding its own in Czechia

by   CIJ News iDesk III
2022-08-02   14:40
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The current economy has to deal with a number of negative factors affecting not only our personal but also our working lives. The Covid pandemic and its consequences, the difficult geopolitical circumstances caused by the war in Ukraine, the skyrocketing energy prices, steeply rising inflation – all of this has an effect on the office market as well. Today, their tenants are faced with the question of how big offices they will need in the "new normal" era - and also in which buildings, so that they are able to pay the rent in the rented premises without any problems. In the considerations of tenants, the price-quality ratio is increasingly coming to the fore. When applying this key criterion, it turns out that class "B" offices, although their share of the market for administrative space in Prague is significantly lower than class "A" offices, are definitely not Cinderella. On the contrary – for many tenants, they are now the ideal solution to their needs. The example of the successful Nagano Park administrative complex in Prague 3 can be used to show why "B" offices are and will be in vogue.

"The current situation puts companies requiring regular office staff work - and there are now most of them after the pandemic has subsided - in a difficult position. This is not helped by the fact that most of Prague's offer consists of premium "A" offices (73%), which are becoming unaffordable for many tenants," comments Petr Beneš, director of Geosan Development, which is the developer and manager of the Nagano Park office complex in the wider in the center of Prague in Třebešín. The site, which was built in 1999, was recently modernized by Geosan Development and now provides flexible office and warehouse space with a total lettable area of ​​26,000 m2. Even during the pandemic, Nagano Park maintained an above-average occupancy rate of 96%.

"We believe that our success was ensured not only by a good ratio between the price and quality of the premises and the related services, good transport accessibility and related infrastructure, but also at first glance by the simple fact that we really try to accommodate the tenants. We kept some of them during the pandemic thanks to their relocation within the premises with the aim of saving costs. On the other hand, we extended the premises of several companies. We are also able to be flexible with the currency in which clients pay rent: we accept payments in crowns, which is not quite common these days," says René Bartoník, director of Nagano Park's administration, and adds: "Among the other advantages of Nagano Park are certainly warehouses with area of ​​1,628 m2, which we offer in addition to office space. These are highly sought after by tenants and are now 100% occupied."

The Nagano Park office complex includes four office buildings and a data center. It is located in the commercial locality of Prague 3, near metro station A Želivského. In addition to flexible class "B" office space, it offers warehouse space and a large guarded parking lot, which will also include a charging station for electric cars. Tenants have at their disposal a common reception, two restaurants and a fitness center. Nonstop services of the property manager are a matter of course. Important companies based in Nagano Park include Citibank, Swietelsky, Strojimport, Spadia Lab, Quantcom, Service Equipment for the Ministry of the Interior, Sharp, CETIN and T-mobile.