CBRE marks 25 years in the Czech Republic: Evolution of commercial real estate

CBRE, a global leader in commercial real estate services, marks 25 years of operations in the Czech Republic. Over this period, the country’s commercial real estate sector has transformed dramatically, evolving into a mature, competitive market that attracts both domestic and international investors.

From Offices to Diverse Investment Portfolios
In its early years, the Czech commercial real estate market focused heavily on office properties. However, as the market developed, other sectors—such as retail, industrial and logistics, and even emerging asset classes like student housing and medical facilities—began to capture investor interest.

“Over the past quarter-century, we’ve witnessed pivotal moments, such as the Czech Republic’s entry into the EU in 2004, which boosted investor confidence, and the resilience shown during the 2008 financial crisis. These events shaped the robust market we see today,” said Jakub Stanislav, Head of Investment Properties at CBRE.

While peak investment years like 2016, 2017, and 2019 saw annual transactions exceeding €3 billion, the market now stabilizes at an average of €1.9 billion per year, supported by growing interest in sustainable and alternative investments.

Office Market: Adapting to New Work Models
Since CBRE established its Czech branch in 1999, Prague’s office market has tripled in size, expanding from 1.3 million sq m to 3.9 million sq m today. The pandemic reshaped workplace dynamics, accelerating the adoption of hybrid work models and sparking demand for flexible office spaces.

“The vacancy rate in Prague stands at a low 8.1%, the best among CEE capitals. Future growth will be driven by technological innovation, employee well-being, and sustainability,” said Helena Hemrová, Head of A&T Office at CBRE.

CBRE has played a key role in securing spaces for major clients, including Raiffeisenbank, Siemens, and Seznam.cz, contributing to the development of prominent office hubs like Pankrác and Karlín.

Retail Market: From Hypermarkets to E-Commerce
The Czech retail landscape has grown eightfold in the last 25 years, with shopping center spaces now totaling 2.6 million sq m. The market transitioned from hypermarkets to integrated shopping and entertainment hubs.

“E-commerce and digitization are redefining retail. While shopping center footfall remains slightly below pre-pandemic levels, sales have surpassed 2019 figures, partly due to inflation,” noted Jan Janáček, Head of A&T Retail.

CBRE has been instrumental in the expansion of global brands like Samsung, Versace, and Ralph Lauren into the Czech market, solidifying the country’s position as a retail hotspot.

Industrial and Logistics: An E-Commerce Catalyst
The Czech industrial and logistics sector has grown from 502 km of highways in 1999 to 1,388 km today, creating a foundation for a 12.1 million sq m leasable market. EU integration and foreign investment, particularly from Germany and South Korea, have driven this expansion.

“The pandemic sparked unprecedented demand for logistics space. While the market is normalizing, it remains strong, with growing interest from manufacturing companies,” said Jan Hřivnacký, Head of Industrial Leasing.

CBRE facilitated the development of key logistics hubs near Prague, Brno, and Ostrava, and brokered major transactions for developers like Panattoni and P3.

The Next Chapter
Looking ahead, sustainability, technology, and flexibility are expected to shape the Czech real estate landscape. As CBRE celebrates its 25-year milestone, its contributions to the sector underscore its role in driving innovation and growth in one of Central Europe’s most dynamic markets.

Source: CBRE Czech Republic