The Prague office market continued to show signs of growth in the second quarter of 2025, according to data released by the Prague Research Forum. The total volume of modern office stock in Prague reached 3.94 million square meters by the end of the quarter, with 74% classified as Class A buildings and 19% meeting the highest AAA standards. New completions in Q2 2025 were limited, with just two refurbished buildings—NR7 (4,500 sqm) and VN62 (2,100 sqm), both in Prague 1—delivered during the quarter. Despite the modest completions, construction activity accelerated. Four new projects broke ground: three in Prague 8 (including the refurbishment of Danube House and new buildings for Creditas HQ and Vydrovka) and one in Prague 5 (River Bridge Office Hub). As a result, the total office space under construction rose to 212,600 sqm, marking a 23% increase from the previous quarter. However, only a small portion—approximately 11,300 sqm—is expected to be completed in 2025. Gross office take-up in Q2 reached 164,800 sqm, reflecting an 87% increase from the previous quarter, although slightly down from the same period in 2024, which had been boosted by a single 75,000 sqm transaction. Owner-occupier deals played a significant role, driving both gross and net take-up. Net take-up totalled 110,300 sqm, with 56% stemming from owner-occupied spaces. The most active submarkets were Prague 5, accounting for 39% of gross take-up, followed by Prague 8 with 26% and Prague 4 with 11%. The energy and extractives sector was the largest driver of demand, making up 27% of total leasing volume, followed by the finance sector with 19%. Among the major transactions, ČEZ signed an owner-occupation deal for nearly 44,200 sqm at its planned headquarters in the Smíchov City complex in Prague 5. Creditas also secured over 16,800 sqm for its future headquarters in the Rohan City development in Prague 8. Additional notable transactions included a 6,600 sqm lease renewal by a financial tenant at Zlatý Anděl in Prague 5 and Pure Storage’s lease renegotiation and expansion at Amazon Court in Prague 8. Net absorption during the second quarter was positive at 23,800 sqm. The vacancy rate declined to 6.57%, a drop of 43 basis points from the previous quarter. Total vacant space across the city stood at 259,000 sqm. Prague 4 and Prague 5 recorded the highest volumes of available space, while Prague 2 and Prague 6 had the lowest. The highest vacancy rates were seen in Prague 3 (13.2%) and Prague 9 (12.6%), with the lowest in Prague 2 (2.0%) and Prague 8 (3.9%). Prime headline rents in the city centre remained steady at €29.00–30.00 per sqm per month. Rents in inner-city locations rose slightly to €19.50–20.50, while outer-city rents stood at €15.50–16.50. Alongside headline rents, landlords are offering higher fit-out contributions and other incentives to account for rising construction costs. Simon Orr, Director in A&T-Offices at CBRE, noted that sustained construction in the owner-occupier segment and early signs of speculative development support a positive medium- to long-term outlook. He observed growing rents in several suburban areas and a narrowing gap between prime and new-build projects. Orr expects short-term renegotiations to continue, particularly among larger tenants. Source: Prague Research Forum