Professional service providers, financial and insurance companies are growing their business activities in the Czech Republic supported by a solid economic situation in the country. This has been reflected by expansions of those already well established as well as the newcomers settling in on the Czech market.
This trend is best illustrated by the office relocation by TMF Czech of nearly 1,600 sqm to the Kateřinská 40 building, as well as the consolidation of Colonnade into 1,800 sqm in Gemini in Prague 4 - Pankrác. In both cases, BNP Paribas Real Estate represented the two companies as the exclusive agent in the lease negotiation process.
The final choice of TMF Group was made in favour of office buildings that benefit from a good location and accessibility to public transport, recognised as attractive for both the company employees and clients. The client opted for Kateřinská 40, a building that offers a great location as well as a spectacular view of the historical heart of Prague from the rooftop private terraces. Kateřinská 40 was selected out of 20 alternative options available during the selection process.
The current challenging situation in the Czech office market, where demand for office space has substantially surpassed the supply, resulted in long and complex negotiations on both properties. For Kateřinská 40 it was the last available unit to lease to secure 100% occupancy in the property.
“For Colonnade, the decision was easier due to an already existing long-term relationship with the landlord of Gemini, who offered a very flexible approach and attractive financial conditions. The high concentration of financial service companies in the Pankrác area was also a driver for the final decision," explains Lena Popova, Head of Tenant Representation, Office Agency at BNP Paribas Real Estate.
Negotiations for Colonnade expansion were very complex starting from securing the required area, followed by accepting the fit-out equipment from a previous tenant including liabilities and VAT depreciation that would have an impact on the landlord, the former tenant and the new tenant.
"Both of these transactions show strong confidence in the business sector in the Czech economy, and the expansionist mood of companies is likely to prevail this year despite the expected economic slowdown," explains Lenka Šindelářová, Head of Research & Consultancy at BNP Paribas Real Estate APM CR.
