Medical tech, biotech and pharmaceutical companies strong players in office market (CZ)

Medtronic, Novartis, Genzyme, Bristol-Myers Squibb, ConvaTec, Biogen Idec, Merck, and now PPD – international property consultants DTZ made a total of 8 transactions over the past 20 months for companies from the healthcare sector. This corresponds to 44% of total transactions in this sub-segment and moves DTZ to the position of leader in representing users of office space.

The latest project is the selection of new headquarters for the Czech branch of the international company PPD. PPD Czech Republic changed its registered office four years ago. The new location chosen for the company's offices was a promising site in Prague 4 where the lease will now expire. PPD chose DTZ to select a suitable space of around 1200 m² and thereafter to negotiate the terms. "At this moment we are monitoring the market and looking for optimal choices. The deciding factors in selecting new headquarters will mainly be transport accessibility, high standards of an A-level building, services in the vicinity, as well as opportunities for further expansion under the project," said Kateřina Karlíková of DTZ's Tenant Representation department.

The specific requirements of such companies include a higher number of parking spaces than usual. As a rule this means a ratio of 1 parking space per 30 m² of offices. Similarly the preference is for separate offices and not open space.

Major transactions made by DTZ in the course of less than two years include renegotiating the leases for Bristol-Myers Squibb and ConvaTec in Prague 1 with a total area of nearly 1000 m², and Biogen Idec's move to a new office complex in Pankrac. The most significant transaction in terms of size, involving approximately 3200 m², was in 2009 for Novartis, which moved from unsuitable premises in Prague 3 to the newly completed Gemini buildings in Pankrac. In this transaction DTZ consultants succeeded in securing an annual rent savings of about 40%.

Other major transactions include negotiating the lease terms for Merck. The company decided to sell its own building in Jažlovice and to lease roughly 1900 m² in the Kavčí Hory Office Park project in Prague 4. "DTZ was commissioned by Merck to negotiate the final form and wording of the lease, and yet in the end our team succeeded in negotiating even better and comfortable conditions for the client," adds Vaclav Bouček, Head of Tenant Representation at DTZ.

For another medical technology company, Medtronic, DTZ secured their relocation from Prague 8 to its new country offices in the Oregon House office project in Prague 5 Zličín, which allows further expansion in the building. Just this year Medtronic decided to take advantage of this possibility of expansion and the lessor is now completing the facility for use.

Source: DTZ

Related News