Renegotiations help category B offices in Prague (CZ)

Lease renegotiations accounted for 33% of total transactions last year and their share is expected to remain strong. Since last year the percentage of renegotiations rose significantly for category B office space transactions and to 70% in the first quarter.

"In general, tenants still have quite a few projects to choose from when considering to relocate their offices, the extent of which depends on geographical preferences of the tenant. However, pro-active landlords and property managers who have developed and maintained good relationships with and understand the needs of their tenants have proven to be able to successfully renew leases and keep their tenants," said Bert Hesselink, head of the leasing department at DTZ's Prague office.

The latest large renegotiations occurred at the Pekařská 14-16 complex in Prague 5, which is owned by the company Heitman. ClarioNet extended and expanded its lease in the building at Pekařská 14, where it now has 714 m². Another major tenant, Adidas, has undergone consolidation whereby it concentrated its offices onto three floors of one building at Pekařská 16 with a total capacity of 1,747 ².

The DTZ team represented the property owner in negotiations from the position of rentals and property management. The buildings at Pekařská 14-16 house such major tenants as BEIERSDORF, tesa tape, Účetnictví on-line, and the multinational company Du Pont.

In category B administrative buildings, leases were signed in the first quarter of this year totaling 12,103 m². For the full year 2009 this figure was nearly 17,000 m², in 2008 over 14,000 m² and for the year before 25,540 m².

The largest leases in March included 2,260 m² for ČEPRO in the renovated Rosmarin building in Prague 7, 1,600 m² for Certicon in Mánes House in Prague 2, and the lease of 3,250 m² to L´Oreal in Palác Křižík in Prague 5.

Source: DTZ Prague

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