Saturday, 15 March 2025
The Regional Research Forum, composed of CBRE, Colliers, Cushman & Wakefield, iO Partners, Knight Frank, and Savills, has released its latest findings on the Brno and Ostrava office markets for the second half of 2024. The report highlights stable vacancy rates, rising rental prices in Brno, and a lack of new office developments in Ostrava, underscoring the evolving challenges and opportunities in both cities.
Brno Office Market: Rising Demand and Limited Supply
Brno continues to see strong demand for office space, particularly from the manufacturing and technology sectors. At the end of 2024, the total modern office stock in Brno reached 699,300 sqm, with Class A buildings accounting for 73% of the total supply.
Only one office project was completed in the second half of the year—Vlněna I, a development by CTP located in the former Vlněna factory complex. Despite the limited new supply, office demand remained robust, with companies actively seeking high-quality workspaces. The largest transaction in H2 2024 was a pre-lease by manufacturing company Garrett, securing 5,900 sqm at CTPark Brno A 3.2 EF. Additionally, Garrett signed a new lease for 5,800 sqm at the Honeywell Office Campus, while AT&T renegotiated its lease for 4,000 sqm at Campus Science Park A.
Vacancy rates in Brno remained stable at 12.7%, with 88,500 sqm of vacant office space at the end of the year. Meanwhile, prime headline rents saw a slight increase, now ranging between EUR 16.75 and 17.00 per sqm per month, reflecting continued demand for premium office locations.
Future Developments in Brno
Brno has an active development pipeline, with eight office projects currently under construction, totaling 78,000 sqm of new office space. Key projects include Ponávka A4 (16,800 sqm), Nová Zbrojovka D2+D3 (12,500 sqm), and Nová Zbrojovka D4 (12,000 sqm). In 2025, an additional 21,700 sqm of office space is expected to be completed, contributing to the city’s continued growth.
Pavel Novák, Head of Office Agency at Savills, emphasized the importance of ongoing development in regional cities: “Companies are facing increasing challenges in finding quality office space. Active development in Brno is helping maintain market balance, but other regional cities, such as Plzeň, Olomouc, Hradec Králové, and Pardubice, are beginning to feel the effects of long-term underdevelopment in the office sector.”
Ostrava Office Market: No New Supply but Vacancy Declining
Unlike Brno, no new office buildings were completed in Ostrava in H2 2024, and there are currently no projects under construction. The total modern office stock in Ostrava stands at 250,300 sqm, with 70% of the city’s office buildings being over a decade old.
Despite the lack of new supply, Ostrava saw a notable improvement in vacancy rates, which declined by 4.3 percentage points year-on-year to 11.6%. This reduction suggests gradual absorption of existing office stock as businesses secure available spaces in the city. However, the report did not identify any significant lease agreements in H2 2024, highlighting the relatively stagnant activity in the market.
Prime headline rents in Ostrava remained stable, ranging from EUR 14.00 to 14.50 per sqm per month.
Challenges and Opportunities in the Czech Regional Office Market
While Brno remains a key player in regional office development, Ostrava’s stagnation raises concerns about the long-term sustainability of its office sector. A shortage of modern office space is also becoming evident in mid-sized cities like Liberec, where availability is increasingly limited. This imbalance between supply and demand is putting upward pressure on rental prices, even in secondary markets.
Looking ahead, developers and investors will need to address the growing demand for quality office space across Czech regional cities. With Brno continuing to attract new tenants and maintain stable growth, and Ostrava seeing improvements in vacancy rates, the next phase of market evolution will depend on the willingness of developers to invest in new projects and adapt to changing tenant needs.
