Developers claim that the crisis has improved the quality of offices in downtown Prague.

Prague - One of the consequences of the economic crisis is the increase in quality of new offices, especially in the center of Prague. Developers are trying to attract tenants to new spaces. This was stated by representatives of developers who have built their own administrative complexes in the center of the capital during today's discussion meeting of the Construction Forum.
    "With the crisis, tenant behavior has changed in such a way that if they are to move into new spaces, it must either mean higher quality or savings for them. Developers are now listening much more to tenants and placing greater emphasis on using higher quality materials," said Pavel Skřivánek, director of office rentals for the CPI group.
    The CPI investment group of entrepreneur Radovan Vítek is currently completing the multifunctional complex Quadrio on Národní Street, directly above the metro station. The company claims to be building the project to meet conditions for obtaining a Leed Silver green building certification. "As late as 2007, developers thought they would not pursue green certifications, but pressure from tenants changed this attitude, and now it has become standard for new projects. For most investment funds, some form of green certification is also a requirement," Skřivánek pointed out.
    The newly completed Florentinum building of the Penta investment group next to Masaryk Station also has the Leed Gold certification, which is one degree stricter. "In projects being built in Prague 1, quality has really increased since the outbreak of the crisis. Companies renting offices here are not only focused on the size but also consider the overall appearance, quality, and last but not least, a prestigious address," added Penta's project director Petr Palička.
    However, the crisis has also benefited developers, as they can save money during construction due to the crisis in the construction industry. "Builders are fighting for survival and significantly reducing their margins. For developers, this means that they can obtain higher quality for the same price as before or the same quality for a lower price," warned Skřivánek.
    According to Palička, the crisis also "separated the wheat from the chaff." "Developers who had no money and only built thanks to bank loans have disappeared. You won't get a loan now if you don't already have enough leased space. Even so, loans are around 60 to 70 percent, so for example, for a project costing a billion, you need at least 300 million crowns from your own funds," he said.