Almost half of the offices in Prague are at the edge of their lifespan

Radka Novak

Prague - Nearly half of the office spaces in Prague are over ten years old, which is the lifespan of technology in a modern office building. This is indicated by statistics from the real estate consulting company Cushman & Wakefield (C&W), which predicts that two-thirds of office spaces will undergo renovation within two years.
    "Buildings constructed between 1999-2003 currently account for about 30% of all category A and B spaces in Prague. Another 35 percent consists of spaces built between 2004-2008," noted the head of the office team, Radka Novak.
    According to her, the lifespan of a modern office building in terms of technology and internal layout is estimated to be ten years. "Before this period expires, it is necessary to make a crucial decision regarding how the office building will be further offered for use. Owners can choose either a complete renovation, which can rejuvenate it by seven to eight years, or opt for a partial renovation. This decision-making will concern approximately two-thirds of office space in Prague in the next two years," she added, noting that some owners will also consider converting the building into a hotel or apartments.
    Larger renovations are currently being prepared by the owners of the Myslbek building on Prague's Příkopy Street and the Prague City Centre on Klimentská Street. "Both buildings are located at prestigious addresses in the center of Prague, and it can be assumed that the demand for these spaces will continue," remarked Novak.
    Renovations always concern the entrance and common areas of the building, ideally also the building's technology. "What is more difficult to change in buildings from the nineties is the internal layout of rentable spaces. While they do offer open space, the layout of floors does not always correspond to current trends," Novak added.
    Prague has 2.9 million m² of office space. At the end of March this year, there was a slight increase in vacant offices, with a total of 13.7% unoccupied in the capital city.