The volume of newly completed office space was again very low in the first quarter of 2026. Only two projects with a total area of 8,600 m² were completed during the quarter. However, newly launched projects represent a much more significant signal of market recovery. Three new projects have been launched, adding a total of 59,800 m² to office space under construction and bringing the total volume under construction to nearly 313,000 m². This represents a year-on-year increase of 81%.

The share of speculative construction is also growing, with developers launching projects even without secured tenants. They are banking on the continuing shortage of quality office space in central Prague and companies’ willingness to pay more than 35 euros per square meter per month for premium locations and top-tier spaces.

Vacancy rate: stable at first glance, but increasingly tense beneath the surface

The total supply of modern office space stood at 3.93 million m² at the end of the first quarter of 2026, representing a slight decline. The reason for the decline is simple: older buildings are disappearing from the market faster than new ones are being built. Furthermore, conversions into residential buildings or hotels are also eating into the existing supply of office space; these have recently emerged as an alternative to comprehensive renovations of older offices to meet new modern standards. In 2025, a record-low 26,600 m² of new office space was completed, a figure that is almost negligible for a city of millions.

The vacancy rate nevertheless remained stable at 5.8%, though the overall figure masks significant polarization. “Top-tier AAA-class buildings in the city center recorded a vacancy rate of just 2.3%, so prospective tenants have practically nothing to choose from. In addition to the city center itself, Karlín also achieved a very low vacancy rate of 2.7 percent; Brumlovka had slightly more openings at 4.8 percent, and Pankrác at 5.2 percent. In contrast, Stodůlky or Nové Butovice report vacancy rates exceeding 17 and 10 percent, respectively. Prague thus has two distinct office markets: one overheated and the other stagnant,” explains Josef Stanko, Director of Market Research at Colliers, describing the current situation.

Pre-leases are making a comeback

Gross demand reached 105,400 square m² in the first quarter, a 19 percent increase year-on-year. Renegotiations of existing leases dominated, accounting for over half (57%) of all activity.

Following a weaker 2025, pre-leases—contracts signed before a project is completed—are also beginning to return. In 2025, this was a marginal phenomenon; this year, it already accounts for 15 percent of demand. One example is the technology firm Everpure, which secured 15,000 m² in the renovated Danube House in Karlín.

Rents in the city center have risen by 30 percent over the past five years

Rents in the prime locations of the city center have remained stable at 30 euros per square meter per month, but prime rents in the wider city center have risen to 21–22 euros. In Karlín, rents reached as high as 24 euros, reflecting the neighborhood’s appeal as well as the modernity of its buildings. Prices on the city’s outskirts ranged from 15.50 to 16.50 euros. The prime yield remains at 5.25%. Over the past five years, prime rents in the city center and the immediate vicinity have risen by more than 30%. New projects in the planning phase—in the center of Prague—are aiming even higher: asking rents exceed 35 euros per square meter. In the wider city center, they range from 25 to 28 euros.

Construction indicates developers’ confidence in the market

The growing volume of new construction suggests that developers are beginning to trust the market again. Three newly launched projects, including speculative office buildings without pre-leased tenants, indicate expectations of further growth in demand for high-quality office space.

Several major projects are currently under construction. Sequoia in Nové Roztyly utilizes a brownfield site near the Jižní spojka highway, which offers good transport accessibility and ambitious architecture. Churchill III in Prague 2 builds on a proven location near the Main Railway Station. Dvory Vysočany in Prague 9 is part of a larger project aimed at transforming an industrial brownfield into an entirely new neighborhood with over a thousand apartments and offices.

Another driver for the development of the office market could be the ongoing construction of Metro Line D, which will increase the attractiveness of currently less-developed areas near future stations.

Sustainability as a Foundation

“Just ten years ago, a BREEAM or LEED certification for an office building was a competitive advantage, but today it is a prerequisite. More than half of Prague’s office stock is already certified, and new projects are aiming straight for the highest levels—LEED Platinum or BREEAM Outstanding,” says Josef Stanko, noting that uncertified buildings have poorer access to financing and are finding it increasingly difficult to attract tenants from among larger corporations.

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Email: marta.lipovska@prcom.cz