Brno: Slowing growth, higher vacancy rates

The Brno office market closed out 2025 with a total area of 715,700 m² and year-over-year growth of 2.3%. The vacancy rate rose to 14.4% at the end of the fourth quarter, corresponding to approximately 103,100 m² of vacant space. Such spaces larger than 1,000 m² are found in roughly a quarter of the city’s 100 modern office buildings.

Two new buildings were completed during the year: Skylight X (10,900 m²) as part of the Titanium project and Botanická Living Lab by Infond (10,800 m²). However, both buildings have remained largely vacant since completion.

Rising vacancy rates are hindering not only the development of new projects — there were very few new construction starts last year — but also rent growth. Prime rent rose by only €1 year-over-year to €18/m²/month.

Total gross demand reached 64,900 m², with a large portion of transactions being concluded off-market, which reduces data transparency. Renegotiations thus officially accounted for only 13% of total volume. The largest transaction was a pre-lease of over 10,000 m² in the Nová Zbrojovka D4 building for a company in the energy sector. Technology companies remain the driving force behind demand, followed by firms active in energy and manufacturing.

At the end of the year, nine projects with a total area of 92,300 m² were under construction: six of which, covering 51,900 m², are expected to be completed in 2026. Dornych remains the star for coming years, with completion expected as late as mid-2028. Nevertheless, it is already attracting tenants for both its office and retail spaces — according to Colliers, interest in the project is extraordinary.

“The outlook for the Brno office market is cautious. The economic situation and market conditions currently favor residential construction over office construction. At the same time, part of the existing office stock is aging. Without investment in renovations, it will become increasingly difficult to lease,” notes Josef Stanko, director of market research at Colliers.

Ostrava: Demand is falling, construction is at a standstill

Although the Ostrava office market is the third-largest in the country, it plays a supporting role in the region’s construction industry. The total area of modern office space here reached approximately 246,000 m² by the end of 2025. The vacancy rate has remained stable at around 11% for nearly two years, representing roughly 26,000 m² of available space. About one-third of this is accounted for by CTP’s IQ Tower, which the company is gradually modernizing.

New construction has practically come to a standstill. No new office projects were started or completed during 2025. The only building under construction is the boutique project Václav, located in the immediate vicinity of Masaryk Square. The project by developer Antracit, combining offices, retail and residential space, is scheduled for completion in the first half of next year.

Gross demand in 2025 reached 11,200 m², roughly half the level of the previous year. However, the decline is largely technical. The flexible office segment significantly drove demand in 2024, but activity in that area came to a halt last year. Low demand then caused rental prices to stagnate. Prime rents currently range from 14.00 to 14.50 EUR/m²/month, with average rents in modern buildings at 13 EUR.

Regions: Sporadic development, residential space takes priority

“The situation outside Prague, Brno and Ostrava remains essentially unchanged. New office development in regional cities is sporadic. Rents for a new project would be at the Ostrava level or lower, which, given today’s construction costs, would make it difficult to justify the investment. For a project to make sense, it must involve either an exceptional location, a pre-lease for a single tenant or construction for the developer’s own use,” says Josef Stanko, noting that competition from the residential sector also plays a significant role. Prices for apartments outside Prague have risen significantly in recent years, while office rents in the regions have stagnated. So local developers are prioritizing residential construction.

Industrial spaces and so-called SBUs (small business units) are taking over part of the demand for offices. CTBoxes from CTP, Citysites from Contera, or projects by the Purposia Group can appeal to companies for which a standard office building is unsuitable in terms of both capacity and operations.

Nevertheless, new office space is not entirely absent in the regions. Construction of Pernerka continues in Pardubice, with completion expected in the second half of 2028. While the office portion is relatively modest, at around 5,000 m², successful occupancy can be expected. Institutional tenants in the region are showing interest in modern spaces. In the center of Zlín, local investor PSG is developing the mixed-use high-rise building Prospect Zlín.

The Ameside multifunctional project in Plzeň by Amadeus Real Estate and the Šantovka project in Olomouc by Redstone have greater ambitions. Both projects aim to transform entire sections of those cities into destinations combining retail, offices, residential space and entertainment. However, both have been grappling with permitting complications for several years, and so plans are constantly evolving.