19
Sep 2018

Recent trends in real estate: Anchor tenants leave inefficient offices

  • Offices

Based on a recent boom of construction of new administrative projects across Prague, there is a growing tendency to relocate from existing, usually older and less efficient office buildings as these are no longer sufficient to meet the current needs of companies.

A recent example is the relocation of CCS company, the leading provider of fuel cards, to the newly-built Palmovka Open Park project. From the beginning of 2019, the company will use a total of 3,200 square meters of office space. The transaction was mediated by 108 AGENCY. One of the requirements of CCS was to stay in the location of Prague 8, where the company has already resided in the Bulovka Business Center office building.

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As a result, CCS extends a number of companies that want to provide their employees with modern facilities, with an emphasis on efficient operation and good transport accessibility. Thus, aspects that older administrative buildings can no longer fully accommodate. Other recent examples of such decision include the company ALEF NULA, which moved from the older premises in Prague – Michle to the recently completed Butterfly project in Prague 8 - Karlín, or PGRLF, the Support and Guarantee Peasant and Forestry Fund, which is newly based in the OASIS Florenc project where it moved from the original premises in Za Poříčskou branou street. Older objects usually require a comprehensive upgrading and nowadays represent extremely desired asset on the investment market. An example of the successful reconstruction of the original building is the Qubix project in Prague 4, which after the complete reconstruction of the building from 1976 can now boast also the highest ecological certification of LEED Platinum and four years ago it has been included in the portfolio of ČS Real Estate Fund managed by the investment company REICO ČS.

"The dynamically evolving location of Prague 8 offers tenants the opportunity to choose from a number of interesting new projects. In addition, the Palmovka Open Park combines the genuine features of the original building with the newest top quality offices. CCS knows the location of Prague 8 well and wished to stay there, so moving from the older, inefficient complex was a logical step," says Ondřej Straširybka, consultant of the 108 AGENCY office department responsible for the transaction.

The Palmovka Open Park offers BREEAM Excellent certified office premises and after its complete completion, it will extend the total stock of office premises in Prague 8 by a total of 25,500 sqm of leasable areas.

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