The Bratislava Research Forum is pleased to announce Office Market figures for Q2 2017.
The members of the Bratislava Research Forum (BRF) – Cushman and Wakefield, CBRE, Colliers International and JLL share non-sensitive information with the aim of providing clients and public with consistent, accurate and transparent data about the Bratislava office market.
The market is classified into city centre, inner city and outer city as outlined in the plan below to allow a simplified analysis. In addition, data is collected also according to Bratislava districts.
In the second quarter of 2017, the total office stock of A and B Grade quality in Bratislava amounts to more than 1.67 million square meters. 58% of the space is represented by A-class office space and 42% by B-Class office space.
In the second quarter of 2017 the office project UNIQ Staromestská, situated in the premium location of the city centre, has been completed, bringing 8 303 sq m of modern office space to the market. In the second half of 2017 we are expecting the delivery of projects Green Cube, Panorama Business II., Zuckermandel CX a New Stein which will bring more than 43.000 sq m of office space to the market.
Green Certified Buildings
Within this total stock 26 buildings representing approx. 492.000 sq m or approx 29% of the total stock have secured certification as green/sustainable developments – either LEED or BREEAM ratings.
Transactions on the Office space market (Office Take-up)
Transactions that have been concluded in the second quarter of 2017 represent a total amount of 42.835 sq m, which represents a 38% increase when compared to the previous quarter. New leases represented 74% of all transactions, renegotiations represented 19% and 7% were attributed to expansions.
In Q2 2017 the biggest leasing transaction (pre-lease) recorded amounted to 4.434 sq m. In addition, we monitored four other transactions over 2.000 sq m and eight transactions between 1.000 – 2.000 sq m.
In the second quarter of 2017 the majority of transactions were signed in the IT sector (30.99%), followed by professional services sector (28.06%).
Office Take-Up according to sector for the second quarter of 2017:
Significant Office Transactions
4.434 m² - Einsteinova Offices (under construction), Pre-lease (Finance/Banking/Insurance)
3.500 m² - BA Business Center V, Renegotiation (IT)
3.037 m² - Zuckermandel CA , New lease (Professional Services)
2.935 m² - Digital Park II, New lease (IT)
2.217 m² - Twin City Tower (under construction), Pre-lease (Others)
The overall vacancy rate in second quarter for Bratislava has slightly decreased to 6.85 % from 7.04% in the previous quarter. The lowest vacancy rates recorded were in Bratislava IV (1,23%), followed by Bratislava V (4.87%), Bratislava I (5.81%) and Bratislava II (7.94%). The highest vacancy rate was recorded in Bratislava III which has been slightly reduced to the level of 10.67%.
Stock: Total completed office space (occupied and vacant), newly built since 1993 or refurbished, A and B class offices, owner occupied and for lease. Public authorities’ buildings and buildings fewer than 800 sq m are excluded.
New supply: Completed newly built or refurbished buildings that obtained a use permit in the given period.
A-Class office building: Reflects an above average fullfilment of the specific criteria including the following: integrated air conditioning system, limited total floor depth, floor to ceiling height minimum of 2.75m, flexibility of internal design, either three compartment trunking for telephones, electricity and computer cable or raised floors/suspended ceilings, manned reception and covered access to car parking, lift access and disabled access, dual power supply and/or power supply system back-up.
B-Class office building: Reflects an average or typical property in that market based on the above mentioned criteria.
Take-up: A gross figure representing the total floor space known to have been let or pre-let, sold or pre-sold to tenants or owner-occupiers over a specified period of time. It does not include space that is under offer. A property is taken up when the contract is signed. Total take-up includes re-negotiations, net take-up excludes re-negotiations.
Pre-lease: Active pre-leasing for an office building begins as soon as preliminary design drawings are ready to show to prospective tenants. Pre-leasing occurs until the start of construction.
Vacancy rate: Ratio of physically vacant space in completed buildings as a percentage of the total stock.
Prime rent: Achieved rents that relate to new prime, high specification units in prime locations.