Growth of Business Services is having a significant impact on the real estate market in the Czech Republic

15.2.2016
ABSL annual report indicated that up to 70% of companies in the Business Services segment are having to deal with the issue of changes to their office space as a result of their expansion or their efforts to improve the quality of the work environment.
 
Jonathan Appleton, president of ABSL says,: “Companies active in the business services segment consider a modern working environment to be one of the key reasons helping them to attract high-quality employees. This is why, in the past year, we have observed a strong tendency to abandon older office complexes, which are incapable of meeting the requirements of modern work methods, when not only desk space is required, but also relaxation zones, eating facilities and areas for networking and sharing know-how are desirable. This is why over 70% of companies in this sector dealt with the issue of moving to more modern areas or re-evaluating currently rented space for the purpose of improving conditions.“
 
According to information from the JLL real estate company, there is nearly 4 million m2 of modern office space for rent in the Czech Republic and six hundred and fifty thousand square metres of this is unoccupied. Ostrava has the greatest reserve (24% unoccupied space), as well as other regional cities, which is why they are becoming of interest to foreign investors in the segment of shared services, who are planning to enter the Czech market. The advantage of these cities, which includes Olomouc or Hradec Králové for instance, is that the rent is cheaper and there is sufficient qualified labour force, due to the local universities.
 
For more details please see our latest press release.

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