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Karlín has become the heart of Prague’s offices

From 2011 to 2015, more than 200 office lease transactions have been closed in Karlín. BUTTERFLY, another new office complex with an area of about 23 thousand sq m, will be completed in Karlín in the last quarter of 2017.

CBRE, the world leader in commercial real estate services, has seen a new trend on the Prague office real estate market. Karlín has become a popular location for offices in the last five years, which has even surpassed the city centre in terms of the transactions’ volume. In response to market demand, a number of new development projects have arisen in Karlín. CBRE won an exclusive instruction for leasing of office space in the BUTTERFLY building.

There is growing interest in office buildings in the Czech Republic. A number of Czech companies are currently seeking space due to favourable market and economic conditions that offer high quality office space, mainly in Prague. It is also due to the growth in the share of foreign companies expanding on the local or Central European markets, where the Czech Republic is a popular entry destination. Previously, given the limited capacity of the Prague’s city centre, office hubs have sprung up in Prague 4, around Pankrác and Budějovická or in Butovice, among others.

Helena Hurábová, Associate Director of Office Agency at CBRE, commented:

“Companies are growing, increasing the number of employees and consolidating their branches and moving to one place. The strong economy is reflected in the demand. Additionally, many companies have managed to close advantageous leasing agreements with considerable incentives thanks to the newly constructed buildings and strong market for tenants in the past year.”

The results of a study by CBRE show that the total number of transactions concluded in leasing Class A office buildings in Prague in 2015 is rising, with the city centre being the focus of the highest interest with Karlín trailing close behind, with a leading number of transactions of newly leased offices in the past five years. 49 new lease agreements for Class A office space were closed last year in Karlín, (compared to 51 transactions in the city centre), with 201 companies choosing Karlín to locate their companies and new offices from 2011 to 2015 (see table below). Karlín has become the office centre of Prague, which offers its clients an excellent location at the edge of a modern residential neighbourhood and an emerging business area, having sophisticated amenities and a wide range of corporate services, while being a very short distance from the city centre in a matter of minutes.

New class A leases in Prague from2011 to 2015

Source: CBRE Research, PRF

In response to market demand, a number of new development projects have arisen in Karlín as well. CBRE won an exclusive contract to broker the lease of office space at BUTTERFLY. The construction of this property, located in Prague 8 - Karlín, situated between Pernerova and Korybutova streets, is at the stage of preparatory ground works according to the developer AFI Europe and is proceeding according to plan, with its completion scheduled for the last quarter of 2017.

The six-floor BUTTERFLY building will have about 23 thousand sq m of leasable area, with 18 thousand sq m area for offices. BUTTERFLY tenants will benefit from business premises, entrance through both wings of the building, 303 parking spaces and a canteen, cafe and restaurant. In addition to the high quality office space, BREEAM Excellent certification and a range of premium services at BUTTERFLY offers a flexible, thoughtful and generous working environment.

Kateřina Holická, Leasing Manager at AFI EUROPE Czech Republic s.r.o., added:

“It’s possible to create office space ranging from 300 sq m to 4 260 sq m according to our clients’ requirements. It's up to them whether they choose open space or closed offices."