Prague Research Forum Announces Office Market Figures for Q4 2025
- In 2025, only 26,600 sq m of office space was completed, representing the historically lowest annual new supply
- Construction activity increased by 60% year-on-year to 263,300 sq m, with more than 60% of this space was already pre-leased
- Gross take-up in 2025 reached 573,200 sq m, standing 8% above the five-year average
- Vacancy rate decreased by 134 bps year-on-year to 5.9%
- Prime headline rents in Prague remained stable
Introduction
Prague Research Forum is pleased to announce the office market figures for the fourth quarter of 2025. The members of the Prague Research Forum – CBRE, Colliers, Cushman & Wakefield, iO Partners, Knight Frank and Savills – share non-sensitive information with the intention of providing consistent, accurate and transparent data about the Prague office market.
RICS supports the activities of the Prague Research Forum.
Commentary
Petr Kareš, iO Partners, Head of Tenant Representation, comments:
“The current situation in the Prague office market, unfortunately offers only a limited amount of new office space. On the other hand, occupiers continue to optimise their operations, releasing surplus capacity back to the market. At the same time, new development projects are moving into the construction phase, with delivery expected towards the end of 2027 and in the first half of 2028. We expect this office space to attract occupiers despite a noticeable increase in rents following a three-year period of stagnation.”
Office Stock and New Supply
At the end of 2025, the total modern office stock in Prague remained at 3.94 mil. sq m. The share of A class office space stood at approximately 74%, with top-quality projects (AAA class buildings) representing over 20% of the total stock.
In Q4, two office projects were completed. New supply included PernerKarlín (9,300 sq m) in Prague 8 and the refurbishment of Panorama Airport Building (2,000 sq m) in Prague 6. Overall, only five office projects totalling 26,600 sq m were delivered, marking the lowest annual level of new supply on the Prague office market. New supply is expected to remain limited in the following year as well, with approximately
36,700 sq m of office space scheduled for completion.
During Q4, construction started on two office projects. Passerinvest Group commenced construction
of Orion (19,300 sq m) in Prague 4, while Mount Capital began the refurbishment of the second phase
of E Factory (5,200 sq m) in Prague 9. Currently, 263,300 sq m of office space is under construction, with scheduled completion between 2026 and 2028. Although this represents the highest level
of development activity since 2019, more than 60% of this volume is already pre-leased or owner-occupied.
Office Take-up
Total gross take-up (including renegotiations and subleases) reached 143,400 sq m in Q4, representing
a quarter-on-quarter decrease of 19%. On a year-on-year basis, this reflects a decline of 24%. For the full year 2025, leasing activity in Prague totalled 573,200 sq m of leased office space. Although this represents a 10% decrease compared to the record-breaking year 2024, it remains 8% above the five-year average.
The highest gross take-up in Q4 was recorded in Prague 5 (38%), followed by Prague 4 (24%) and Prague 1 (10%). Demand for office space was led by manufacturing companies (22%), followed by pharmaceutical and medical firms (13%) and the FMCG sector (11%).
Renegotiations accounted for the majority of Q4 demand, reaching 56%. New leases and expansions represented 42%, while the remaining 2% consisted of subleases. Net take-up (excluding renegotiations and subleases) reached 60 900 sq m in Q4, representing a 31% decline compared to the previous quarter. For the whole year 2025, net demand for office space totalled 307,100 sq m, reflecting only a marginal year-on-year decrease of 3%.
Major Office Leasing Transactions
The most significant transaction in Q4 was Siemens’ renegotiation at City West (21,900 sq m) in Prague 5. Other notable transactions included Johnson & Johnson’s lease renewal at Mechanica 01 (10,600 sq m) and the renegotiation by an FMCG company at Building B, Brumlovka (8,900 sq m) in Prague 4.
Office Vacancy and Net Absorption
Net absorption, reflecting the change in occupied office space over a given period, increased quarter-on-quarter by 23,200 sq m. In 2025, approximately 75,000 sq m of office space was absorbed, contributing to a decline in the vacancy rate.
Compared to the previous quarter, the vacancy rate in Prague decreased by 52 basis points to 5.9%. On a year-on-year basis, this represents a decline of 134 basis points. At the end of 2025, approximately 231,200 sq m of office space was vacant.
The highest vacancy rates were recorded in Prague 10 (12.2%) and in Prague 3 (10.6%). By contrast, the lowest vacancy rate remained in Prague 2 (1.8%) and in Prague 8 (3.3%).
Rents
Prime headline rents in Prague remained stable in Q4 2025. In the city centre, prime rental levels stood at €29.00-30.00 per sq m per month, while rents in inner city locations reached €19.50-20.50 per sq m per month and €15.50-16.50 per sq m per month in the outer parts of Prague.