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Research, Q4 2022

OCCUPIER MARKET HEADLINE FIGURES

TAKE UP VACANCY RATE PRIME RENT

153,192 45.6% 7.7% 6.6% € 318 10.4%

SQM YOY CHANGE RATE 5 YR AVERAGE RENT (PSQM) YOY CHANGE

Take up OCCUPIER
Over the last 5 years, square metres
HEADLINES
200K
In the fourth quarter of 2022, 153,192
sqm of take-up were recorded in the
150K
Prague office market, bringing total
take-up for the year to 551,488 sqm.
100K This is the highest this figure has been
in 10 years, and points to a strong
50K recovery of the office market after
challenges during the pandemic.
0K Despite this, the environment of
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022
increased uncertainty is preventing
many occupiers from being willing to
make relocation decisions - as such,
Source: Knight Frank Research
renegotiations accounted for the
largest share of take-up.

The vacancy rate ticked downward to

7.7% in Q4, compressed in part by low
Vacancy Rate Prime Rent construction completion figures
Measured in percentage terms Rents and the year-on-year change, Euros throughout the year.
per square metre
Prime Rent (LHS) YoY Change (RHS) Prime rental growth continues as the
8.2 € 400 20% demand for top-quality space persists,
climbing to € 318 psqm per annum.
This represents a 10.4% increase from
8.0
Q4 2021. Average rents have not
10% demonstrated the same trend,
€ 200 indicating that the gap in perceived
7.8
value between prime and B class
product has widened.
0%
7.6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2021 2021 2021 2022 2022 2022 2022 €0
2018 2020 2022

Source: Knight Frank Research Source: Knight Frank Research

 Power BI Desktop

ECONOMIC INDICATORS

Job Vacancies, Unfilled Unemployment Rate in Czech Republic

Czech Republic, Job Vacancies (Total) vs Euro Area, as a Percent of Civilian Labour Force %
400K Czech Republic Euro Area

300K

10.0
200K

100K
5.0

0K
2000 2010 2020 2005 2010 2015 2020

OECD (Organisation for Economic Co-operation and Development) Source: Eurostat/ Czech Ministry of Labor & Social Affairs

The number of unfilled job vacancies in the Czech Republic has
been falling in 2022 as the pace of hiring demand slows amid
economic uncertainty.
The unemployment rate in the Czech Republic remains the lowest
in the Euro Area. Despite increasing throughout the second half of
the year to its highest level for the year in December at 3.7%, it is
still well below the ten-year average of 4.8%. It is expected to
continue to increase into 2023, likely peaking in Q2.

Employment Expectations in the Service Service Confidence Indicator in Czech Republic

Service Confidence Indicator, %
Sector in Czech Republic
Over the next 3 months, %
20.0 50.0

0.0

0.0
-20.0

-40.0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

Source: European Commission (DG ECFIN) Source: European Commission (DG ECFIN)

Amid the anticipated labour market conditions, service sector Service sector confidence has held steady in Q4 after deteriorating
employment expectations continued to tick downwards in Q4 2022. in Q3 due to high inflation weighing on consumer spending.

LOCAL RESEARCH CONTACT LOCAL OFFICE OCCUPIER CONTACT LONDON CONTACT

Ondřej Vlk Richard Curran Colin Fitzgerald

Head of Research & Consultancy Managing Director Head
Head of
of Occupier
Occupier Strategy
Strategy && Soluti…
Solutions EMEA
ondrej.vlk@cz.knightfrank.com richard.curran@cz.knightfrank.com colin.fitzgerald@knightfrank.com
+420 224 217 217 +420 224 217 21 +44 20 7861 1203