Bratislava Research Forum

Bratislava Research Forum Announces Office Market Figures for Q3 2019

  October 24th 2019, Bratislava

Bratislava Research Forum Announces

Office Market Figures for Q3 2019

  

Introduction

The Bratislava Research Forum is pleased to announce Office Market figures for Q3 2019.

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.

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Office Supply/Stock

 In the third quarter of 2019, the total office stock of A and B Grade quality in Bratislava amounts to more than 1.8 million square meters. 62% of the space is represented by A-class office space and 38% by B-Class office space

 

Total modern stock according to Bratislava districts   

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Total modern stock according to BRF classification

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 In the third quarter of 2019, there wasn´t completed any new office building in Bratislava. There are seven office buildings under construction to be completed in 2019/2020 and these will bring approx. 118,000 sq m of area to the Bratislava office market.

  

Green Certified Buildings

Within the total office stock 32 buildings, representing more than 621,000 sq m or approx. 34% 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 third quarter of 2019 amount almost 27,000 sq m, which represents 68% decrease of the let area compared to the previous quarter. Renegotiations represented 46% of all transactions, new leases secured 41%, pre-leases represented 8% and share of 5% was attributed to expansions.

There were three bigger leasing transaction (renegotiations) recorded in a total size of 4,000 sq m, 2,800 sq m and 2,206 sq m. In addition, we monitored another two transactions with the area of over 1,000 sq m.

In the third quarter of 2019, the majority of all transactions were signed within the Professional services sector (28%) and IT sector (26%).

 

Office Take-Up according to sector for the third quarter of 2019: 

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Significant Office Transactions

 

Property

Let area (sq m)

Occupation

Type of deal

AC Ružová dolina

4000

Public/Embassy/Trade Council/Diplomatic

Renegotiation

Galvaniho Business Center III

2800

IT

Renegotiation

Digital Park

2208

Prof. services

Renegotiation

Einpark Offices

1506

IT

Pre-lease

Eurovea Central

1080

Finance/ Banking/Insurance

New lease

Zuckermandel Hill Side

968

Prof. services

New lease

Green Point Offices

927

Manufacturing/Construction

New lease

Green Point Offices

927

Manufacturing/Construction

New lease

AC Ružová dolina

917

Public/Embassy/Trade Council/Diplomatic

New lease

Apollo Business Center II

900

Prof. services

Renegotiation

Lazaretská 12

851

IT

Renegotiation

 

Office Vacancy

The overall vacancy rate in the third quarter of 2019 for Bratislava has increased to 8.80% from 8.06% in the previous quarter. The lowest vacancy rates were recorded in Bratislava III (3.69%), followed by Bratislava I (6.04%), Bratislava II (9.12%) and Bratislava V (9.33%). The highest vacancy rate was recorded in Bratislava IV, in the level of 30.93%.

 

Prime Rent

The Prime Rent remained unchanged at 17.00 EUR/sq m/month.

 

 

 

 

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Definitions

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. 


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Andrej Mikula

Associate | Slovakia

Bratislava

Andrej is an Associate for Office Agency in Colliers International in Bratislava, Slovakia. His responsibilities include communication with clients, preparing market overview, new potential clients research, communication with landlords and prepairing of quartal office market overview in Bratislava – Bratislava Research Forum (BRF).

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