FMnewsroom – office market. Working in coworking offices is gaining more and more popularity in the Prague office market. The demand is dominated by technology and consultancy companies.
By the end of the first quarter, this year coworking offices had already reached 3%, which corresponds to almost 110,000 m2 of modern office space in Prague – Kurzy reports. Experts foresee further positive developments in the future as well. In the first quarter of this year, 5,100 sqm of flexible office space was newly leased, representing a year-on-year increase of 23% – the highest number of completed transactions during the first quarter since 2019.
Among the significant benefits of coworking are greater flexibility than with standard rentals as well as a clearly defined amount of costs in advance without the risk of unexpected expenses. It also represents a solution for companies that are trying to attract new talents from the ranks of millennials or are considering entering new markets.
Trends behind coworking popularity
However, the current strong demand for coworking spaces is mainly due to the trends that are gaining ground in the labour market at the moment. A number of companies, for example, have changed their current strategy and set a certain number of days per week for their employees to spend in person at the workplace. This creates a demand for flexible spaces.
Another and no less important factor is that a number of offices are undergoing transformation or reconstruction at this time. Companies are increasingly focusing on the spaces they operate and their impact on both their employees and the environment. In order for companies to speed up the process of reconstruction, they leave their own offices for a temporary period and use coworking centres instead.
The structural change in demand
The demand for serviced offices in the metropolis has always been driven by companies from the technological sectors, especially the IT sector. However, in the last fifteen months, there has been a structural change in demand. Consulting firms leased the largest number of shared spaces during this period (500 in total), followed by companies in the financial sector (300 spaces) and then technology (240 spaces). The average length of newly concluded contracts was 16 months.
Since 2018, the most space (almost 23,000 m2) in the metropolis has been leased to operators of serviced and flexible offices in the Pankrác and Budějovická areas, where the monthly fee for a workplace in a separate office is 375 euros. It was followed by the city centre (21,000 sqm) and Karlín (18,800 sqm).
From 2018 to the first quarter of 2023, a total of 86,000 square meters of administrative real estate was leased in the metropolis for the purpose of operating shared offices, of which the largest share – 27% – was in the Pankrác-Budějovická area.
There is business beyond the centre
The highest average rents are achieved by operators in the city centre. At the most prestigious coworking addresses, such as Národní and Na Příkopě streets, the monthly fee for a workplace in a separate office is 400 euros. Only ten euros less is paid in the centre of Karlín, where demand exceeds supply for a long time.
Serviced offices in locations further from the city centre are also growing in popularity, mainly due to lower costs and the high standard of services offered. For example, in Chodov the basic monthly flat rate will cost 350 euros, and in Stodůlky 330 euros,
Coworking centres have a specific atmosphere
Flexible office spaces are widely used across the corporate spectrum. For people working on a freelance basis and for large corporations that offer them to their employees as a benefit and to diversify the already established tandem of work in the office and at home office.
Coworking centres have a specific atmosphere. There is also a playful design and rooms equipped with the most modern audiovisual and communication technology. In addition, they organize various social and educational events, joint breakfasts, exercises and the like for their members
