The Prague office market faces a significant modernization challenge, with nearly one-third of its office space requiring comprehensive renovation. According to Josef Stanko, Director of Market Research at Colliers, of Prague's 4 million square meters of office space, approximately 1.6 to 2 million square meters are considered outdated. This affects hundreds, potentially thousands of companies, particularly smaller businesses that typically occupy older buildings.

Modern Standards and Market Leaders

Surprisingly, buildings as young as 15-20 years can be considered outdated in today's rapidly evolving market. Modern office standards now demand energy efficiency, smart technologies for parking and access control, contemporary design elements, and efficient HVAC systems. Location has become increasingly important, with premium value placed on proximity to amenities such as shops, fitness centers, and recreational areas.

Market leaders are setting high standards for office space quality in Prague. Skanska has developed several projects boasting top European ratings and certifications, including the notable Port 7 development, praised for its excellent metro accessibility and river views. Penta has also contributed significant high-quality developments, while the Karlín district continues to emerge as a hub for premium office space.

Renovation Challenges and Solutions

A complete renovation typically takes about two years, comparable to new construction timeframes. With Prague's current low vacancy rates, managing tenant relocation during renovation requires careful planning. Companies often opt for phased renovation approaches, strategic timing around tenant departures, or temporary relocations with planned returns.

For companies with limited budgets, there are still ways to modernize their office spaces effectively. Stanko recommends starting with an audit to identify priorities, then implementing targeted upgrades such as modern lighting systems, reservation systems, CO2 sensors, and workspace redesign. These improvements can significantly enhance the work environment without the cost of a complete renovation.

Looking ahead, with few new office projects expected to complete over the next two and a half years, renovation and modernization will play an increasingly important role in meeting market demands for quality office space. Professional support from companies like Colliers can help guide businesses through the entire renovation process, ensuring that renovations meet both current needs and future market demands.