Office vacancy in Prague stood at just 5.9% at the end of June 2026. The European average is 9.7%. According to new data from BNP Paribas Real Estate, only a handful of major European markets have lower vacancy rates. For companies that will be dealing with new offices over the next two years, this means one thing: start planning earlier.
On Thursday evening, representatives of the real estate and logistics markets gathered at Revír Karlín for an event unlike anything 108 Real Estate had held before. Together with STOW Group, a European manufacturer of racking systems, the company hosted its very first joint event, called Warehousing trends – a look at the current state of the warehouse market from the perspective of two companies that each see it differently.
André Kerremans has been appointed the new Business Development Director of the 108 REAL ESTATE Group for Central and Eastern Europe. He assumed the position in recent days and has been collaborating with the group’s branches in all five countries of the region from the very start. His mandate rests on two equally important pillars: regional business development and CEE coordination. On the business side, he will develop cross-border projects and build relationships with key tenant contacts—real estate executives, supply chain directors, and procurement managers at major logistics, e-commerce, manufacturing, and 3PL companies operating throughout the region—and will represent 108 REAL ESTATE at industry conferences and forums across the CEE region. In addition to his sales role, André Kerremans will also contribute to the implementation of internal processes and the introduction of innovations into real estate practice.
From last place to 4th out of 11 teams. At the charity dragon boat races, we supported Zlatá rybka and its mission to make the dreams of seriously ill children come true—and we discovered that a team is built even on the water.
The new school year is traditionally associated with September 1st, backpacks, and new pencil cases. We decided to add to that atmosphere—and sent our clients and partners back to their desks as well. Instead of a classroom, however, we chose Střídačka’s garden; instead of schoolwork, just good food and drinks; and instead of homework, no obligations—just a good get-together with everyone we meet throughout the year at trade shows, in meetings, and on projects.
132,000 square meters of newly completed industrial space versus 263,000 m2 of new lease transactions. This disparity between the volume of leases and newly completed manufacturing and warehouse space was a defining factor for the situation in the Czech Republic during the second quarter. However, by the end of June and during the subsequent summer vacation weeks, this region also felt the effects of the hot European summer: increased fuel costs for transportation, trucks returning to the roads due to impassable rivers, and weakening performance in the German automotive industry due to declining purchasing power and competition, particularly from Chinese automakers.
Demand for office space in major European cities fell by 9% year-over-year in the first half of 2026, mainly due to a lack of large transactions. Prime rents, however, continue to rise—by 6.2% year-over-year in major markets—driven by a shortage of high-quality Class A space. The vacancy rate rose to 9.6%, but remains highly polarized: prime locations in city centers are nearly full, while space is becoming available on the outskirts.
Activity picked up across sectors, while prime yields remained largely stable. The only compression was observed in the industrial sector.
Hybrid work arrangements and remote work are among the main reasons for the weaker performance of the office space market in Europe during the first half of this year. However, the declining volume of lease transactions is also influenced by tenants’ cautious approach due to economic uncertainty. Another factor is the shortage of larger, high-quality spaces available for rent, especially in attractive parts of European cities. While demand for prime office space is growing in Barcelona, Brussels, and Dublin, traditional markets in London, Paris, Milan, and Germany’s largest cities are seeing a double-digit year-over-year decline in leasing activity. According to the real estate consulting firm 108 REAL ESTATE, tenants’ needs are clearly changing—there is a prevailing interest in smaller, higher-quality spaces in attractive locations, for which companies are willing to pay higher rents. The highest rents have risen by nearly 5% year-over-year.
