Prague office market in Q1 2026: supply is thinning, tenants still prefer to stay

Prague's modern office market has entered 2026 in a structurally tight position. Vacancy rates have fallen year-on-year, new space deliveries this year will be well below the long-term average and more than half of demand is made up of renegotiations of existing contracts. What does this mean for companies that have, are looking for, or are leasing office space?

The market in numbers: stock grows slowly, vacancy continues to fall

The total stock of modern offices in Prague reached the end of Q1 2026 3.93 million m². The vacancy rate remained unchanged quarter-on-quarter and remains at 5,8 %, but down 114 basis points year-on-year - confirming that vacant quality space is disappearing from the market.

The differences between locations are dramatic:

• Prague 2: only 2.1% vacancy rate
• Prague 1: 3,1 %
• Prague 10: 12,4 %
• Prague 3: 10,4 %

In the five most attractive locations - downtown, Karlín, Pankrác, Holešovice and Brumlovka - the vacancy rate is only between 3 and 5.5%. These locations make up almost half of the market, so the feeling of "there is nothing to choose from" is a reality for many tenants, not an impression.

For those looking: supply is tight, pre-letting is worthwhile

If you're currently looking for an office in Prague, it's a good idea to take into account that finding quality space in an attractive location is significantly more challenging today than it was two years ago. There are 228,300 sqm of vacant space available, but the distribution is favoring landlords.

What to do:

• Prime rents in the centre remains stable at 30 EUR/m²/month, in the inner city it is approaching EUR 22/m²/month - no significant price drop is expected
• There is a development under construction 312 900 m², but more than 63% is already pre-let - This means that waiting for a new building to be completed without pre-letting is now risky
• BREEAM/LEED certification and energy efficiency have become a standard requirement for selection - without them, a company simply isn't looking for

For existing tenants: renegotiation makes sense, but prepare in advance

Demand structure dominated in Q1 2026 Renegotiation of existing contracts with a share of 57%. New leases and expansions accounted for 27%, pre-leases 15% and subleases the remaining percentage. The trend is clear: companies would rather negotiate better terms where they already are than deal with relocation.

Renegotiations by large tenants were among the most significant transactions of the quarter:

• Deutsche Börse Group in Futurama Business Park (Prague 8) - 15,500 m²
• Novartis in the Gemini A building (Prague 4) - 10,700 m²
• Pure Storage Czech Republic in Danube House (Prague 8) - pre-lease for 15,000 m²

Hybrid working has established itself as a standard, the space requirements of companies have become established and a quality building with ESG certification has turned into a competitive advantage in recruitment. But beware - with the market favouring landlords, it pays to open negotiations early.

For landlords: the best environment in years

For office owners, the situation in Q1 2026 is structurally favourable. The negotiating position is strong, prime rents are holding, net absorption is positive (+7,800 sqm) and demand for quality certified space remains robust - gross take-up is up year-on-year up 19% to 105,400 m².

From a tenant perspective, the dominant occupiers are technology companies (28%), financial institutions (19%) and healthcare (16%). Geographically, Prague 8 (48% of activity), Prague 4 (22%) and Prague 1 (7%) are the most popular locations.

What to expect next: developers are cautiously returning

After several subdued quarters, three new speculative projects have entered the pipeline:

• Sequoia (Prague 4) - 33,000 m²
• Churchill III (Prague 2) - 20 800 m²
• Dvory Vysočany - 5,000 sqm - Prague City Centre - 5,000 sqm (Prague 9) - 6 000 m²

This is a signal that developer confidence is returning - but full-year deliveries in 2026 will only amount to about 36 700 m², well below the long-term average. A real release of supply can be expected in 2027 and 2028 at the earliestand even then by a margin, given the high proportion of pre-lets in pipeline projects.