Prague Class A Office Market

TL;DR

• Anchor BPO, IT, and shared-services tenancy — IBM, Accenture, DHL, Société Générale, ExxonMobil.
• Karlín and Nové Město define the post-2010 trophy tier.
• 30-40% rent discount to Western European peer markets.
• Class A vacancy near 8% — tight for a CEE shared-services hub.

Overview

Prague is one of Central and Eastern Europe's deepest Class A markets. Anchored by a structural BPO, IT, and shared-services tenant base — IBM, Accenture, DHL, ExxonMobil, Société Générale — the city offers significant cost discount to Western European peers with broadly equivalent specification.

Market snapshot

Composite of Q1 2026 broker market reports for Prague (JLL, CBRE, Cushman & Wakefield, Colliers, Knight Frank, Savills).

Lease norms

Czech double-net structure (tenant pays operating costs and property tax pass-through). 5-10 year terms standard. Rents typically quoted in EUR. Rent-free of 4-8 months on 5-year terms plus EUR 150-300/sqm TI typical.

Transit & access

Prague Metro (3 lines), tram (35 lines), bus, and ČD regional rail. Prague Václav Havel Airport is connected by bus 119 to Nádraží Veleslavín metro.

Tax

Czech corporate tax of 21%. 21% VAT. Combined effective rate near 21%. No significant municipal corporate tax.

Talent

Strong BPO, IT, finance back-office, and engineering talent. Charles University, Czech Technical University (ČVUT), and University of Economics (VŠE) anchor the pipeline. Multilingual (Czech, English, German, Russian) talent supports international shared-services tenancy.

Notable Class A buildings

• The Park · Chodov — Major business park anchor.
• Florentinum · Nové Město — ČSOB anchor; mixed-use trophy.
• Main Point Karlín · Karlín — Karlín trophy anchor.
• Quadrio · Nové Město
• Nile House · Karlín

Class A submarkets in Prague

• Nové Město — Heritage CBD trophy core. (trophy)
• Karlín — Post-2010 mixed-use frontier. (prime)
• Smíchov — Western Class A and tech corridor. (prime)
• Pankrác — Southern suburban Class A spine. (prime)
• Chodov / Michle — Suburban business-park corridor. (established)

Prague deep-dives

• Rents and incentives — What does Class A rent cost and what concessions are typical?
• Sublease market — How deep is sublease">sublease availability and how does it price?
• ESG and LEED stock — How much certified stock exists and what premium does it command?
• Transit and commute — Which submarkets have the strongest transit access?
• Talent and salaries — What does the white-collar talent pool look like and how is it priced?
• Fit-out costs — What does a Class A fit-out">fit-out cost per square foot?
• Flex vs lease — When does premium coworking beat a traditional lease?
• Taxes and incentives — What corporate, occupancy, and property taxes apply?
• Neighborhoods overview — Which Class A submarkets exist and how do they compare?
• Notable buildings — Which trophy assets define the market?
• Class A vs Class B — What is the spread between Class A and Class B and why?
• Leasing conventions — What lease structures, terms, and concessions are normal?
• Expansion checklist — What is the operational checklist for opening here?
• Relocation guide — How do you move into this market from another city?
• Frequently asked questions — Quick answers to the questions occupiers ask most.
• Operating expenses — What service charges, OpEx, and pass-throughs apply on top of rent?
• Growth and availability — How tight is current availability and what does the pipeline look like?
• Sustainability pathways — How do tenants land net-zero or science-based-target leases here?
• Hybrid work policy — How are hybrid policies shaping office demand here?
• Security and redundancy — What security, power, and connectivity redundancy are standard?
• Lab and R&D space — What does R&D-grade or wet-lab space look like in this market?
• Brand experience — How do trophy buildings function as brand experiences and showpieces?
• Fund strategy and flag — Which submarkets carry the strongest investor flag for funds?
• Exit and renewal — How do you handle a Class A renewal or exit cleanly here?
• Market cycle position — Where is this Class A market in its cycle right now?

Frequently asked questions

What is the role of shared services in Prague?

Material. IBM, Accenture, DHL, ExxonMobil, Société Générale, Honeywell, and a deep cluster of BPO, IT, and finance shared-services centres anchor 30%+ of Prague's Class A absorption.

How does Prague compare to Warsaw or Budapest?

Prague's Class A market is more mature than Bucharest or Sofia and broadly comparable to Warsaw on rent and vacancy. Discount to Vienna or Munich is material (~40-50%).

Are concessions available?

Yes. Rent-free of 4-8 months on a 5-year deal is standard, with EUR 150-300/sqm TI typical.