For institutional fund strategies, Nové Město carries the strongest investor flag in Prague, with prime yields around 5.4%.

  • Trophy submarket (Nové Město) carries the strongest investor flag.
  • Prime yield: 5.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Prague office fund strategy and flag

For institutional fund strategies, Nové Město carries the strongest investor flag in Prague, with prime yields around 5.4%.

TL;DR

  • Trophy submarket (Nové Město) carries the strongest investor flag.
  • Prime yield: 5.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Prague, that's Nové Město and assets like The Park, Florentinum.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityPrague
countryCzechia
regionEMEA
classARentLocal312 EUR/sqft/yr
classARentUsd$340/sqft/yr
vacancy7.6%
typicalLeaseYears5
typicalRentFreeMonths6
submarkets5
primeYieldPct5.4%
primeYield5.4%
trophyAnchorNové Město

Frequently asked questions

Where do core funds buy in Prague?
Trophy submarket — Nové Město — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

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