Large-scale office projects are rare in downtown Prague, so the start of Penta investments Florentinum could stir things up.
Penta investments Florentinum, the 49,000 sqm office project Penta started building in March in Prague 1 has already attracted over 20,000 sqm-worth of tenants. The developer Penta is taking 15,000 sqm for its headquarters, while the legal firm Havel, Holásek & Partners has signed up for 4,800 sqm, after deciding its 400+ staff would be best served by moving from its address near Old Town square.
“Our office is at a prime address, but it does not enable for further expansion. In Florentinum we will take space on the top floors, with services and parking space at hand,” says Jan Holásek, a partner at the firm. DTZ, which represented the tenant on the deal, expects the building, which is located between Na Florenci and Na Poříčí streets, will attract further big names.
“This could stir up the Prague market,” says DTZ ‘s development director Jaromír Smetana. “It’s very sensitive for any landlord, when a major tenant leaves. Florentinum has very good timing, as many major companies are considering further expansion and strengthening their positions.” An example of this is Ernst & Young, which plans to leave Charles Square Center for 10,000 sqm of new space in Florentinum. Smetana says this type of new supply will lead to increased pressure to lower operational costs and run buildings more efficiently. Vacancy in Prague 1 is at 11.79 percent, according to DTZ, just below the Prague average of 12.01 percent.