How Much Do the Best Offices in Croatia Cost?

In the first quarter of 2013, a total of 32,141 m² of new office space entered the market, which includes the following business buildings: Business Building One, Črnomerec Center, Savska Business Building, and the HOK building.

We expect a total of 77,690 m² of new office space to enter the market by the end of 2013, of which 56,340 m² is category A space and 21,350 m² is high category B space, according to the Zagreb Research Forum report.
Some of the buildings we expect to enter the market during the year are Adris Center, Vesna project, Ban Center and the Union building, they say.

The total amount of office space leased during the first quarter of 2013 was 8,764 m², distributed as follows: relocation of existing tenants 6,392 m² (72.9%), new lease only 37.00 m² (0.42%), expansion 1,975 m² (22%) and 360 m² (4.11%) related to renewals and renegotiations of existing lease agreements.

The largest share of leasing in the first quarter of 2013 was recorded in the area of New Zagreb with 3,360 m² (38.34%) and the Center with 1,860 m² (21.22%). In other areas, transactions were recorded in the following ranges: Central Business District – 964 m² (10.99%), Eastern Business District – 871 m² (9.94%), West – 209 m² (2.38%) and Others – 1,500 m² (17.12%). The banking (24.87%) and pharmaceutical (6.97%) sectors represented the majority of active tenants in transactions that took place in the first quarter.

The vacancy rate for office spaces recorded in the first quarter of 2013 was between 15% and 18%, which represents an increase compared to the figures recorded in the last quarter of 2012. A further increase in the vacancy rate is expected as new office space comes to the market throughout the year.

The contracted rent for the best office spaces in the first quarter of 2013 was 15 euros per month per square meter.
Rents for lower quality office spaces ranged between 9 and 12 euros per month per square meter. Although there were no significant transactions in the office space market during the first quarter, the prime yield rate in the region currently ranges between 8% and 9%.