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Prime Office Rental Rates in the Croatian Capital Zagreb Stabilizing - Rental rates for Class A Zagreb office space, which had faced downward pressure following a massive increase in supply in 2006, are now stabilizing
Prime Office Rental Rates in the Croatian Capital Zagreb Stabilizing

 

PRZOOM - /newswire/ - Zagreb, Croatia, 2007/11/27 - Rental rates for Class A Zagreb office space, which had faced downward pressure following a massive increase in supply in 2006, are now stabilizing.

   
 
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And after a significant increase in the office vacancy rate in 2006, when the majority of new landmark buildings had less than 50% occupancy, now that number has decreased dramatically and most new buildings have greater than 90% occupancy.

One effect of the big increase in supply in 2006, say Colliers International Croatia in their new office market overview, was that negotiating power shifted from investors to tenants, so that today the office market is tenant-driven.

The latest figures from the 3rd quarter of this year show a takeup of 20,000 m² NLA (net leaseable area), a solid amount in a traditionally slow period.

The next few years will see the arrival of the next generation of “smart” office buildings in Zagreb, say Colliers, which will utilize new technologies to reduce energy costs. These will likely force other Class A office buildings to follow their example. The next wave of office expansion is likely to spread beyond the borders of the current Central Business District, with significant new developments recently announced.

Tomislav Perovic, Managing Director of Colliers International Croatia, said, “Absorption has accelerated in 2007 as companies have used the opportunity of favorable terms to relocate. This means that the office market in Zagreb remains dynamic.”

Vedrana Likan, General Manager of Colliers International Croatia, added, “We are a major player in the office market, and with recent hires in our office department we are poised to become a market leader in the field.”

Philip Bay, Regional Director, Colliers International Southeast Europe, concluded, “I am proud of the high quality market research we produce. It is a valuable tool for clients, media and other real estate professionals, and just another reason why Colliers International Southeast is the leading property consultants in the region.”

The new research appears in the Croatia Office Overview for the second half of 2007 and is available for download on the Colliers website.

Colliers International Southeast Europe was recently named Property Consultant of the Year for the region for the second straight year.

Colliers International is the largest real estate advisory firm in Southeast Europe.

 
 
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Agency / Source: Colliers International

 
 

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Prime Office Rental Rates in the Croatian Capital Zagreb Stabilizing

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Contact: Christen Thomson - Colliers.com 
christen.thomson[.]colliers.com
 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Colliers International securities in any jurisdiction including any other companies listed or named in this release.

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