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Coworking in the Czech Republic September 2018

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Coworking in the Czech Republic September 2018 COWORKING IN THE CZECH REPUBLIC SEPTEMBER 2018 RESEARCH Real Estate for a changing world Coworking is about networking not about physical space. Lukáš Hudeček, Node5 There is space for expansion in every large city in the Czech Republic for a coworking centre, as people are less willing to relocate for work and more and more concerned with work life balance. Lukáš Hudeček, Node5 ÚSTÍ NAD LABEM LIBEREC COWORKING IN THE CZECH REPUBLIC - SEPTEMBER TEPLICE BRANDYS HRADEC CHOMUTOV NAD LABEM KRLOV PRAGUE KOLIN 6 ² PARDUBICE OSTRAVA OPAVA HAVÍŘOV PLZEŇ ZLATNIKY KARVIN – HODKOVICE OLOMOUC PŘIBOR PRIBRAM PŘEROV NOVÝ IČÍN TABOR HAVLIČKÚV COWBROD ORKZLÍN ING ČESKÉ BUDÉOVICE BRNO 3 ² 80 27,600 m2 350 m2 8 Coworking centres Total size of Average size of Coworking centres run by in the Czech Republic the coworking centres a coworking centre international operators (41% in Prague) COWORKING IN THE CZECH REPUBLIC ST NAD 2 2 LABEM TEPLICE 1 LIBEREC HRADEC KRLOV 1 BRANDYS KADAŇ 1 1 NAD LABEM 2 CHOMUTOV 33 PRAGUE 1 3 OSTRAVA 4 OPAVA 1 ZLATNIKY KOLIN PARDUBICE 2 – HODKOVICE 2 HAVÍŘOV 1 2 KARVIN 2 LITOMYŠL 1 OLOMOUC 6 (9,700 m ) PLZEŇ PŘIBRAM 1 1 PŘIBOR COWORKING CENTRES 1 HAVLIČKŮV + PŘEROV 3 TÁBOR 1 BROD 1 NOVÝ JIČÍN IN A-CLASS PROPERTIES 1 ZLN 3 2 ČESKÉ 9 74 (17,900 m ) BUDĚOVICE 1 BRNO 1 COWORKING CENTRES IN UHERSKÉ HRADIŠTĚ B, C-CLASS PROPERTIES Source: BNP Paribas Real Estate, as of September 2018 COWORKING SPACE MEETS THE NEED FOR FLEXIBILITY COMMUNITY SERVICES Small businesses, freelancers and start- Coworking spaces favour communication, Coworking spaces are mostly located in ups can use workspace when they require networking and collaborative work. Com- prime districts, close to transportation it. Coworking spaces offer short-term rent- munity events are organized and reinforce hubs and other amenities. Members are al or membership fees based on hours of the feeling of being part of a community. provided with a fully equipped workspace access so that the businesses save costs. as well as food and drinks which are at These entrepreneurs also may not be able The network is also not bound to physi- disposal in the cafés and kitchenettes for to commit elsewhere to standard long- cal space but also extended to an online the members. Some centres even offer term lease contracts. Large companies community of members including purely the use of the garden, an own chef or may also be a target for coworking oper- virtual memberships. electric cars for members to quickly get ators and benefit from access to talent, to meetings. innovation and the creativity driven en- vironment. Additionally, some corporates may even dedicate some excess space to coworking centres. 3 COWORKING IN THE CZECH REPUBLIC - SEPTEMBER 2018 COWORKING VERSUS SERVICED OFFICES? COMMUNITY RATHER WHAT LIES BEHIND THAN SPACE THE RISING DEMAND FOR Coworking is COWORKING SPACE? already a buzz word but what MILLENNIALS AND defines space of 2,000 GEN Z AS THE NEW Number of start-ups this nature? WORKFORCE OF TODAY in the Czech Republic1 COWORKING IS A CONCEPT OF AND TOMORROW “WORKING TOGETHER“ AND Millennials and Gen Z require more flexi- USUALLY INVOLVES A SHARED bility, they strive to connect both virtually WORKSPACE WHERE INDEPENDENT as well as in real space and ask for work life balance. All that has transformed the PROFESSIONALS WORK TOGETHER. way we work and coworking centres re- The division between coworking space spond to these needs. and serviced offices becomes blurry as many serviced office suppliers are now presenting coworking as a part of their SHARING ECONOMY offer. Nevertheless, key difference is that Sharing the offices becomes common as coworking centres operate on member- sharing cars and homes via Uber or AirBnB. 340,000 ship fees and their philosophy relies on Number of self-employed – office connected community and network building. While professions2 pure coworking centres offer also cellular DIGITALISATION offices for lease, serviced offices providers Technological advancement and digital- are tapping into the potential the millen- isation allow new flexible forms of em- nial workforce provides with their request ployment away from the fixed desk in the for flexibility and community building that corporate office. Sources: 1. Erste Group is the coworking offer. 2. Ministry of Labour 4 COWORKING IN THE CZECH REPUBLIC - SEPTEMBER SERVICED OFFICES Spaces offer PROVIDING TAILOR-MADE creative working SOLUTIONS environments There are 22 serviced offices within the Czech Republic, providing 23,000 sq m with a unique of office space operated by the global 22 Number of serviced market leader Regus with 11 buildings offices in the Czech entrepreneurial and a local provider Scott & Weber. Their Republic goal is to ensure that the client does not spirit and we need to take care about anything and provide him with a “tailor-made office”. are happy that Therefore, they offer any services clients need, such as administrative and IT sup- businesses in port, legal and tax counselling, events organisation, catering and dry clean- Prague will be ing. Serviced offices nowadays are also quite flexible with offered lease length, able to join this it is even possible to rent an office for one day. They are targeting mainly busi- unique concept ness clientele. Scott & Weber will open 2 another centre in the office building Pra- 23,000 m of flexible ga Studios on 1,350 sq m next year. Re- Total size of the serviced offices gus that has become part of the IWG is working soon. about to enter the market with another Karel Pelan product line branded Spaces providing Regus Country Manager highly professional coworking spaces di- rectly in the downtown of Prague. 5 COWORKING IN THE CZECH REPUBLIC - SEPTEMBER 2018 EVOLUTION OF COWORKING THE FIRST COWORKING CEN- The majority of centres is situated in B, operates in Visionary office building in TRE IN THE CZECH REPUBLIC C-class properties (93%). Recently the Prague 7 Holešovice. WAS LAUNCHED IN PRAGUE share of coworking centres in A class Most coworking centres are run by lo- IN 2009. Since then the sector has properties has risen to 7% and others cal entrepreneurs, some of them have undergone significant development and will follow. a wider presence in several locations. rise in the numbers. As of now, we reg- In 2017 Node5 opened a coworking The share of international chains is ris- ister 80 centres in the country. 33 are centre in Ústí nad Labem on 750 sq m. ing swiftly as is the average size with situated in Prague (48% in total size of Beginning 2018 Impact Hub opened in the large international centres being the centres). The coworking phenom- Brno the largest centre in its network in opened. The international chains active enon has also spread to other towns Europe on 3,400 sq m. The Port opened as of September include Impact Hub, in the country, sourcing on the cities’ in Prague Karlín in March 2018. The in- HubHub and BusinessLink, Worklounge skilled labour, student population with ternational chain HubHub launched its aspires to become an international strong technical background and in operation in the summer this year in Na player with expansion planned abroad. cases of smaller cities also lack of suit- Příkopě 14 (2,000 sq m). BusinessLink able office solutions. THE SECTOR IS SEEING DY- as well as external ones, “community” opening in Albatros Building in Prague NAMIC EVOLUTION as is con- building and with space rental for ex- 1 on 3,500 sq m. WeWork, the largest firmed by recent wave of openings. ternal events. In terms of its member- international coworking operator, is not International coworking brands are ex- ship base start-ups and technology sec- yet present in the Czech Republic but is panding heavily. Another HubHub will tor are a key target along with a fusion looking for suitable premises. Also not be opened in Palác Ara also in the city with the corporate innovation teams. present are MindSpace, TalentGarden centre end of this year. HubHub will fo- or ServCorp, some of the largest inter- International Workspace Group (IWG cus on three pillars within its strategy national chains active in Europe. This – holding company of Regus Spaces providing “programming” – educational year new supply of coworking centres and other coworking brands) will be events, workshops both for members will amount to 11,500 sq m. 6 COWORKING IN THE CZECH REPUBLIC - SEPTEMBER WHERE DO WE CO-WORK? Coworking spaces and serviced offices in Prague 33 coworking spaces PRAGUE 1 SMCHOV Average size 490 m² THE MAJORITYZLIČÍN OF COWORKING CENTRES ARE SITUATED IN CENTRAL It is not just about fast LOCATIONS IN PRAGUE, internet, good coffee and Prague 1 hasŘEPORYJE the highest comfortable furniture number of centres, followed by anymore, it is about Prague 5 and Prague 2. Some feeling good in the centres also emerged in outer city locations and even smaller coworking space. municipalities around Prague. Petr Šedivý, Impact Hub Most of the regional and large district capitals also have PRAGUE seen the emergence of newPRAGUE 16 coworking centres lately. ZBRASLAV Source: BNP Paribas Real Estate ÚSTÍ NAD LABEM LIBEREC 20 serviced offices TEPLICE BRANDYS HRADEC Average size 1,100 m² CHOMUTOV NAD LABEM KRLOV PRAGUE KOLIN 6 ² PARDUBICE OSTRAVA OPAVA HAVÍŘOV PLZEŇ ZLATNIKY KARVIN – HODKOVICE OLOMOUC PŘIBOR PRIBRAM PŘEROV NOVÝ IČÍN TABOR HAVLIČKÚV There is strong demand BROD ZLÍN for coworking spaces in ČESKÉ BUDÉOVICE BRNO Prague and therefore we 3 ² are negotiating about other attractive locations for HubHub. Source: BNP Paribas Real Estate 75% located
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