Florentinum in the center of Prague has opened to the public as well as its first tenants

Prague - The extensive office and commercial building Florentinum in the center of Prague, which cost investor Penta 200 million euros (5.5 billion crowns), has opened the central square and the historic Desfour Garden to the public and welcomed its first tenants. Penta group spokesperson Martin Danko told reporters that 70% of approximately 50,000 square meters of office space has been leased. Penta aims to have it fully leased by mid-2015.
    Since the beginning of the year, the building has also housed two main tenants - EY and the law firm Havel, Holásek & Partners. "The relocation of other mostly already announced tenants will take place gradually throughout this year, with the grand opening of Florentinum planned for the transition from spring to summer 2014," added Danko.
    Among the retailers, the Interspar chain, watch seller Koscom, and the drugstore Rossmann will move into the building in the coming weeks.
    The building offers a total of 49,000 square meters of gross office space across nine floors, 7,860 square meters of retail space, 3,426 m² of storage, and 602 parking spaces. It also includes a 3,000 m² square and Desfour Garden. Adjacent to it is the newly opened Motel One hotel.
    Penta acquired the building of Czech Typography, the former headquarters of the newspaper Rudé Právo, from the Austrian company S+B CEE Beteiligungsverwaltungs in January 2010. Construction began in March 2012, and it was completed in October 2013.
    Florentinum is Penta's first real estate project in the Czech Republic. In addition, it is currently preparing to develop the site of the former aircraft engine factory Waltrovka in Prague's Jinonice, where a new urban district is expected to emerge for five billion crowns.
    Consultant in the office real estate department at Jones Lang LaSalle Zuzana Kalvodová pointed out that the opening of Florentinum and other office spaces under construction in the center of Prague will increase the volume of vacant offices. "This will put pressure on landlords, especially of older buildings, who will have to adapt to the situation. Successful completions of renovations of common areas of buildings like Myslbek or Slovanský Dům can be an example. These changes will allow owners to lease under the same financial conditions and avoid reducing rents," she noted.
    New projects can be particularly attractive to companies located in older buildings. "It is possible to save on overall costs even at a higher rental value - taking into account rental incentives such as rent holidays, due to lower operating costs, and higher efficiency in the use of office spaces," said Petr Markvart from the office department of Cushman & Wakefield. Projects like Florentinum or the competing Quadrio may also be interesting for companies that must remain in the center, Markvart specified.
    "Florentinum has already attracted renowned tenants from consulting and law firms who appreciate, among other things, the efficiency of the offices, the high technical standard of the building, and the low operating costs," added Pavel Domalewski, head of landlord representation at DTZ Czech Republic. DTZ is among the future tenants of the building.