Earthquake and pandemic disrupt office rental market in Zagreb
- by croatiaweek
- in Business
ZAGREB, April 26 (Hina) – Uncertainties caused by the coronavirus crisis and the March 22 earthquake have affected the office rental market in Zagreb and the present situation is very bad, the president of the Croatian Chamber of Commerce real estate agents’ association, Dubravko Ranilovic, told Hina earlier this week.
Ranilovic said that numerous downtown buildings that had been rented out as offices, were now damaged and owners and leaseholders were now looking for alternatives until the buildings, damaged in the quake, are repaired, which can take time. On the other hand, office building owners are not inclined to rent out their property for a period shorter than two years.
“Demand for office rentals, notably those top class (Class A), is high,” Ranilovic said.
Office buildings are generally classified into one of three categories: Class A, Class B, or Class C. Standards for Class A offices are the highest. These buildings represent the newest and highest quality buildings on the market. They are generally buildings with the best curb appeal, the best construction, and high-quality building infrastructure. Class A buildings are also well located.
Rents for Class A offices range between €13 and €16 per square metre while those at less attractive locations go for between €10 and €11 per square metre.
Ranilovic also said he doubted rents would go down, at least not any time soon, but that the situation would depend on the duration of the pandemic and that in the long run, all options were possible.
Demand for warehouse rentals with an area of between 2,000 and 5,000 square metres is also high.