According to E15 daily, ECM’s spokeswoman confirmed that there is still 25% of its flagship project City Tower vacant. Negotiations with potential tenants are becoming lengthier as lot of office supply is coming to this sub-market. Rental levels in this area are reaching average of EUR 14.5-15.5/sqm/month.
City Tower project is lagging behind vacancy level that is prevailing on the Prague market, which reaches some 5-7%. On the other hand ECM’s average rent in City Tower is reaching above average levels of some EUR 16.0/sqm/month. We see the news that vacancy has not not been decreasing over past 1 and 1/2 month since the company published its FY2007 results as negative.