Lease of a business unit in the center - or price policy and development
Business units in the center of Prague are and have always been an interesting and popular commodity for traders. Not surprisingly, the centers of the capitals of Europe attract a lot of visitors not only because of the sights, but also because of rest, good food or shopping. The center of Prague is one of the places where tourism forms a large part of the population, and therefore it goes without saying that hand in hand with growing tourism, business units in the center of Prague are also growing in popularity, especially for investors.
Therefore, we would like to dedicate this article to the issue of unit prices in the center and how their popularity is declining or rising.
Our company has been renting business units for several years, and thanks to that we also have thoroughly mapped prices per sqm of business units in the center of Prague and the interest of traders in renting them. And wonder or not, but the price per sqm is not always the same in every street. If we wanted to create a "price map" of business units in the center, we would have to change prices per sqm on every ten meters of the street or square. Therefore, we should rather orient ourselves according to the tourist map, which will reveal lucrative places for traffic much better.
Let's just list the streets and squares where renting a commercial property is attractive:
Streets such as: Na Příkopě, Pařížská, Celetná, Karlova, Mostecká, Nerudova, Melantrichova, Na Můstku, Rytířská, Železná, Dlouhá, Národní, Spálená, Vodičkova, Jindřišská, 28. října, V Celnici, Revoluční
Squares: Old Town Square, Wenceslas Square, Republic Square, Charles Square
These and other places are literally an attraction for tourists, but even these streets or squares have their parts, where there is much less passage of tourists and, conversely, parts where there is a surplus of tourists. And this, of course, is reflected in rental prices, of which homeowners are aware.
For example: the left side of Na Příkopě Street is more visited than the right side. Wenceslas Square has a much higher attendance in the lower half than in the upper half. And to change Dlouhá Street, they are of interest to entrepreneurs at both ends of the street, especially to restaurateurs, while its center is weaker. Even all this can be reversed. And how? In particular, to occupy weaker places tenants, who will attract attention and thus increase the overall attractiveness of the street. This can be achieved primarily through services or well-known brands that attract attention.
Here, however, we are located on the so-called thin ice, as large gastronomic companies can change the overall impression of these locations, and not always for the better. There is more traffic in front of restaurants, and this can, of course, bother residents who live in the area. In addition, not every house is adapted for gastronomic operation. Therefore, it very much depends on the decision of the owner of the unit, whether it is the Capital City of Prague, a private entrepreneur or a company, what conditions will be included in the lease agreement, and for how long the agreement will be valid. The validity period provides some flexibility to the unit owner.
Unfortunately, there are also localities in the center of Prague that are gradually declining (Wenceslas Square, Spálená, Národní, 28. října), mainly due to smaller tenants, such as: non-stop food, pizza stalls, liquor stores, souvenirs or small boutiques with unbranded fashion and accessories of all kinds. If there are more, the number of visitors in the streets will start to decrease and the overall impression will decrease. As a result, the rental price will begin to fall. And that's certainly not what a commercial property owner wants in the future.
This could also be prevented by regulation on the part of the city leadership. of the City of Prague, if in individual streets, which are located in the center of Prague near the monuments, there are clearly defined boundaries, what type of goods may and may not be sold in connection with the surroundings. Prague should be able to control leases and be able to intervene if the type of lease does not correspond to the development, interest, and overall atmosphere of the area. However, this is very difficult to grasp, so the easier way is the direct communication of the city with the owners of the buildings and its help in revitalizing the surroundings of the units or the buildings themselves.