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News Release

Prague

Number of green developments growing rapidly in the Czech Republic

fter green offices and residential housing the market welcomes the very first green shopping centres and green warehouses


Prague, 18 May 2012 – The Czech property market has recently been witnessing a growing number of developments striving for environmental (pre)certification according to international standards (mostly either LEED or BREEAM). According to a recent Green Pulse report by Jones Lang LaSalle, there are not only green office buildings and a growing number of energy efficient residential schemes, but also the the very first certified shopping centres and the first industrial parks in the Czech Republic. Progressive sustainable development can be found not only in the Czech capital city Prague, but there are interesting projects emerging also in the regional towns in the Czech Republic.
Office Development 
Prague with 368,000 m2 (status 5/2012) of environmentally pre-certified office space leads the green office development in Central and Eastern Europe. Out of this volume approx. 251,000 m2 are in completed buildings, remaining 117,000 m2 being under construction (nearly 100% of all offices under construction in Prague going green). The very first internationally certified green building in Prague was the ČSOB headquarters which was completed in Prague-Radlice in 2007 and which obtained a  LEED Gold certificate in 2010. The first BREAAM certified office building was Futurama Business Park who´s first phase was completed in 2009 and certified in 2011. Currently, office building Main Point Karlín holds the highest ranking – namely LEED Platinum – which it received in spring 2012. However, there are other office schemes aspiring to gain high green grades (for example City Green Court in 2012 and Florentinum in 2013).  
Outside of Prague green offices are being built in Ostrava where scheme Nordica Ostrava obtained
a European Council environmental certificate in 2008. This year there was the first passive office building in the Czech Republic called Intoza building in Ostrava-Hulváky. In Brno, the second largest city in the Czech Republic, lags a bit behind and its first green offices are currently being prepared: Campus Science Park building C (developer by AIG Lincoln) and Spielberk Office Tower B (developed by CTP Invest) which may well become the first BREEAM Outstanding office building in continental Europe.        
„Green office development reflects an increased demand from investors and tenants regarding energy efficient building operation and the control of service charges especially for energy and/or cooling and heating,“ says Eduard Forejt, Head of Office Agency at Jones Lang LaSalle, adding: “branches of international companies are committed to decreasing their carbon footprint, which of course shortens the list of potential seats only to the buildings which monitor and decrease their environmental impact. Green certification has become the necessary prerequisite for any new office building´s success.”  
Residential Development
Although originally energy efficient housing was mainly down to the individual owners of singular family houses, in the past three or four years, a number of residential developments have been steadily growing. “Developers of green housing want to differentiate from the market offering by providing interesting alternatives to the mainstream residential supply. However they are not competing for green certificates such as LEED or BREEAM, but making sure their projects have the best energy performance certificate (EPC with ideally A or B grade). In fact, since 2009 every new development has been obliged to achieve an EPC of a minimum C grade to obtain a building permit,“ says Ondřej Novotný, Head of Research at Jones Lang LaSalle. Czech development company JRD pioneered the green residential development in the Czech Republic completing its very first energy efficient project Villa Štěrboholy in 2006. Currently, JRD has been preparing on of the biggest residential schemes in Prague – EcoCity Malešice – in two phases in total 100 residential units in
a passive standard. JRD has been followed by Skanska and YIT, two Scandinavian developers with long green building track records, and recently local developers Design Development, Sekyra Group and Konhefr. Other green residential schemes can be found in Brno, the second largest city in the Czech Republic. In 2010, Jižní Pohořelice, passive residential housing, was launched to the Brno market and now its second phase has been put on sale. Currently, Klášterní dvůr, another passive residential housing project located in Rajhrad by Brno, is now under construction.             
Retail Development
„Unlike green offices and green housing, energy efficiency is restricted to the alternative solutions for lighting (standard ones are replaced by modern LED´s) and installation of the electro-mobile charging stations in the parking lots. However, we have been monitoring a few exceptions to this common practice. Tesco opened the first zero carbon footprint hypermarket in continental Europe in Jaroměř, East Bohemia.Two shopping centres – Nová Karolina in Ostrava and the extended Centrum Černý Most in Prague,” says Ondřej Vlk, Senior Analyst at Jones Lang LaSalle, adding: „Forum Nová Karolína in Ostrava obtained the environmental certificate BREEAM Very Good this year and it´s the very first green shopping centre in the Czech Republic. The extended Centrum Černý Most should be completed next year and is also working towards the BREEAM certificate. However, in my view more sustainable retail schemes can be expected after the European/Czech legislation requires them as obligatory.“
Industrial Development
„There are a minimal number of green warehouses in the Czech Republic, mainly due to economical reasons, namely meaning higher rents reflecting the potential higher cost of sustainable development. Warehouse tenants are price sensitive and mainly appreciate measures to lower energy consumption which leads to lower service charges,“ says Blanka Vačkova, analyst at Jones Lang LaSalle, adding: „nearly all international developers, active on the Czech market, have introduced energy efficient features such as roof reflex membranes, high quality isolation and light sensors monitoring movement in warehouses. Some have also installed solar panels. In 2010, a manufacturing facility for Hill´s Pet Nutrition was completed in Hustopeče near Brno, which received a LEED certificate. Last year, third phase of Karlovarská Business Park obtained BREEAM Very Good and became the first green certified warehouse in the Czech Republic. We expect more to follow.”