CBRE, a global leader in commercial real estate services published its latest forecast for Czech warehouse market. Current vacant space is already at 10-year low and is expected to fall even further and approach the 200 thoushand square meters mark. Tenants should renegotiate to avoid future rent hike.
We expect demand to remain high as the economy and e-commerce continues to grow. Re-shoring, that is bringing back manufacturing from China is another factor to consider as well as nearshoring from Western to Central and Eastern Europe. Supply will remain constrained due to the unpredictable permitting process and little public support in building more warehouses in the Czech Republic.
Although it may not be obvious, this is the right time for occupiers to renegotiate their lease
in advance of the contracts expiring, and turn the possible threat into a real business opportunity. Especially if you have less than 5 years remaining on your lease and your company has a strong credit rating, you can secure or even improve conditions of your lease agreement.Bert Hesselink, Head of Industrial & Logistics CBRE
When you take action now, you can improve your competitive position. Be one of the few who will have been pro-active because the majority of companies will be too busy being busy and will realize they missed the opportunity when it´s too late and rents will have increased already.
Be ahead of the curve.