The Industrial Research Forum was established in 2010 with its aim to provide clients with consistent, accurate and transparent data about the Czech Republic industrial real estate market. The members of the Industrial Research Forum, CBRE, Colliers International, Cushman & Wakefield and JLL, share non-sensitive information and believe the establishment of the Industrial Research Forum will enhance transparency on the Czech industrial market.
The Industrial Research Forum is pleased to announce the final Industrial Market figures for Q1 2019.
Total Stock & New Supply
The total modern developer-led warehouse stock in the Czech Republic currently stands at 7.97 million sq m. Approximately 168,300 sq m was newly delivered to the market in Q1 2019 within 13 industrial parks across the Czech Republic. This level of supply represents a 21% decrease compared to the same period of the previous year and a decrease of 3% in comparison with the previous quarter.
Major completions included a 56,300 sq m building in Ostrava Airport Multimodal Park, out of which 65% has been already leased. The second largest building to be completed (23,500 sq m) is located in the Goodman Mladá Boleslav Logistics Centre, which is fully pre-let by a confidential manufacturing company. The second half of a building in Panattoni Park Prague Airport II, with 21,700 sq m, represents the third largest completion of the quarter. The building will be occupied by logistics company - Panalpina.
Projects Under Construction
At the end of Q1 2019, the total of new supply under construction in the Czech Republic amounted to 521,700 sq m. Approximately 18% of that space is located in Greater Prague. During Q1 2019, development works commenced on 42% (i.e. 220,400 sq m) of the total space that is currently under construction across the country. Approximately 39% of the industrial construction pipeline is due for delivery in Q2 2019. The share of speculative floor space under construction has currently increased to 56%.
During Q1 2019, gross take-up, which includes renegotiations, reached 384,700 sq m showing an increase of 24% over Q4 2018 figures. In comparison to the same period of the previous year, gross take-up decreased by 6%. During Q1 2019, the share of renegotiations accounted for 28%.
Net take-up in Q1 2019 totalled 277,400 sq m, showing an increase of 48% on the previous quarter figures. The year on year comparison is showing an increase of approximately 53%. Net demand in Q1 2019 was driven mainly by manufacturing companies (57%).
Major Leases within Take-up
The largest new transaction in Q1 2019 was a pre-lease of 18,500 sq m by logistics company - DB Schenker in industrial park Finapra Mnichovo Hradiště. The second largest transaction was a new lease of 16,200 sq m by DHL Supply Chain in Prologis Park Prague D1 West II. The largest renegotiation in Q1 2019 was concluded by an undisclosed logistics company, prolonging their 22,000 sq m lease in Prologis Park Prague D1 West.
During Q1 2019, the vacancy rate in the Czech Republic reached 4.8%, an increase of 41 bps since Q4 2018. This represents a total of 380,300 sq m of modern industrial premises ready for immediate occupation. Vacancy in Greater Prague industrial market reached 4.1% at the end of Q1 2019.
Prime headline rents achieved in the Czech Republic slightly increased during Q1 2019 and currently stand at 4.60 EUR/sq m/month. Rents for mezzanine office space stand at between 8.50 and 9.00 EUR/sq m/month. Service charges typically reach around
0.50 to 0.65 EUR/sq m/month.
For further information please contact any member of the Industrial Research Forum: