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Warehouse Market News

​​The industrial real estate market will grow by almost 900 thousand square meters in 2025

The fourth quarter of 2024 did not bring any significant change to the industrial and logistics real estate market. Although demand returned almost to pre-Covid volumes, the number of newly completed buildings remained low. Only 106,700 square meters of new space were delivered, which is the lowest in the last three years. The vacancy rate increased by 3 basis points to 3.13% and the highest rent achieved stabilized at around €7.50 per square meter. Given that many projects planned for this year have been postponed, the development for 2025 looks significantly more positive, with 870,300 square meters of new space expected to be completed. This is according to a regular quarterly survey conducted by Colliers.

Construction of the Logicor Prague-Průmyslová park has begun: last-mile logistics solutions in Prague

• Strategic location close to major highways • Aiming for BREEAM Very Good certification • Ideal for city centre deliveries and last mile logistics

VGP has acquired C.S.CARGO as a new tenant for its park in Liberec

VGP, a leading European owner, manager and developer of industrial and logistics properties, welcomed a new tenant to VGP Park Liberec at the start of the year. C.S.CARGO, a Czech logistics company with multinational operations, leased a hall with a total area of ​​almost 12,060 m², which includes 8,223 m² of warehouse space, 893 m² of offices and 2,944 m² of outdoor shelter. The premises were taken into use at the beginning of January. The building is aiming to obtain BREEAM In Use recertification at the Very Good level.

P3 leased over 230,000 square meters in the Czech Republic last year, a third of which to large logistics players

P3 Logistic Parks, an owner and developer of industrial properties, has signed lease agreements for a total of 230,006 m2 in the Czech Republic in 2024. It has leased more than a third to logistics companies such as DB Schenker, DHL and Vit Logistics, and has also seen interest from manufacturing companies and e-shops.

A record amount of industrial space is under construction in the Czech Republic

The industrial real estate market is set for a breakthrough year that could bring a more significant market recovery. Increased tenant activity is expected, with warehouse automation returning to the forefront among the factors influencing demand due to the shortage and rising labor costs across Europe. This is according to a study by Savills. In the Czech Republic, the most industrial space is currently being built or completed in the Karlovy Vary, Pilsen and Moravian-Silesian regions, where a total of 763,000 m2 was under construction at the end of 2024. The most active developers in these areas are Panattoni and CTP Invest.

Industrial production in the Czech Republic fell by 1.4% year-on-year last year, with the largest decline in the production of machinery and equipment.

Industrial production was 1.4% lower year-on-year in 2024. This is stated in the current press release of the Czech Statistical Office. In December 2024, production was 1.6% higher month-on-month in real terms, but it fell by 3.0% year-on-year. Representatives of suppliers of logistics systems and cardboard packaging responded to the published data for the portals of the magazines Systémy Logistiky and Svět balení.

Czech warehouses and production spaces are getting cheaper. Foreign companies are responding with increased demand

The real estate consulting company 108 Real Estate has been registering an increase in demand for warehouse and production space in the Czech Republic since the last quarter of last year. According to it, the increasing interest is mainly due to the flexibility of developers, gradually decreasing rents, greater availability of labor, as well as the current condition of the domestic automotive segment. For some longer-term leases, the effective rent, i.e. after taking into account incentives, has fallen below four euros per square meter per month. This is a price that the domestic industrial real estate market has not seen for several years. According to the consultants, this is a positive impulse for a number of international companies and operators looking for suitable space in the Central and Eastern European region.

A new industrial park will be built near Ostrava Airport

Development company Panattoni, in cooperation with the investment group Accolade, announced the completion of the acquisition of land near the highway and railway junction and Leoš Janáček Airport in Mošnov. The companies have acquired space here for the construction of an industrial complex called Panattoni Park Ostrava Airport.
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