The total area of completed premium industrial properties in the Czech Republic reached 12,430,000 m2 in Q4 2024. Of this, 3.93% was available for lease at the end of the quarter, but when shell & core spaces are included, it was more than 7%. Another 501,000 m2 of space is currently in this state, just before completion. According to data from 108 Real Estate, the most shell & core areas were in the Central Bohemian Region, the Pilsen Region and the Moravian-Silesian Region. The largest buildings in this state are in the Logistics Center Přehýšov by UDI or CTPark Prague North and CTPark in Lipník nad Bečvou.
Gross demand reached a total of 416,000 m2, while net demand, including only new contracts, was 212,000 m2. Most new requests come from companies in the field of fulfillment and general logistics, linked to consumers, especially in Germany and Western Europe, from the manufacturing segment and from the automotive sector. The number of signed contracts for industrial premises in the range from 5,000 m2 to 15,000 m2 is growing.
Largest leases
The largest new contract signed at the end of 2024 concerned CTPark Brno, where Hitachi Energy Czech Republic leased 52,000 m2. The second largest new lease took place in VGP Park Ústí nad Labem City. There, a major fulfillment company leased almost 13,000 m2. The third largest new lease in the last quarter of last year was made by a wholesale company, which leased 12,000 m2 in Panattoni Park Zdice.
"Overall, we evaluate the last quarter of last year very positively, with rental transactions including renegotiations at the level of over 400 thousand square meters. The reduction in rent is mainly influenced by the relative abundance of available space, i.e. greater competition among developers. In the shell & core phase alone, there are around 500,000 square meters waiting for tenants," says Jakub Holec, director of 108 Real Estate, outlining the main indicators of last year.
Despite the above-mentioned rent realized after taking into account incentives at the level of 4 euros/m2/month, the national average reached 5.89 euros before taking into account incentives. There are still locations and completed industrial buildings where owners are demanding even 7.5 euros/m2/month. Overall, however, the willingness of landlords to lower their requirements and meet demand is evident on the market. "Developers are responding to the increasing supply of vacant space by slowing down construction or postponing implementation. In the last quarter of last year, only less than 120,000 square meters of new space were added to the market. However, there are projects with a volume of over one million square meters in various stages of construction," adds Matěj Indra, head of industrial agency at 108 Real Estate. The last few months have also shown a decrease in supply and realized demand in the sublease category.
Companies expect the situation to stabilize This also explains why demand for warehouse real estate comes primarily from the areas of comprehensive services in the logistics and automotive industries. Despite the announced layoffs of several companies in the automotive sector, the entire segment as a whole is gradually growing. This is also evidenced by the record production of cars in the Czech Republic last year.
“When it comes to international tenders related to both of the aforementioned sectors, the position of the Czech Republic could be further improved by record investments in the highway and road network, as well as a more flexible labor market. The next months should be characterized by slightly positive and optimistic developments on the industrial space market in the Czech Republic. The looming trade war between the US and the European Union could further stimulate a new wave of nearshoring, which would provide European industry with an additional boost,” believes Michal Bílý, chief analyst at 108 Real Estate.
