General view of the industrial real estate market

At the end of the third quarter of 2020, the Czech premium industrial real estate market reached a total area of ​​9.04 million m2. In the period from July to September this year, over 130,000 m2 of new warehouse space was completed. Completed construction this year has already caught up with the figures for the whole of last year and now has the potential to show growth again after a few years.

Vacancy reaches 5.52%

Vacancy continues to grow slightly and now stands at 5.52%. According to ongoing information, the decline is expected in the fourth quarter of 2020. Speculative construction is gradually finding its tenants, so vacancy should gradually decrease next year.

Construction - lack of vacant space is in Prague and its surroundings

387,500 m2 of new premium space is currently under construction, which is a similar value as in the previous quarter. However, Prague and its surroundings are still a region characterized by a lack of new space for wider development of new premises, although the growth potential is great. Future improvements in industrial development opportunities must be preceded by better cooperation between companies, local authorities and other government institutions.

The greatest attention is still paid to the regions bordering Germany and the South Moravian and Moravian-Silesian regions.

Rents increased only slightly in 2020

The average rent of modern warehouse space in Prague is at the level of 4.30 - 5.00 EUR/m2/month. In Brno, it ranges from 4.00 to 4.80 EUR/m2/month. In 2020, rents increased only very slightly on average. The average for the Czech Republic in the third quarter is 4.34 EUR/m2/month.

The largest transactions took place in the third quarter in the Pilsen Region

Gross demand reached 316,948 m2 in the third quarter and net (without prolongations) 199,806 m2 (972,127 m2 gross and 555,190 m2 net in Q1-Q3 2020). The largest transactions took place in the third quarter in the Pilsen Region. Short-term leases again reached a value of around 43 thousand m2.

 

Source:// Logistické systémy