The largest completed industrial hall is a building with a total size of 19,000 m2, located in the Ostrava Airport Multimodal Park complex. At the time of completion, the hall was fully occupied by the production company Continental Barum. The second largest completed building with a size of 17,500 m2, located in the CSPP Planá Nad Lužnicí park, was fully leased to the logistics company C.S.Cargo. The third largest completed project was the hall in CTPark Žatec (11,800 m2), which was leased by the production company Nexen Tire Europe.
Projects under construction
At the end of the second quarter of 2021, almost 690,000 m2 of warehouse and production space was under construction, an increase of 21% compared to the previous quarter. Of the total volume of areas under construction, 22% are located in the Pilsen Region, 21% in Prague and the immediate vicinity and another 21% in the Moravian-Silesian Region. In the second quarter of 2021, the construction of halls with a total area of 226,700 m2 was started, of which 98,000 m2 in the Moravian-Silesian Region. The share of industrial premises under construction without a pre-secured tenant, ie the share of speculative construction, fell by one percentage point to 24% during the second quarter. This is a year-on-year decrease of 17 percentage points.
Ostrava Airport Multimodal Park
Realized demand
Gross realized demand (including renegotiations) totaled 529,300 m2 in the second quarter of 2021, which represents a 31% decrease compared to the previous record quarter, but a year-on-year increase of 44%. Compared to the previous quarter, the share of renegotiations fell by 34 percentage points from 61% to 27%, a year-on-year decrease of 24 percentage points.
In the second quarter of 2021, net demand was the highest in history and amounted to a total of 387,700 m2. Compared to the previous quarter, it is an increase of 29%, compared to the same period last year there was an increase of 107%. The main driver of new demand in the second quarter of 2021 were distribution companies (especially retail and e-commerce), which accounted for 34% of the volume of newly signed contracts, followed by logistics companies with a 31% share.
Significant leases on demand
The largest total transaction in the second quarter of 2021 was the renegotiation together with the expansion signed by the logistics company FM ČESKÁ in the P3 Lovosice industrial park, with a total volume of 60,600 m2. The second largest lease transaction was the renegotiation and expansion with a total size of 35,000 m2 in the CTPark Brno park, which was concluded by the production company Kompan Czech Republic s.r.o. The third largest lease was before the lease in VGP Park Prostějov, where the retail company OKAY had previously leased a hall with a total size of 25,000 m2.
VGP Prostejov
Vacancy
In the second quarter of 2021, the vacancy rate fell again to 3%, a decrease of 53 basis points from the previous quarter and a decrease of 170 basis points compared to the same period last year. At the end of the second quarter of 2021, a total of 280,200 m2 of modern industrial space was on the market ready for immediate occupancy. Vacancy of industrial premises in Prague and the immediate vicinity fell to 1.4%.
Rent
The highest achieved rent of industrial and logistics real estate (so-called prime headline rent) in the Czech Republic during the second quarter of 2021 increased slightly to the level of 5 euros / m2 / month, in Prague and its surroundings to 5.20 euros / m2 / month. The amount of rent for office buildings reached 8.50 -9 euros / m2 / month. The usual amount of service fees ranged between 0.50-0.65 euros / m2 / month.