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Warehouse Market News

Nominal and effective rents in industrial premises are falling

The excess of demand for industrial properties over their supply is a thing of the past in the Czech Republic. Rent prices have currently reached their peak. This is also influenced by the drop in sales of domestic e-shops, due to which many companies are trying to reduce their warehouse space, or are more often interested in lease contracts for shorter periods.

Gebrüder Weiss produces its own solar energy in the Czech Republic. In Jenč near Prague, the nearby airport was a challenge

The new PV systems in the terminals in Jenč near Prague and Syrovice near Brno with a total area of ​​5,800 m² are the largest photovoltaic installation by Gebrüder Weiss in Central and Eastern Europe. Thanks to them, the company saves 250 tons of CO2 annually.

The Hanon Systems company is expanding its production facilities in the Kladno-jih industrial zone

The industrial zone Kladno-jih continues to expand. The company Hanon Systems, which operates in the automotive industry, has taken over a new hall with an area of ​​21,000 square meters. As part of the project, which is the result of cooperation between the industrial developer Panattoni and the investment group Accolade, the renovation of the tenant's existing buildings with an area of ​​16,000 square meters is also being completed.

​​The dramatic increase in warehouse prices in the Czech Republic has hit a ceiling, demand is falling

Rents for warehouse space in the Czech Republic have doubled over the past five years, but have currently reached their peak. This is influenced by the decline in sales of domestic e-shops, due to which many companies are trying to reduce their warehouse space, or are more often interested in lease contracts for shorter periods. In addition, high prices drive tenants to neighboring countries, which are up to a third cheaper and offer a wider selection of premises. According to experts from the Colliers company, the vacancy rate outside the Czech Republic is around 5%, which is an advantage compared to the Czech Republic's 2.9%.

CBRE analysis: The subletting trend is slowly but surely starting to affect the industrial and logistics real estate market

The domestic industrial real estate market experienced a real "boom" during the coronavirus pandemic. The record growth of interest in renting new premises, especially from companies linked to e-commerce, triggered extensive speculative construction. However, after two extraordinary years, there was a slowdown in demand last year, which continues this year as well. Although the market situation is stable and positively influenced by the gradual reduction of construction costs in combination with the stabilization of yields, in recent months there has been a slight increase in the vacancy rate and the emergence of two new phenomena on the market. CBRE, a world leader in commercial real estate services, analyzes the growing trend of subletting and targeted maintenance of some properties by developers in the so-called shell & core condition.

Wedo becomes One by Allegro and the group starts operating its own dispensing boxes in the Czech Republic

Logistics operator Wedo is changing its name to One by Allegro. The company thus unifies the name and brand identity in all markets where it currently operates. The rebranding comes simultaneously with the introduction of One Boxes, i.e. Allegro Group's own dispensing boxes, to the domestic market. There are currently over 140 of them in operation, and the group continues to expand its services in the Czech Republic.

Moravia Steel is considering taking over part of Liberty Ostrava's operations

The Moravia Steel Group is seriously considering the possibility of operating some of Liberty Ostrava's secondary production operations. Specifically, it is a pipe laying plant, said Moravia Steel Group spokesperson Petra Macková Jurásková. Liberty Ostrava has been in bankruptcy since June, and most of its operations have been closed since last December.

C.S.CARGO Group continued to grow in 2023

The C.S.CARGO Group achieved significant growth in sales and profitability in 2023, despite adverse economic conditions. Revenues increased to 8 billion crowns, which represents a slight increase compared to 2022. Operating profit (EBITDA) increased by 28% to 701 million crowns. Investments in the renewal of the vehicle fleet, logistics projects and IT technologies reached a total of 376.5 million crowns.

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