The Industrial Research forum is pleased to announce the preliminary Industrial Market figures for Q4 2017.

New Supply in Q4 2017

In Q4 2017, industrial space totalling 255,300 sq m was completed within 14 industrial parks across the Czech Republic. Major completions include a distribution centre for 4PX at VGP Park Jeneč totalling 66,200 sq m, a new building of 32,700 sq m at VGP Park Chomutov partly delivered for Magna (41%) and a built to suit hall for KION Group in Panattoni Park Stříbro (26,500 sq m). Speculative construction accounted for 33% of all new developments completed in the last quarter of 2017.

In 2017, new supply totalled 685,400 sq m which represents year-to-year increase by 24%. The total stock of modern industrial storage space increased to 7.0 million sq m.

Projects under construction

There was 504,300 sq m of storage and industrial space under construction at the end of Q4 2017. Approximately 40% of that space is located in the Greater Prague. During Q4 2017 development works started on 10% (i.e. 51,600 sq m) of the total space that is currently under construction across the country. Almost 70% of the industrial construction pipeline is due for delivery in the Q1 2018. The share of speculative development under construction increased to 34%.

Rent

Prime headline rents achieved in the Czech Republic remained stable during Q4 2017 and currently stand at 4.50 EUR/sq m/month. The rents for mezzanine office space stand at between 8.50-9.00 EUR/sq m/month. Service charges typically reach around 0.50- 0.65 EUR/sq m/month.

Further market data including take-up and vacancy will be published by the Industrial Research Forum in two weeks’ time.

For further information please contact any member of the Industrial Research Forum: