The Industrial Research Forum is pleased to announce the final Industrial Market figures for Q1 2019.

Total Stock & New Supply

The total modern developer-led warehouse stock in the Czech Republic currently stands at 7.97 million sq m. Approximately 168,300 sq m was newly delivered to the market in Q1 2019 within 13 industrial parks across the Czech Republic. This level of supply represents a 21% decrease compared to the same period of the previous year and a decrease of 3% in comparison with the previous quarter.

Major completions included a 56,300 sq m building in Ostrava Airport Multimodal Park, out of which 65% has been already leased. The second largest building to be completed (23,500 sq m) is located in the Goodman Mladá Boleslav Logistics Centre, which is fully pre-let by a confidential manufacturing company. The second half of a building in Panattoni Park Prague Airport II, with 21,700 sq m, represents the third largest completion of the quarter. The building will be occupied by logistics company - Panalpina.

Projects Under Construction

At the end of Q1 2019, the total of new supply under construction in the Czech Republic amounted to 521,700 sq m. Approximately 18% of that space is located in Greater Prague. During Q1 2019, development works commenced on 42% (i.e. 220,400 sq m) of the total space that is currently under construction across the country. Approximately 39% of the industrial construction pipeline is due for delivery in Q2 2019. The share of speculative floor space under construction has currently increased to 56%.

Industrial Take-up

During Q1 2019, gross take-up, which includes renegotiations, reached 384,700 sq m showing an increase of 24% over Q4 2018 figures. In comparison to the same period of the previous year, gross take-up decreased by 6%. During Q1 2019, the share of renegotiations accounted for 28%.

Net take-up in Q1 2019 totalled 277,400 sq m, showing an increase of 48% on the previous quarter figures. The year on year comparison is showing an increase of approximately 53%. Net demand in Q1 2019 was driven mainly by manufacturing companies (57%).

Major Leases within Take-up

The largest new transaction in Q1 2019 was a pre-lease of 18,500 sq m by logistics company - DB Schenker in industrial park Finapra Mnichovo Hradiště. The second largest transaction was a new lease of 16,200 sq m by DHL Supply Chain in Prologis Park Prague D1 West II. The largest renegotiation in Q1 2019 was concluded by an undisclosed logistics company, prolonging their 22,000 sq m lease in Prologis Park Prague D1 West.

Vacancy

During Q1 2019, the vacancy rate in the Czech Republic reached 4.8%, an increase of 41 bps since Q4 2018. This represents a total of 380,300 sq m of modern industrial premises ready for immediate occupation. Vacancy in Greater Prague industrial market reached 4.1% at the end of Q1 2019.

Rent

Prime headline rents achieved in the Czech Republic slightly increased during Q1 2019 and currently stand at 4.60 EUR/sq m/month. Rents for mezzanine office space stand at between 8.50 and 9.00 EUR/sq m/month. Service charges typically reach around 

0.50 to 0.65 EUR/sq m/month.

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