More speculative industrial development in the Czech Republic – EuropaProperty

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

In 2017, new supply totaled 685,400 sqm which represents year-to-year increase by 24 percent. The total stock of modern industrial storage space increased to 7.0 million sqm.

Projects under construction

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

Rent

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

About the Industrial Research Forum

The Industrial Research Forum was established in 2010 with its aim to provide clients with consistent, accurate and transparent data about the Czech Republic industrial real estate market. The members of the Industrial Research Forum, CBRE, Colliers, Cushman & Wakefield and JLL, share non-sensitive information and believe the establishment of the Industrial Research Forum will enhance transparency on the Czech industrial market.