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The pace of warehouse occupation is slowing down. The main reason is concern about the development of the automotive industry

The pace of warehouse occupation is slowing down. The main reason is concern about the development of the automotive industry

A number of new warehouses built on a speculative basis have been waiting for tenants for up to six months or more. This phenomenon, unprecedented in the Czech Republic for many years, is accompanied in some regions by even a slight decline in average rents. If we add to this the lengthening lease holidays, rising vacancy rates and expanding subleases, everything points to the fact that Q3 confirmed the change in the development of the domestic industrial space market - a slowdown. Based on the indicative data, this follows from the analysis of the Czech real estate and consulting company 108 REAL ESTATE. Gross demand reached a total of 158,867 sq m in the period from July to September, while net demand was only 122,186 sq m. This is a record low quarterly result, the worst in the last 7 years.

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Rohlík is expanding into the Moravian-Silesian region. It will serve 250 new towns, including regions without local stores

Rohlík is expanding into the Moravian-Silesian region. It will serve 250 new towns, including regions without local stores

Rohlik.cz, the largest Czech online food retailer, is significantly expanding into the Ostrava region and the entire Moravian-Silesian region - a new strategic distribution centre is being opened in Ostrava. This is the company's fifth warehouse in the Czech Republic, with three already in Prague and one in Brno. Rohlík recently reached the milestone of 1 million customers served. However, the Ostrava distribution centre will help it significantly in reaching out to others. It will offer its services to up to 460,000 additional households and begin serving 250 new cities.

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Poland is a hit among developers, tenants and investors of industrial space. Still catching up with the Czech Republic

Poland is a hit among developers, tenants and investors of industrial space. Still catching up with the Czech Republic

Compared to the Czech Republic, it is four times larger in area and approximately in population. In recent months, it has set an example in many areas of the economy, including the construction, leasing and subsequent sale of industrial space. The supply of commercial real estate is also growing, thanks to massive investment in transport infrastructure and increasing purchasing power. This is most evident in the logistics and manufacturing segment, which has expanded by nearly 2.5 million sqm so far this year to a total of more than 31 million sqm.

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Construction of 7 million m² of industrial space is planned in the Czech Republic, brownfields will not be avoided

Construction of 7 million m² of industrial space is planned in the Czech Republic, brownfields will not be avoided

What unites the Karlovy Vary, South Bohemia, Liberec and Ústí nad Labem regions in terms of industrial property developers? It is not the lowest supply and construction activity in the long term, on the contrary. According to the analysis of the real estate consulting company 108 AGENCY, these four regions are expected to add the most new warehouse and production space in proportion to their current volume in the coming years. In total, the consultants have mapped development projects in the Czech Republic with a floor area of over 6.8 million sqm, which are at various stages of permitting and preparation - from environmental impact assessment, zoning decision/building permit to the first implementation works. 54% of the planned projects belong to three developers: CTP, Panattoni and Prologis.

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Czech logistics and manufacturing are increasingly running on solar power

Czech logistics and manufacturing are increasingly running on solar power

Developers, tenants and owners of industrial and warehouse space in the Czech Republic are currently investing heavily in their own solar power plants. This trend reflects not only the progressive modernisation of the energy sector, but also the gradual move away from dependence on fossil fuels. Within this wave of innovation, we are also seeing extensive technological modifications being carried out in parallel on many buildings, aiming at an overall cut in energy consumption. One of the largest rooftop solar power plants to date is at the Urbanity Campus Tachov industrial park, with a reported installed capacity of 5 MW and an approximate annual production of more than 5,000 MWh of electricity.

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Industrial property market shaped by shorter supply chains and lower carbon footprint

Industrial property market shaped by shorter supply chains and lower carbon footprint

Manufacturing companies are commanding a growing share of industrial property leases in the Czech Republic. In doing so, they are steadily displacing demand from logistics companies and tenants engaged in retail, especially e-commerce. In the second quarter of this year, lettings to manufacturers accounted for 60% of the 266,443 m2 newly leased. When lease renewals are factored in, lettings totalling 567,445 m2 were closed in the second quarter, up 50% on the previous quarter. These figures come from a fresh analysis by 108 AGENCY, one of the leading real estate consultancies for industrial property leases and sales.

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