News

The Czech industrial space market is expected to grow this year

Decline in rental capacity of automotive companies. Impact of the downturn in heavy industry. Slight but steady decline in e-commerce. High competition from Poland and unfulfilled expectations for the arrival of workers from Ukraine. And a continuing wave of subletting and vacancies even in traditionally most attractive locations. The main analytical outputs based on the results of the Czech industrial space market in the last quarter of last year do not offer much reason for optimism. According to real estate consultancy 108 REAL ESTATE, the opposite is true: the market is starting to revive at the level of developer construction and tenant demand, responding, among other things, to the growing demand for chips. It is being positively affected by falling interest rates and indications of gradually increasing demand from households and businesses.

Vitesco Technologies to open production plant with automated logistics centre in Ostrava-Hrušov

Vitesco Technologies will launch a new production plant with an automated logistics centre in Ostrava-Hrušov. The investment in this project will exceed CZK 4.7 billion. This is the company's next step in sustainable mobility and transformation of the Czech automotive industry, Vitesco reports. The plant is due to open at the end of this year and will be staffed by 150 employees in the first phase, with the number growing continuously to a full capacity of over 1,000 people in 2027.

A new industrial park for high-tech production to be built near Karlovy Vary

The new industrial complex with a planned area of over 23,000 square metres will be built on the western outskirts of Karlovy Vary. The tenant will be the German manufacturing company Wacker, which focuses on the refinement of silicone compounds. The new production plant will also include laboratories and testing facilities. Construction is expected to begin during the second quarter of 2024.

Oxymetal wird eine neue Industriehalle im Arete Park in Pilsen mieten

Der dritte Fonds der Arete-Gruppe, der sich auf Industrie- und Logistikanlagen in der CEE-Region konzentriert, hat die Entwicklung eines Produktionskomplexes im Arete Park Plzeň Borská pole abgeschlossen. Langfristiger Mieter des Standorts wird Oxymetal CZ sein, ein Unternehmen, das sich auf die Metallverarbeitung und die Herstellung von Metallkomponenten für verschiedene Branchen spezialisiert hat, darunter die Automobil-, Energie- und Bauindustrie sowie andere Wirtschaftszweige.

CTP leases over 400,000 sqm of Czech logistics space in 2023

CTP has so far concluded lease deals with a total area of over 400,000 sqm for space in industrial properties in the Czech Republic in 2023, including more than 10 lease contracts for premises larger than 10,000 sqm. The largest transaction was a contract to renew the lease of almost 54,000 sqm of space in CTPark Bor. The developer continues to build new industrial space across the Czech Republic and is confident that the Czech industrial property market will continue to grow.

V Ostravě vzniká nový městský areál. Nabídne jak flexibilní komerční budovy tak rezidenční bydlení.

Progresus and Garbe complete industrial centre in western Bohemia

A new logistics and industrial centre worth CZK 520 million (EUR 21.4 million) was opened in the area between Chomutov and Klášterec nad Ohří (west of Prague near the border with Germany). The construction of Garbe Park Klášterec II with a total lettable area of over 18,000 m2 was completed in eight months. Representatives of the investment group Progresus and the developer and co-investor Garbe have already handed over the building to the main tenant, the German manufacturer of sealing systems Isolite.

The Prague area offers some of the most expensive warehouses in Europe

Only Helsinki, Munich, Oslo, Hamburg, London and several other cities in the UK and Ireland have higher rents in industrial property than Prague. Warehouses around Prague are much more expensive for tenants than in Paris, Rome, Madrid, Budapest or Warsaw. In the case of the Czech capital, it is specifically EUR 96 per sqm per year, with London the most expensive at EUR 313. Berlin is comparable to Prague, while Warsaw posted the highest rent achieved in Q3 at EUR 52 per year. The results come from a joint analysis by Czech real estate and consultancy company 108 REAL ESTATE and BNP Paribas Real Estate.

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.