Record breaking year for Czech industrial market

The Greater Prague area remained the largest industrial market in the country with 2,264 mln sqm and 40 pct of the total stock – more than double the amount of stock registered for the whole of the Czech Republic (1.033 mln sqm) in 2005.

In Q4 2015, the Plzeň region moved ahead of Brno to become the second largest industrial market in the country with 15.5 pct of the stock. Brno now has slightly below 15 pct of the total market. New supply in Q4 2015 amounted to 153,300 sqm, with 17 new projects delivered to the market. Speculative construction accounted for 22 pct of the total. The majority of new completions were situated in the Plzeň region (49 pct). Over the whole of 2015, the total volume of newly built industrial space reached 565,700 sqm, which is the highest figure recorded since the credit crunch. The highest share of new space was delivered in Prague (45 pct) followed by the Plzeň region with 30 pct. The largest project completed last year was the Amazon fulfillment centre in Prague Airport Park I (133,000 sqm), followed by a 62,000 sqm facility for DHL at CTPark Bor in Plzeň.

Gross take-up reached 1.394 mln sqm in 2015, slightly higher than the previous record level registered in 2014 (1.38 mln sqm). Net take-up came to 875,600 sqm, also similar to 2014. The Prague, Plzeň and Brno regions accounted for the highest shares of both gross and net take-up during the period. “2015 was also a record year in Czech history in terms of gross take-up, demonstrating that the Czech Republic remains a strategic location for all industrial sectors,” comments Harry Bannatyne, the head of the industrial agency at JLL.

In Q4 2015, the countrywide vacancy rate fell to 5.1 pct – the lowest figure since the pre-crisis period. At the end of 2014, vacancy rate stood at 8.3 pct. “Demand is dramatically outstripping supply and if this continues, we will see a further reduction in the vacancy rate,” predicts Harry Bannatyne. “Automotive suppliers are still a key driving force of industrial demand in the Czech Republic, accounting for more than 20 pct of all transactions,” he adds.