PL

Czech Republic Overview of the Czech warehouse market

Warehouse & industrial
Industrial Research Forum has announced industrial market figures for Q4 2023 in the Czech Republic. Decrease in volumes of active construction and rise in Shell-and-Core space reflects current market conditions and possible obstacles in the future.

Currently, we monitor a structural change in demand. The importance of manufacturing companies has been growing with over 40 pct share on take-up throughout 2022-2023, slowdown in demand from e-commerce and 3PL companies is evident in total numbers which is not surprising as these two sectors are quite connected. Prime rents are currently stable, and we expect only a slight inflation-driven increase next year mainly in the case of new leases as renegotiations are under different rental frameworks. In some competitive regions, we might experience a downward pressure on rental levels. There is also a shred of evidence for a slowdown in demand caused by the decision-making of clients due to uncertain economic outlook.
Jan Hrivnacky, Head of Industrial Agency, CBRE

Total stock & new supply

The modern developer-led warehouse stock in the Czech Republic reached 11.70 mln sqm in Q4 2023. A total of 271,600 sqm of new warehouse space was delivered to the market within 15 industrial parks across the country. This represents a 56 pct increase compared to last year and a rise of 49 pct q-o-q. App. 84 pct of the newly delivered projects were already pre-leased at completion.

The most significant completion in Q4 2023 was a new building in CTPark Brno (30,500 sqm) occupied by multiple tenants from 3PL and manufacturing. The second largest completed building was in Arete Park Rokycany II (29,500 sqm), which was fully leased to Duvenbeck Logistik, a company from 3PL. The third largest completion was in Garbe Park Chomutov (29,100 sqm), which German optics company Fielmann fully leased.

The most significant completion in 2023 was the completion of building C in GLP Park Brno Holubice (45,500 sqm) leased by multiple tenants.

Projects under construction

At the end of Q4 2023, app. 981,200 sqm of industrial space was under construction in the Czech Republic, representing a decrease of 30 pct compared to the previous quarter and a 20 pct decrease compared to the same period last year. As already mentioned, only 271,600 sqm were delivered this quarter, ca. half of the space that should have been delivered; this is the result of speculative construction, which started last and this year. Nearly 200,000 sqm due to be delivered in Q4 2023 are now halted just before completion, where developers wait to lease the buildings before construction (a state called "Shell & Core"). In addition, over 100,000 sqm were already in Shell & Core before Q4 2023; as such, these buildings do not affect the current construction, new supply, or existing vacancy.

Since Q1 2023, the share of speculative space under construction has slowly risen. In Q3 2023, it grew to 41 pct, but in Q4, it dropped below 30 pct. At the same time, developers commenced new construction of only 130,500 sqm of modern industrial space in Q4 2023, with over 70 pct of this space speculative.

Industrial take-up

During Q4 2023, gross take-up, including renegotiations, reached 396,900 sqm. This represents an increase of 109 pct compared to Q3 2023 figures and a slight increase of 16 pct to Q4 2022. The share of renegotiations increased by 17 percentage points compared to the last quarter and accounted for nearly 40 pct of gross take-up. Net take-up in the fourth quarter of 2023 totalled 242,600 sqm, an increase of 72 pct quarter-on-quarter and a minor increase of 10 pct year-on-year. Pre-leases accounted for the largest share of demand, with 47 pct of total gross take-up.

Overall, both gross and net industrial demand have slowed during 2023. This was expected after the previous strong years, which were supported by several XXL transactions. For the entire year, gross take-up reached 1,520,600 sqm, representing a decrease of 31 pct compared to 2022 and a reduction of 38 pct compared to 2021.

Major leases within take-up

The two most significant transactions in Q4 2023 were signed in Karlovy Vary region. The first was in Panattoni Park Karlovy Vary, where Wacker pre-leased over 30,000 sqm. The second lease was also signed with Panattoni in Ostrov South, where an undisclosed company pre-leased nearly 27,000 sqm. The third largest new transaction happened in CTPark Cerhovice, where an undisclosed manufacturing company pre-leased 21,000 sqm. The largest renegotiation Yusen Logistics signed this quarter in P3 Prague D1, where they renewed their 24,700 sqm premises.

Vacancy

In Q4 2023, the vacancy rate in the Czech Republic reached 1.75 pct, representing an increase of 34 basis points q-o-q and an increase of 94 basis points y-o-y. At the end of Q4 2023, 205,400 sqm of modern industrial space was available for immediate lease. This is the most significant volume of space available for immediate occupation since Q1 2021 when nearly 270,000 sqm were vacant. Given the enormous volume of space being built, the vacancy rate is particularly susceptible to changes in the delivery of speculative projects currently under development. The vacancy rate in industrial warehouse space in the Prague region and the surrounding area is more constrained than the national rate, which has been stable at close to 0 pct since Q2 2021.

In addition, we monitor a large amount of shell and core space without planned delivery. The current amount of vacant space in shell and core exceeds the amount of vacant existing space by over 100,000 sqm. As of Q4 2023, there is some 300,000 sqm of vacant space in shell and core, waiting for a suitable tenant.

Rent

Prime headline rents in the Czech Republic are stabilised, reaching around EUR 7.50-7.70 sqm/month in Q4 2023. Prime rents in selected prime locations outside of Prague follow a similar development, achieving around EUR 5.70-6.60 sqm/month. The rent for mezzanine office space is between EUR 9.50 and 12.50 sqm/month. Service charges are typically around EUR 0.75–1.00 sqm/month.

Industrial Research Forum

The Industrial Research Forum was established in 2010 with its aim to provide clients with consistent and transparent data about the Czech Republic industrial real estate market. The members of the Industrial Research Forum, CBRE, Colliers, Cushman & Wakefield and iO Partners, share non-sensitive information and believe the establishment of the Industrial Research Forum will enhance transparency on the Czech industrial market. JLL has entered into a partnership agreement with iO Partners in the Czech Republic, as of July 1, 2023.

Latest news

Investment & finance

Germany Panattoni Park Voerde changes hands

schedule 19 April 2024
Opr./edited by ANZ

Panattoni has completed a sales transaction in Germany. Clarion Partners Europe has acquired a prime logistics hub for EUR 75 mln near Duisburg.

Material partner

Poland Excellent Fern at Off Piotrkowska

schedule 04 April 2024
Eurobuild CEE

Intensive commercialization of the multifunctional Fern building under construction at Off Piotrkowska Center has begun. A modern building, the construction of which will start at the turn of 2024/2025, offers 4,700 sqm of service space and 2,700 sqm of office space.

ESG

Poland Outstanding Kreo

schedule 18 April 2024
Opr./edited by ANZ

Kreo, Ghelamco's Kraków office project, has achieved BREEAM certification at the Outstanding level. The building also has a WELL and Green Building Standard pre-certificate, and is also in the process of Smart Score, Wired Score and "Barrier-free building" certification.

Investment & finance

Romania Flats, offices and hotels on the agenda

schedule 18 April 2024
Opr./edited by ANZ

One United Properties has unveiled its strategy for the coming years. It plans to triple its residential offer by 2030, expand its commercial sector and build hotels in Bucharest in partnership with global brands.

Investment & finance

Poland EUR 1.5 bln on acquisitions in Poland

schedule 18 April 2024
Opr./edited by ANZ

Baltisse and Straco Real Estate acquire majority stake in Speedwell, expanding reach into Romania and entering Polish market. Speedwell wants to spend at least EUR 1.5 bln on acquisitions in Poland in the coming years. 

Land acquisitions

Germany More land for Garbe

schedule 18 April 2024
Opr./edited by JC

Garbe Industrial Real Estate has secured another plot of land in Rüdenhausen, Germany. The Hamburg-based project developer is planning a logistics centre with a total area of around 19,200 sqm on the site.

Warehouse & industrial

Poland The warehouse giant in Targówek has woken up

schedule 17 April 2024
Eurobuild CEE

The JV of Partners Group and Peakside Capital Advisors has completed the construction of the first warehouse facility in City Point Targówek. The 7,000 sqm building fully leased to DPD Polska is the part of a complex which will provide nearly 100,000 sqm space in the biggest park of last-mile logistics in the Warsaw boundaries.

Retail & leisure

Poland Good start for Polish retail

schedule 17 April 2024
Opr./edited by JC

Cushman & Wakefield has summarised the situation on the Polish retail market. The opening of 2024 is encouraging and new retail space supply in the coming months is likely to match or even surpass last year’s total.

Residential

Germany Berlin residential market report 2024

schedule 17 April 2024
Opr./edited by ANZ

According to the Berlin 2024 Residential Market Report by real estate financier Berlin Hyp and real estate service provider CBRE, purchase prices have fallen, while pressure on the rental housing market continues to increase. As a result, rental prices are continuing to rise sharply.

Hotels

Germany IHG doubles in Germany

schedule 17 April 2024
Opr./edited by JC

IHG Hotels & Resorts and Novum Hospitality announced a long-term agreement that will double IHG’s presence in Germany to more than 200 hotels in almost 100 cities through Holiday Inn – the niu brand collaboration and European debuts for IHG’s Garner and Candlewood Suites.

Warehouse & industrial

Poland Hillwood makes its debut near Poznań

schedule 17 April 2024
Opr./edited by ANZ

Hillwood Polska has started its first investment in the Poznań market. As part of the Hillwood Poznań - Czempiń project, the company is building a warehouse complex of nearly 130,000 sqm.

Retail & leisure

Czech Republic Prague’s Černý Most shopping mall will grow

schedule 16 April 2024
Opr./edited by ANZ

Centrum Černý Most, a shopping centre in the Prague region, is set to undergo a significant expansion of 9,100 sqm that will add over 30 new shops and restaurants, as well as additional screens to the centre’s multiplex cinema.

Office & mixed-use development

Poland The Bridge has gained its height

schedule 16 April 2024
Opr./edited by ANZ

The structure of The Bridge skyscraper in Warsaw's Wola district has reached its final height, i.e. 174 m. The builders have just completed the last technical floor. Installation and finishing works inside the facility and the assembly of the facade are in progress.

Retail & leisure

Poland Glinianka changes hands

schedule 16 April 2024
Opr./edited by JC

Redkom Development sold 100 pct of shares in the company holding the Glinianka complex. The retail park, located near Warsaw, has been bought by CEE-Big Europe.

Warehouse & industrial

Poland The logistics park in Sulechów is ready

schedule 16 April 2024
Opr./edited by ANZ

Panattoni has finished the last stage of Panattoni Park Sulechów III. The centre has been developed for BestSecret, a European members-only online destination for premium and luxury off-price fashion. The building has a total area of 136,000 sqm, which makes it one of the largest logistics centres in the region.

Warehouse & industrial

Germany CTP builds for Quanta

schedule 16 April 2024
Opr./edited by JC

CTP has signed a deal with Quanta Computer, a Taiwanese company that manufactures computers and electronic hardware, for a 22,500 sqm production facility at CTPark Jülich in northwest Germany.

Warehouse & industrial

Poland Fresenius stays with Prologis

schedule 16 April 2024
Opr./edited by JC

Medical company Fresenius Medical Care has renegotiated its lease of 3,900 sqm of warehouse space and 120 sqm of office space in Prologis Park Poznań.

Events

Poland Piotr Kroenke (1950-2024)

schedule 15 April 2024
Eurobuild CEE

We regret to inform you that Piotr Kroenke, long-time general director of GTC and co-creator of many of the company's successes, has passed away.

ESG

Poland BIK Park Sosnowiec II is now BREEAM certified

schedule 15 April 2024
Opr./edited by ANZ

BIK Park Sosnowiec II has successfully passed the BREEAM certification at the Very Good level. Last year, BIK Park Wrocław I and II - two other properties from the portfolio of Biuro Inwestycji Kapitałowych - went through the same assessment process.

Investment & finance

Romania Retail is strong in Romania

schedule 15 April 2024
Opr./edited by JC

According to the special research report Romania Retail Destinations 2024, released by CBRE Romania, by the end of 2024 the stock of modern retail spaces in the country will overpass 4.5 mln sqm. It will set a new record for Romania.

Latest in Warehouse & industrial

schedule 17 April 2024

The warehouse giant in Targówek has woken up

The JV of Partners Group and Peakside Capital Advisors has completed the construction of the first warehouse facility in City Point Targówek. The 7,000 sqm building fully leased to DPD Polska is the part of a complex which will provide nearly 100,000 sqm space in the biggest park of last-mile logistics in the Warsaw boundaries.

schedule 17 April 2024

Hillwood makes its debut near Poznań

Hillwood Polska has started its first investment in the Poznań market. As part of the Hillwood Poznań - Czempiń project, the company is building a warehouse complex of nearly 130,000 sqm.

schedule 16 April 2024

The logistics park in Sulechów is ready

Panattoni has finished the last stage of Panattoni Park Sulechów III. The centre has been developed for BestSecret, a European members-only online destination for premium and luxury off-price fashion. The building has a total area of 136,000 sqm, which makes it one of the largest logistics centres in the region.

schedule 16 April 2024

CTP builds for Quanta

CTP has signed a deal with Quanta Computer, a Taiwanese company that manufactures computers and electronic hardware, for a 22,500 sqm production facility at CTPark Jülich in northwest Germany.

schedule 16 April 2024

Fresenius stays with Prologis

Medical company Fresenius Medical Care has renegotiated its lease of 3,900 sqm of warehouse space and 120 sqm of office space in Prologis Park Poznań.

schedule 12 April 2024

Panattoni delivers in Krakow

Panattoni has built another facility in Lesser Poland, City Logistics Krakow Airport II. The investment was made on a speculative basis and already has its first tenant – Allegro.

schedule 12 April 2024

Marelvi is set to stay at MLP Bucharest West

Marelvi, a distributor of electronics and home appliances in Romania, has extended its lease agreement for more than 8,100 sqm of space at the MLP Bucharest West logistics park. 

schedule 10 April 2024

Midocean takes more and more

Panattoni has launched the construction of Panattoni Park Ruda Śląska IV. A major tenant has already been found with Midocean to lease 20,000 sqm of storage space, including an extension option for a further 10,000 sqm.

schedule 08 April 2024

Hermes by the German border

Panattoni has finished the construction of a logistics centre for Hermes Fulfilment. This is the first project that has been built for the company in Poland.

schedule 04 April 2024

For the seventh time for K-Flex

Panattoni is developing another BTS project for K-Flex – an international manufacturer of elastomeric thermal and acoustic insulation materials. A seventh building of 20,000 sqm in the warehousing and manufacturing complex in Uniejów will be completed in June this year.

schedule 04 April 2024

Maracana won't move out

Maracana, a company specialising in transport, warehousing, logistics and distribution services, has renewed its lease contract for 5,000 sqm at the MLP Bucharest West logistics park.

schedule 03 April 2024

Etron has chosen CTP

CTP has leased 3,600 sqm of production space at CTPark Oradea Cargo Terminal to Etron Technology. The Asian EMS company is a supplier for PCBA, with customers focused mainly on fields like industrial control, medical, automotive, communications, new energy, and high-end consumer products.

schedule 03 April 2024

Accolade picks up Chomutov plot

Czech warehousing investor Accolade has acquired for an undisclosed sum a 20 ha plot from two international owners in Chomutov in the Ústí nad Labem region for an industrial-logistics development.

schedule 28 March 2024

Panattoni has secured millions

Panattoni has won financing for the development of its latest development in Western Pomerania. The EUR 20 mln loan was granted by mBank.

schedule 27 March 2024

Malaysian debut in Poland

Malaysian retail chain, MR D.I.Y., begins operations in Polish market at Hillwood Zgierz I. The company has leased nearly 5,000 sqm at the park to set up its first logistics center in Central Europe.

schedule 27 March 2024

7R enters Czech market

The 7R Group has been granted permission to build a warehouse in the Czech Republic. This is the first foreign project for the company, which has experienced dynamic growth in Poland for 15 years. The value of the investment comes to more than EUR 30 mln.

schedule 26 March 2024

Outsourcing for e-commerce in Syców

Logistics operator 3LP, specialising in automated outsourcing of logistics services for e-commerce sector, is opening its next location. The company has leased 17,000 sqm in the Hillwood Syców logistics park.

schedule 25 March 2024

Yusen Logistics chooses CTPark Bucharest

CTP has agreed a five-year lease for 19,000 sqm of warehouse space at CTPark Bucharest in Romania to Yusen Logistics, a global logistics provider.

schedule 25 March 2024

Panattoni sells in Wrocław

Panattoni has finalised the sale of a centre in Lower Silesia. An international real estate company has purchased Panattoni Park Wrocław West Gate with a total area of 46,900 sqm.

schedule 21 March 2024

Hillwood's first tenant in Łazy

Entalpia Europe has become the first tenant of the Hillwood Łazy logistics centre. The company, which specialises in solutions for the HVAC-R industry, has leased 14,000 sqm of warehouse space and 1,200 sqm, of office space.

Edition 4 (287) April 2024

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