15. Juli 2010 
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Sharp increase in industrial take-up in the Czech Republic
“DTZ has recorded a sharp increase in leasing activity on the industrial market in the Czech Republic in Q2 2010 with 221,600 sq m being transacted, the highest level in the past two years. This represents a 41% increase on the quarter and a 147% increase compared to the same time last year. Net take-up excluding renegotiations and relocations within stock reached 193,500 sq m in Q2, a 79% increase compared to Q1 2010 and 181% increase compared to Q2 2009. Around one third of the transactions were pre-leases for warehouses that are not yet completed. As development activity remains limited, tenants are increasingly opting for pre-leases. All this confirms that tenants have started taking advantage of the lower rents and secured leases at favourable conditions,” summarizes Lenka Hartmanová, Analyst at DTZ.
West Bohemia had the highest share on net take-up (40%), followed by Greater Prague (25%) and North-East Bohemia (16%), In Greater Prague renegotiations accounted for more than a third of the gross take-up (35%).
After a drop in demand from production firms last year, the Q2 2010 take-up showed a resurgence of manufacturing companies with 50% share on gross take-up (57% on net take-up), followed by 3rd party logistics providers (28%) and end-users (22%). The average deal size in Q2 2010 increased to 6,300 sq m, the median deal size was recorded at 4,500 sq m.
CTP Invest dominated the overall leasing activity in Q2, followed by VGP and ProLogis. The largest transaction last quarter was the expansion of Lear in D5 Logistics Park (19,500 sq m), followed by the lease of Sony DADC in ProLogis Park Stìnovice (18,000 sq m) and extension of Techdata in CTPark Bor (16,300 sq m).
Total stock of modern developer-led logistics and industrial space amounted to 3.36 million sq m at the end of Q2 2010. The only completed project was D+D Zelená Louka in Pardubice (12,000 sq m).
There is currently ca. 99,000 sq m of modern class-A warehouse space under construction but of that only 17,000 sq m are available.
The overall national vacancy rate decreased due to higher take-up from 16.7% to 15.54% in Q2 2010 totalling 522,000 sq m. The vacancy rate decreased significantly in West Bohemia due to several large transactions from 25% to below 20%, but still remains third highest after Moravia Silesia, where the vacancy rate even increased to almost 31% and Central Moravia. In the Greater Prague area the vacancy rate decreased below 17% from 18.2% in Q1 2010.
Headline rents for modern logistics space have remained stable q-o-q at €3.6-4.3 per sq m/ month in Prague, in the regions rents vary between €3.2-4.25. Incentives vary strongly project by project and range from 0-9 month rent free period. “The following 6 months represent a unique opportunity for companies who are still hesitating to acquire modern warehouse space,” adds Martin Šumera, Senior Industrial Agent. “It is forecasted that they will stay stable until the end of the year and start growing in 2011 as vacant space is being absorbed and speculative development will remain limited,” sums up Lenka Hartmanová.
West Bohemia had the highest share on net take-up (40%), followed by Greater Prague (25%) and North-East Bohemia (16%), In Greater Prague renegotiations accounted for more than a third of the gross take-up (35%).
After a drop in demand from production firms last year, the Q2 2010 take-up showed a resurgence of manufacturing companies with 50% share on gross take-up (57% on net take-up), followed by 3rd party logistics providers (28%) and end-users (22%). The average deal size in Q2 2010 increased to 6,300 sq m, the median deal size was recorded at 4,500 sq m.
CTP Invest dominated the overall leasing activity in Q2, followed by VGP and ProLogis. The largest transaction last quarter was the expansion of Lear in D5 Logistics Park (19,500 sq m), followed by the lease of Sony DADC in ProLogis Park Stìnovice (18,000 sq m) and extension of Techdata in CTPark Bor (16,300 sq m).
Total stock of modern developer-led logistics and industrial space amounted to 3.36 million sq m at the end of Q2 2010. The only completed project was D+D Zelená Louka in Pardubice (12,000 sq m).
There is currently ca. 99,000 sq m of modern class-A warehouse space under construction but of that only 17,000 sq m are available.
The overall national vacancy rate decreased due to higher take-up from 16.7% to 15.54% in Q2 2010 totalling 522,000 sq m. The vacancy rate decreased significantly in West Bohemia due to several large transactions from 25% to below 20%, but still remains third highest after Moravia Silesia, where the vacancy rate even increased to almost 31% and Central Moravia. In the Greater Prague area the vacancy rate decreased below 17% from 18.2% in Q1 2010.
Headline rents for modern logistics space have remained stable q-o-q at €3.6-4.3 per sq m/ month in Prague, in the regions rents vary between €3.2-4.25. Incentives vary strongly project by project and range from 0-9 month rent free period. “The following 6 months represent a unique opportunity for companies who are still hesitating to acquire modern warehouse space,” adds Martin Šumera, Senior Industrial Agent. “It is forecasted that they will stay stable until the end of the year and start growing in 2011 as vacant space is being absorbed and speculative development will remain limited,” sums up Lenka Hartmanová.
