Industrial research forum
PROJECTS UNDER CONSTRUCTION
At the end of Q2 2020, the total stock under construction in the Czech Republic amounted to 441,600 sq m. Approximately 33% of that space is situated in the Moravian-Silesian Region and 26% is in the Pilsen region. During Q2 2020 development works commenced on 76,300 sq m of industrial space. The share of speculative floor space under construction decreased to 42% during the quarter.
During Q2 2020, gross take-up, which includes renegotiations, reached 360,500 sq m showing a slight increase of 13% compared to Q1 2020 figures. In comparison to the same period of the previous year, gross take-up decreased by 14%.
During Q2 2020, the share of renegotiations accounted for 47% which is a slight decrease compared to the previous quarter (66%).
Net take-up in Q2 2020 totalled 191,500 sq m, showing a significant increase of 76% quarter-on-quarter, but a 15% decrease year-on-year. Net demand in the second quarter was driven mainly by logistics companies, which accounted for 28% of the total volume, closely followed by manufacturing companies, which accounted for 27%.
MAJOR LEASES WITHIN TAKE-UP
The largest new transaction in Q2 2020 was a pre-lease of 60,500 sq m in CTPark Bor, signed by an undisclosed company, which is also the largest lease this year so far. The second largest transaction was a pre-lease of 14,500 sq m in CTPark Prague West in Chrastany, signed by an undisclosed logistics company. The largest non-confidential transaction is the pre-lease of 12,400 sq m in Pilsen West Industrial Park, signed by the car seat manufacturer Faurecia Plzen as an extension of its existing production hall. The company also executed the biggest renegotiation of the past quarter, when it leased 24,800 m2 in Pilsen West Industrial Park.
At the end of Q2 2020, the vacancy rate in the Czech Republic reached 4.6%, which shows the stability and good condition of the industrial market in the Czech Republic in view of the completion of a large number of halls and the economic downturn. In comparison, this is a very small increase of 20 bps compared to the previous quarter, whose vacancy rate we revised at the Industrial Research Forum at 4.4%. A total of 404,800 sq m of modern industrial premises is ready for immediate occupation. Vacancy in Greater Prague reached 2.3% at the end of Q2 2020.
Prime headline rents achieved in the Czech Republic remained stable during Q2 2020 at 4.70 EUR/sq m/month. The rents for mezzanine office space stand between 8.50-9.00 EUR/sq m/month. Service charges are typically around 0.50 – 0.65 EUR/sq m/month.
Source: Industrial Research Forum
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