Below you can see a regular update of logistics and industrial market in the Czech Republic.

Summary of current data:

• In Q4 2023, the total lettable modern warehouse and industrial area exceeded 11.9 million sq m.

• 287,300 sq m were newly completed.

• The largest completed project in Q4 2023 was a 37,600 sq m hall in CTPark Ostrava Hrušov, which was fully
  let at the time of completion.

• The vacancy rate increased again to 2.6% in Q4 2023.

• The prime headline rent or warehouse and industrial premises stayed unchanged at the level of € 6.50 - 7.50 sq m/month.

• In Q4 2023, gross take-up reached  almost 400,000 sq m, 44% of which were renegotiations.

„Prices for construction materials and rents for class A industrial premises have stabilised compared to last year. On average, current rents have increased by almost 5%, but in some regions, including the Greater Prague area, we have seen a decline.

We believe that 2024 will be further characterised by investment in the latest technologies, robotics and warehouse automation. Only now will the predicted nearshoring, i.e. the shift of supply chains to Central Europe, fully develop, creating a new wave of demand for production and warehouse space.

There will continue to be a focus on efficient warehousing and minimising stock in warehouses, coupled with lower rental costs. Developers who own land with building permit or at least zoning permit will have a competitive advantage from their position. Other older industrial buildings will be gradually re-developed as a part of the renegotiation process.

Locations close to major highways and major cities with a readily available workforce and a focus on ESG standards will continue to be attractive to investors.“

MARKÉTA VRBASOVÁ

DIRECTOR, HEAD OF INDUSTRIAL & LOGISTICS

The full report can be downloaded below.

We like questions, if you’ve got one about our research, or would like some property advice, we would love to hear from you.

Markéta Vrbasová

Head of Industrial & Logistics

+420 724 325 331

marketa.vrbasova@cz.knightfrank.com