Industrial Market Czech Republic Q2 2024
Knight Frank Czech Republic presents regular logistics and industrial market update on the Czech real estate market for the second quarter of 2024. Summary of current data:
- The vacancy rate has been continually increasing since 2022 up to the level of 3.5 % in Q2 2024
- Average current rent decreased by 3.8 % in annual comparison
- Compared to previous quarter we have recorded a rise in take-up in Q2 2024 mainly due to one large pre-lease in Moravia-Silesia of more than 100,000 sq m
„The vacancy rate has been rising
continuously since the end of 2022. In the second quarter of this year, it reached a level
of
3.5%, with the last higher vacancy rate recorded in
the first quarter of 2021.
The vacancy rate is also increasing in
locations
with
traditionally low vacancy rates - in the Greater Prague area
or
in the South Moravian Region.
The supply of rental space is increasing, with more
warehouses in "shell & core" condition. These market conditions
create pressure to make rental conditions more attractive. However, we should not expect a drop of several EUR units, but rather an
increase in incentives from developers, greater flexibility in lease terms and
other commercial aspects.
The gap in rental rates between regions
is beginning to widen again, just as it did before Covid, when a shortage of
space caused an
increase in rents across the board.
There is a lot to choose from, so I
highly recommend reviewing current contracts.
The industrial real estate market is thus
undergoing stabilization and a return to a healthy competitive environment
after the Covid period.“
MARKÉTA VRBASOVÁ, DIRECTOR, HEAD OF INDUSTRIAL & LOGISTICS
For more information you can download the report below. We will be happy to answer any questions you may have about the investment data or anything else related to the property.
We are your partners in property.
Markéta Vrbasová
Head of Industrial & Logistics
marketa.vrbasova@cz.knightfrank.com
+420 724 325 331
Lenka Šindelářová
Head of Research and Consultancy
+420 602 773 592
Pavla Kubíková
Senior Researcher
+420 720 028 221
