Industrial Market Czech Republic Q3 2023

13. 11. 2023

Property Image-stock facade of an industrial building and warehouse with freight cars in length.jpg

In Q3 2023, the total lettable modern warehouse and industrial area reached 11.6 million sq m.
215,300 sq m were newly completed, the most in the South Moravian Region (36%) and the Pardubice Region (24%).
1.41 million sq m were under construction, up 23% year-on-year.
In Q3 2023, the vacancy rate increased to 2.3% and as in the previous quarter, the newly completed premises contributed to the increase. The vacancy rate in the Greater Prague area remained unchanged at a very low level of 0.7%.
The prime headline rent for warehouse and industrial premises stayed stable at €6.50 - 7.50 sq m/month.
Gross take-up reached a record low volume of 176,000 sq m, 27% of which were renegotiations.

„In terms of demand for warehouse space, we experienced a very cold summer. Gross take-up was the lowest in the last 10 years. There is a growing number of sublease options in the market, competing with new completions and vacant space in speculative projects. We continue to expect the anticipated increase in demand for manufacturing space, linked to the shortening of supply chains and the growing trend towards self-sufficiency in European distribution flows. However, this trend has not yet been confirmed. Renegotiations accounted for 27% of the total gross take-up of 47,000 sq m in the third quarter. At Knight Frank, we are also currently offering some very interesting investment opportunities".

MARKÉTA VRBASOVÁ
DIRECTOR, HEAD OF INDUSTRIAL & LOGISTICS

I hope you find the information in this report useful.

If you have any questions about our data or if you are interested in any other aspect of industrial property, please do not hesitate to contact us for advice.

Markéta Vrbasová

Head of Industrial & Logistics

+420 724 325 331

marketa.vrbasova@cz.knightfrank.com