Knight Frank Czech Republic presents regular logistics and industrial market update on the Czech real estate market for the first quarter of 2024.
Summary of current data:

• In Q1 2024, the total lettable modern warehouse and industrial area exceeded 12 million sq m.
• New supply reached 135,600 sq m, the highest volumes of new completions were recorded in the Karlovy Vary Region (45%) and the South Moravian Region (26%).
• In total 1.2 million sq m were under construction, with the largest construction taking place in the Karlovy Vary Region (29%).
• The vacancy rate increased again to 3.0% in Q1 2024. The vacancy rate in the Greater Prague area also increased but remained at a low level of 1.2%.
• In Q1 2024, the current rental range for warehouse and industrial premises was at the level of €5.00 - 7.70 sq m /month.
• Gross take-up reached  almost 160,000 sq m, 35% of which were renegotiations.

„In the first quarter of this year, we recorded the lowest take-up in the last 15 years. Year-on-year it decreased by 54%, and quarter-on-quarter by 61%. The strongest demand remains in Prague and its surroundings, with only 100,000 sq m of new lease agreements signed across the Czech Republic. The standard duration of new contracts remains at a five-year period, with continued primary emphasis from both tenants and landlords on securing sustainable and energy self-sufficient properties. Only 136,500 sq m of new space was completed, representing a year-on-year decrease of 47%, however, there is an increase in buildings in the shell and core state. Developers are moving away from speculative construction and are fully focused on occupying new, previously unoccupied spaces. In this regard, their flexibility in terms of incentives and unit prices is increasing. The current rent level of 5.00 – 7.70 EUR sq m /month represents a year-on-year decrease of 4%, and although vacancy is increasing due to the drop in take-up, it is still at a very healthy level. The market continues to add more subleasing options even in units of 10,000 sq m sizes. There is a market correction evident back to the pre-COVID levels."
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 industrial 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 ŠindelářováHead of Research and Consultancylenka.sindelarova@cz.knightfrank.com+420 602 773 592
Pavla KubíkováSenior Researcherpavla.kubikova@cz.knightfrank.com+420 720 028 221