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
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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