The modern, developer-led warehouse stock in the Czech Republic has reached 12.02 million sqm in the second quarter of 2024. Approximately 117,500 sqm were delivered to the market within 11 industrial parks. Industrial Research Forum has announced industrial market figures for Q2 2024.
This represents a 53% decrease compared to the same period last year and a decrease of 21% q-o-q. At the time of completion, approximately 57% of the projects were already pre-leased. The largest completion in Q2 2024 was part of a new building in CTPark Žatec (18,700 sqm), which was at the time of completion fully leased to a logistics company Fiege. The second-largest completed project was a building in SmartZone Mikulov (16,000 sqm), which was partially leased to an undisclosed company. The third largest completed project was in CTPark Pohořelice (11,800 sqm), fully leased to multiple tenants.
At the end of Q2 2024, approximately 969,800 sqm of industrial space was under construction in the Czech Republic, representing an increase of 9% compared to the previous quarter and a decrease of 30% compared to the same period last year. Almost 36% of the total space under construction is situated in the Karlovy Vary region, followed by Moravia Silesia region with a 20% share and Prague & Central Bohemia with a 17% share. The share of speculative space under construction increased to 32%. At the same time, developers commenced new construction of 209,700 sqm of modern industrial space in Q2 2024, with 73% of this space speculative.
During Q2 2024, gross take-up, including renegotiations, reached 462,900 sqm. This represents a significant increase of 191% compared to the previous quarter and a 22% decrease compared to Q2 2023. The share of renegotiations decreased by 4 percentage points compared to the last quarter, accounting for the second-largest share of gross take-up (33%). Net take-up in Q2 2024 totalled 311,800 sqm, showing a major increase of 216% quarter-on-quarter and an increase of 15% year-on-year. Pre-leases accounted for the largest share of the gross total, reaching 45%.
“We are witnessing a gradual increase in vacancies, at almost 3%. It’s good news for occupiers as in some regions or locations there might be a chance to negotiate (or renegotiate) more favourable lease terms with landlords,” commented Jiří Kristek, Head of Industrial and Retail Warehousing Team at Cushman & Wakefield. The Industrial Research Forum is not sharing the list of major leases within take-up this quarter, due to the large amount of confidential information.
At the end of Q2 2024, the vacancy rate in the Czech Republic reached 2.9%, representing an increase of 88 basis points q-o-q. Compared to Q2 2023, the vacancy rate increased by 129 bps. A total of 351,400 sqm of modern industrial premises is available for immediate occupation. This is the highest volume of vacant space on the market since Q4 2020.
Prime headline rents decreased slightly to €7.00-7.50 sqm/month. Selected prime locations outside Prague remained stable, achieving around €5.70-6.60 sqm/month. Rents for in-built office space stand between €9.50-12.50 sqm/month. Service charges are typically around €0.75-1.00 sqm/month.
