The first quarter of 2021 saw record low vacancies in the greater Prague region, affirming consistent high interest in industrial premises in premium locations. High demand is pushing lease prices upwards, with lease prices having grown by 25 % per sqm year-on-year within the Prague cadastral district, for example. The Czech industrial real estate market is being impeded by drawn-out approval processes and a lack of new options in areas with the greatest demand.

VGP has launched construction of the fifth hall in its logistic park VGP Park Pilsen, located in an industrial part of the city’s Bručná quarter. The park is adjacent to the E49 and has access to the D5 motorway. On a land of about 10 hectares, VGP offers nearly 50,000 sqm of lettable area suitable for light manufacturing, logistics and accompanying commercial activities. Tenants of the new warehouse will be DHL Express, leasing 1,113 sqm, as well as Verhoek Europe with 2,170 sqm of logistics space.

Local residential developer JRD is entering the commercial segment. The company plans to build its first office project, Viadukt Anděl in Prague 5.

Colliers Czech Republic secured the expansion of the Tchibo distribution centre in the Panattoni Park Cheb industrial zone, which was agreed upon by the developer Panattoni and Tchibo in the first quarter of 2021. The warehouse thus ranked second behind the Amazon distribution centre at Panattoni Park Prague Airport near Dobroviz in Central Bohemia. The modern hall is financed and the Cheb industrial zone is owned by Accolade.

Industrial developer P3 is preparing the construction of a modern industrial park in Myslinka, located about 15 km from the centre of Pilsen, which will offer 64,000 sqm of space to potential tenants. Construction of the first buildings is expected to be completed in the second quarter of this year. A total of five buildings will provide units ranging from 3,000 sqm to 30,000 sqm.

Tétris, a designer and implementer of office and retail space, that belongs to the portfolio of real estate consulting company JLL, has a new CEO of its Prague branch. Lucie Loudová, who was hired as the company's business development director in 2019, is now taking over the directors’ position as well.

Cushman & Wakefield has summarised the first quarter of 2021 in the CEE commercial real estate market. Investment volume at the end of the first quarter stands at €2 billion, down by around 20% compared to the same period in 2020.

Amphenol, a major producer of electronic and fibre optic connectors, cable and interconnect systems, is relocating its production plant within Ostrov in the Karlovy Vary Region. Panattoni Park Ostrov North was created by revitalizing the devastated site after the Škoda Pilsen trolleybus production plant, one of the largest brownfields in the Czech Republic.

Ikea extended its lease contract at Segro Logistics Park Prague in the vicinity of the Václav Havel Airport. It will continue leasing the warehouse space totalling almost 12,500 sqm in the building it uses as a goods pick-up warehouse for its customers. The lease transaction was assisted by Cushman & Wakefield.

A total investment volume of €290 million was transacted in the Czech Republic during the first quarter of 2021, according to Savills’ latest research. Without the exceptional €1.3 billion Residomo portfolio sale transaction, the investment volume was only down by 8% y-o-y.