Industrial market in the Czech Republic

27 January 2010

CBRE regional market update.

The signs of revival of industrial market were witnessed in the second half of the year, however, only the next quarters will show if this trend continues. In Q4 2009, total leasing activity stabilized across the entire Czech market and reached ca. 115,000 sq m. Out of total leasing activity, net take-up accounted for 76% and reached 87,000 sq m, representing an increase by 33% q-o-q. Contrary to the three-year quarterly average new completions of 150,300 sq m, in Q4 2009, only 8,100 sq m in one hall was completed. At the end of Q4 2009, only 63,400 sq m of modern warehouse space in five halls was under construction, a significant y-o-y decrease compared to the 390,000 sq m that were under construction at the end of Q4 2008. Vacancy rare slightly decreased to 18,6%. Net effective rents ranged 3-5Euro/sqm/month