The sale of the ProLogis logistics park in Ostrava is among the transactions that CBRE has been involved this year. The industry is thriving in the entire Moravian-Silesian region. What are the reasons?
CBRE is the market leader in investment consultancy in the industrial sector. In the last twelve months, it has been involved to 94 percent of all industrial property investments transactions in the Czech Republic, which amounted to around 1.05 billion euros. Among CBRE’s deals last year there was also the sale of the ProLogis logistics park in Ostrava. Its new owner is CBRE Global Investors.
The strategic location is a plus
65,910 m² of warehouse and office space strategically located – just one kilometre – from the D1 motorway and about 20 kilometres from the international airport in Ostrava. The current tenants, Geis, AT Computers, B2B Partners, Booklogistics and Pyro Moravia, can centrally manage the entire Central European market, and is not so far away from the north of Slovakia or south of Poland. “Investments in the industrial sector are very attractive for investors, thanks to the record high demand among tenants and falling vacancy rates” remarked Chris Sheils on the transaction, Head of Investment Properties CBRE.
The industry is thriving in the Moravian-Silesian Region
It should be added that the industrial sector is thriving in the entire Moravian-Silesian region, as it has seen one of the largest drops in vacancy rates in the Czech Republic, from ten to two per cent since the end of 2015. Occupancy currently fluctuates at 97.25 percent, better than the national average of 95.3 percent. At the same time, there are more than sixty thousand job seekers, with an unemployment rate of 7%, the highest of regions in the Czech Republic. Employers can find a new labour force here, which enhances the attractiveness of the region.
Demand is driven by production and logistics
According to Berta Hesselink, CBRE’s Head of Industrial & Logistics, the demand for industrial real estate is mainly driven by manufacturing and logistics companies. “There is growth in production and logistic operations, which are associated with increased demand for production and storage facilities. Industrial real estate is a great investment opportunity, not only for these reasons,” he explained. He also predicts that the main demand drivers in the sector will be the automotive, logistics and e-commerce.