Foreign companies and investors like the Czech Republic mainly thanks to its easily-accessible location and qualified and relatively inexpensive workforce. Many international companies, mostly from the automotive or engineering industry, are shifting their production here.
Logistics is also booming. People are already buying goods online and the development of e-commerce and changes in consumer behaviour have led to an increase in the number of distribution centres for the local and foreign markets. These trends also affect the real estate market in our country – currently there are almost 6.26 million m2 of modern industrial warehouses and halls in the Czech Republic in operation.
Occupancy is growing, larger halls are lacking
Over 95% of all available logistics and industrial buildings were occupied in 2016. Just the occupancy rate of the halls and warehouses themselves, which is growing year-on-year, are taken by developers as an indicator for further construction. At the same time, the demand for renting warehouse and production premises reached a record value of almost 1,456 thousand m2 in 2016. If you are looking for less space, there are still 297 thousand m2 of modern warehouses and production halls available in the Czech Republic. However, in some regions there is a lack of free industrial property exceeding 10 thousand m2.
New halls continue to be constructed
Last year, 41 new industrial buildings with a total area of 501,000 m2 were completed in the Czech Republic. However, developers face a lack of suitable land for additional construction in the vicinity of Prague and Central Bohemia. Finding a suitable plot of land for large XXL warehouses is almost impossible, which is why activities are gradually moving outside the capital city of Prague and its surroundings. An example is the completion of the construction of the one-storey logistics centre Mountpark in Pilsen, intended for the Western European market, with an area of almost 44,000 m2. New development projects are also being launched this year. In the last quarter of 2016, industrial buildings with a total area of approximately 482,000 m2. In spite of the increase in the volume of supply of storage and production halls, developers do not have to worry about increasing vacancy of these buildings. 70% of the buildings currently under construction are already leased. It does not have a negative impact on the cost of renting industrial buildings, which has remained stable at 4.35 EUR m2 per month.
/Picture of Mountpark in Pilsen/