Industrial construction report for Q2 2017
Second quarter of 2017 brought to the Czech industrial real estate market total number of 13 newly completed projects extending the supply for more than 208.000 sq m of leasable spaces, exceeding the milestone of 6,6 million sq m of total market stock.
With more than 57.000 sq m of completed construction the leading position goes to the region of Pilsen, thank to the projects of the developer Panattoni. The region retains its position also in year-to-year comparison, with the increase of 20% by total finished area in the time period of Q2. Following is the region of Greater Prague, reporting 45.000 sq m of new premises in 3 industrial parks. Significant role plays also the finalisation and handover of 21.000 sq m in the industrial zone Březhrad in the region Hradec Králové, where the new distribution centre of the company Ahold starts the operation.
From the commenced construction point there can be seen ongoing trend of strong interest from the side of investors to further develop the warehousing projects throughout the country, with special attention brought to the lately very attractive regions of Ústí nad Labem and Karlovy Vary. Both of them are capitalizing on the infrastructure connection to Germany (specifically D8 highway finalisation and D6). In the second quarter of 2017 there has been started the construction of more than 74.000 sq m. In the total numbers for the country, the construction activity in Q2 exceeded 450.000 sq m of new projects. The current market situation is summarized by Jiří Klenk, Business Director in 108 AGENCY: „Lowest vacancy rates combined with the current market demand for the new industrial premises result in the situation that even the speculatively build projects find the tenants right after the construction commencement.“ Market analysis of 108 AGENCY also suggests that no dramatic changes in the vacancy rate are expected. The current vacancy rate is 4,7 %.