Industrial

• Stock of “A” class industrial premises for lease reached 9,633,798 sq m and with current project pipeline we expect that 10 mil. mark will be reached next year. 130,035 sq m were delivered to the market. The amount of completed premises so far underperforms in comparison to the last year and probably won't catch up in the last quarter of the year.

• There are currently 621,424 sq m under construction, but if we count projects with ongoing groundworks the number is even higher. The largest project currently in construction is Panattoni park Kojetín for Amazon.

• Vacancy rate dropped for the fifth quarter in a row to 2.46 % as there is an extreme demand from tenants. If we do not count shell and core premises vacancy rate reaches only 1.49 %!

• Number of companies in logistics, e-commerce and fulfillment sector like Rohlik group, Zásilkovna, Linde Material Handling or Amazon are implementing automation solutions to increase productivity.

“Nearshoring of supply chains drives demand by tenants and causes steady drop in vacancy rate. Developers responded to this situation with increased construction activity mostly tailored to the client signed before construction begins. Speculative construction does not reach sufficient level to satisfy prime markets. Industrial market as a whole is influenced by lack of employees, shortage of various commodities like AdBlue or building materials, rising prices and more. All these factors foretell bad times for companies without sufficient capital. Automation and other strategies to secure labor productivity will play a central role in the future,” said Michal Bílý, research analyst at 108 AGENCY.

Selection_of_transactions_and_range_of_rents CR (Q3-2021)

Average monthly rents

€ 4.30/sq m – € 5.50/sq m

Total stock

9,633,798 sq m

Vacancy rate

2.46 %

Currently under construction

621,424 sq m

Yield "A" class

4.15 %

Yield "B" class

6.00 %