2023/Q2 INVESTMENT MARKET REPORT
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In the second quarter of 2023, we see an increase in speculative construction by developers who, despite high construction costs, expensive financing and the uncertainty of the overall macroeconomic situation, are willing to take risks, mainly in areas with shortage of available warehouse spaces and strong demand. more
No new construction has started in the last 12 months... more
In the second quarter of 2023, we saw a significant increase in industrial vacancy. This is the third consecutive quarter with increasing vacancy, however, it is still well below a healthy level. Higher vacancy increases the negotiating position of tenants and opens up new opportunities for incentives or shorter-term leases. The unfavorable economic situation is pushing down demand from companies in lower-margin sectors such as logistics and transportation and increases demand from companies in.. more
Since the end of last year, we have been observing an increase in rents in all regions of Slovakia. Currently average price reaches 4.90 euros per square meter. In popular logistics hubs or major cities like Bratislava, Kosice or Zilina, warehouse lease rents tent to be higher due to higher demand and better infrastructure. However, according to economic indicators, we do not expect further significant price increase in the future. more
Office space construction is in decline... more
The wave of record construction of new warehouse and production buildings reached its peak at the end of last year. Since January, the market for industrial premises has been limited by the increasingly long decision-making process of companies related, among other things, to the continuing increase in average rent. The lengthening deadlines for the completion of projects already under construction also have an impact. more
Investment volumes dominated by one portfolio transaction. more
We are pleased to present the CEE Investment report 2022, prepared by 108 AGENCY jointly with our BNP Paribas Real Estate Alliance partners in the CEE region, BNP Paribas Real Estate Poland and Fortim Trusted Advisors in Romania. more
According to the results of the 4th quarter of 2022, companies in Slovakia and the Czech Republic have to deal with a jump in lease indexation, lower customer consumption, growth in service fees and, of course, increased energy costs. more
Rental costs of warehouses and production halls in the Czech Republic have hit a new high of €8.5/sq m. Economic uncertainty, coupled with record construction, halted the dynamic growth in rents which lasted from the first half of 2020. In some locations there was even a slight decline of around 5 to 10%. However, this is where the good news ends from the point of view of the tenants'. According to results from the 4th quarter of 2022 firms are having to deal with a jump in rent indexation,.. more
We expect continuing pressure for repricing in 2023 more
The industrial real estate segment has not been perceived as a model of responsible development for many years. However, this is changing rapidly thanks to, among other things, the shift in company values, the economy and the key stakeholders themselves in industrial real estate: developers, tenants, investors and banks. European regulation aiming to reduce the production of greenhouse gases and the carbon footprint in general is also playing a major role in the market shift. All this is.. more
Continued rise in prime rents more
In the third quarter of 2022, the industrial market slowed down slightly due to still rising energy prices and other costs. Developers are also more cautious in development of new industrial parks as rising prices of rents are not always sufficient to make up for initial investment. At the beginning of 2023, we expect cooling of the market, foreign investors are already more cautious and in anticipation of how the situation on world markets will develop. An opportunity will be created for.. more
In the third quarter of 2022 the industrial market slowed down in comparison to previous record breaking year and a half after tenant's demand decreased. One fifth of all entreprises in the Czech Republic announced that they plan layoffs which is one of the ways they are trying to counter rising energy prices and other costs. Developers are also more cautious in development of new industrial parks as rising prices of rents are not always sufficient to make up for initial investment. Investment.. more
Yield decompression recorded in the past months. more
Rising energy costs to increase service charges next year. more
The second quarter of 2022 follows the good results of the first quarter, but there are the first signs of a future cooling of the market. Every month of increasing inflation is also reflected in the prices of hard-to-find construction materials. Combined with high-interest rates, we expect a slowdown in the construction of industrial parks at the end of the year. Other negative factors include rising fuel and energy prices and decreasing household consumption. All these factors will result in.. more
The second quarter of 2022 follows great results of Q1 and whole previous year, but we can trace first signs of potential cool down in the future. Inflation grows with each month which is reflected in prices of already hard to find construction materials. In combination with high interest rates we expect that development of industrial parks will slow down at the end of the year. Among other negative factors are growing price of fuel and energy and decreasing household consumption. All these.. more
A slowdown in investment activity after a strong start of 2022. more
Prime headline rents to be under upward pressure this year. more
The deepening differences between countries have led to trade wars and lately to a real war and caused chaos in many markets. Everything from food to precious metals to construction materials is becoming more expensive and harder to obtain. Export and import processes are becoming complicated. The European and Slovak industrial markets will pass a real test of resilience throughout the year 2022. In the first quarter, the Slovak industrial market showed good results and continued the.. more
Deepening differences between countries that lead to trade wars and most recently to true war, have caused a lot of chaos on many markets. Everything from food to precious metals to construction materials gets more and more expensive and harder to obtain. Export and import processeses get more difficult. True resilience of European and Czech industrial market will be tested throughout the year 2022. In Q1 the Czech industrial market performed great, continuing its last year's fantastic success... more
A strong start of the year with more than €900 million transacted. more
As vacancy rate dropped again, it reached a record value, which suggests problems for many companies that will need vacant industrial space in the first half of 2022. However we expect that rising speculative construction should partially help solve this issue in the second half of 2022. Strong demand from tenants is expected to continue throughout the year which underlines a need for swift approval and implementation of the new building act. Without a smoother approval process, it will not be.. more
Nearshoring of supply chains drives demand by tenants and causes a 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 a sufficient level to satisfy prime markets. The 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.. more
Increased industrial market activity influences all aspects of tenants decision making process. Factors such as record gross take-up in first half of the year, continuing rise of prices of construction materials, lengthening of handout process and completion of the building and extremely low vacancy of industrial premises for lease is shifting the market to more and more competitive environment among tenants. Swift and decisive decision making is becoming more and more crucial to successful.. more
Modern industrial premises in Q1/2021 in Prague and surrounding districts, were pushed to their limits to fulfill tenants needs. There is not enough of new development in the area, so the prices are skyrocketing around the capital. Rising sectors like e-commerce and fulfilment centres don’t have enough room to grow as fast as they could given more options. Municipalities divided approach to industrial development creates many imbalances between regions. Most recently between Central Bohemian.. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We are happy to introduce the latest edition of the report “Euro-cities”. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We are happy to introduce the latest edition of the report “Euro-cities”. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more
We bring you a professional view of the current industrial property market. more