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Industrial Research Forum Announces Preliminary Industrial Market Figures for Q4 2016

The Industrial Research Forum was established in 2010 with its aim to provide clients with consistent, accurate and transparent data about the Czech Republic industrial real estate market. The members of the Industrial Research Forum, CBRE, Colliers, Cushman & Wakefield and JLL, share non-sensitive information and believe the establishment of the Industrial Research Forum will enhance transparency on the Czech industrial market.

The Industrial Research forum is pleased to announce the preliminary Industrial Market figures for Q4 2016. 

New Supply in Q4 2016

In Q4 2016, industrial space totalling 178,600 sq m was completed within 12 industrial parks across the Czech Republic. Major completions included the first hall at Panattoni Park Cheb for Tchibo (39,000 sq m), speculative construction of building at Panattoni Pilsen Park West (30,000 sq m) and a distributional warehouse at Prologis Park – Jirny (20,500 sq m) for Mall.cz. Speculative construction accounted for 38% of all construction completed in the final quarter of 2016.

In 2016, new supply totalled 497,000 sq m which represents year-to-year decrease by 12%. The total stock of modern industrial storage space increased to 6.26 million sq m.

Projects under construction

There was 426,600 sq m of storage and industrial space under construction at the end of Q4 2016. Almost one third of that space is located in the Greater Prague. During Q4 2016 development works started on 12% (i.e. 49,700 sq m) of the total space that is currently under construction across the country. 45% of the industrial construction pipeline is due for delivery in the Q1 2017. The share of speculative development under construction increased to 40%.

Rent

Prime headline rents achieved in the Czech Republic remained stable during Q4 2016 and currently stand at
4.25 EUR/sq m/month. The rents for mezzanine office space stand at between 8.00-9.00 EUR/sq m/month. Service charges typically reach around 0.50-0.65 EUR/sq m/month.

Further market data including take-up and vacancy will be published by the Industrial Research Forum in two weeks’ time.

For further information please contact any member of the Industrial Research Forum:

CBRE:

Petra Lávičková

+420 221 711 085 

Colliers:

Lenka Oleksiaková

+420 226 537 618

Cushman & Wakefield

Lenka Minářová

+420 725 770 885

JLL

Markéta Miková

+420 724 879 065