CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Industrial space in Czechia: record-breaking occupancy and pipeline

13/04/2022

• There is currently over 46 million sq m of industrial space in the CEE region, of which one-fifth is in the Czech Republic and the largest part – more than a half – in Poland
• There is more than 900 sq m of industrial space per thousand inhabitants in our country
• Just 1.6% of the space in Czechia is currently vacant
• A record-breaking 1,112,000 sq m is currently under development in the Czech Republic – the highest figure in history
• Demand on the part of logistics, distribution and e-commerce companies is growing


Cushman & Wakefield, a leading global real estate services firm, has analysed the trends in the industrial property sector in five Central European countries (Czech Republic, Hungary, Poland, Romania and Slovakia) in 2021, and the principal findings are as follows.

Modern logistic industrial space in the region totalled more than 46 million square metres at the end of 2021, which is an increase of more than ten per cent over 2020. The largest portion of the stock is still located in Poland (52 per cent) and the Czech Republic accounts for more than one-fifth (21 per cent) of the area. Romania comes third (12 per cent), followed by Hungary (9 per cent) and Slovakia (7 per cent).

If we restate the figures in relation to the population, the Czech Republic leads by a large margin with 902 square metres per thousand inhabitants, an approximately 6% increase over the preceding year. Poland comes second with 625 square metres per thousand inhabitants.

Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield: “Poland has recorded the greatest year-on-year increment in industrial space last year; approval procedures that are markedly faster than in the Czech Republic help the pace of development in the country. In our country, approval procedures have traditionally been very slow and, as such, unable to flexibly respond to the leaps in demand in certain segments. In addition, there are fewer locations suitable for new development in Czechia than in Poland, which has a greater area and mostly flat terrain.”

Demand is outpacing development

The current industrial stock in Czechia barely suffices to meet the demand. Demand has been growing each year – just last year, it increased 61 per cent over the preceding year, the highest figure in the entire region. Thus, it is not surprising that the vacancy rate of such schemes is currently a mere 1.6 per cent, and in Prague as little as 0.7 per cent, an all-time low.

Of course, demand spurs new development – the stock currently under construction in Czechia amounts to a record-breaking 1,112,000 square metres, the most in history and almost three times as much as at the end of 2020. The other reviewed countries are also posting record-breaking figures for new development.

Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield: “Development continues, though the pace may slow down somewhat in the upcoming quarters due to the current rise in the prices of construction material. New development may also suffer as a consequence of the situation in Ukraine, in terms of both supply and demand.”

 

Demand among logistic and distribution companies is growing

The growth in demand for industrial space is driven primarily by companies operating in logistics, distribution and e-commerce.

Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield: “Companies are compelled to respond to the current shift of a part of retail demand from traditional sales channels to the Internet by securing adequate storage capacity. The development of e-commerce currently principally influences the form of retail sales, and the sales model involving brick-and-mortar shops combined with deliveries directly from central storage is likely to be the most preferred option in the future.”

 

 

Rents in Czechia grew rapidly last year

Last year, rents in the Czech Republic grew due to a shortage of vacant space following a long period of stability. The prime rent (the highest achievable rent for an area of 5,000 sq m in a prime location) used to range between EUR 4 to 4.30 per square metre for about 10 years, only to increase to as much as EUR 5.60 in Prague’s vicinity at the end of last year. This is the highest rate in the region – prime rent in Hungary was EUR 4.65 last year, and remained at about four euros in the other three countries of the region.

As a result, industrial properties enjoy unprecedented interest among investors across the region. The share of investment in the sector in Central and Eastern Europe reached its all-time high at 44% last year, outperforming office space as the most attractive option for the first time. The overall investment in storage facilities and halls in the region was EUR 4.2 trillion in 2021, 23% more than in 2020. The greatest amount of investment (70%) was made in Poland, with just 15% focusing on the Czech Republic.

Michal Soták, Head of the Capital Markets team, Cushman & Wakefield: “The development of the Czech real estate market still depends on the quantity of stock available for sale, and that is still very low in comparison with Poland, for example, yet also with Western European countries in general. Industrial properties are clearly the most popular with investors, but a shortage of investment opportunities continues to restrict their activity.”

The prices of industrial properties expressed in terms of yield continue growing in all countries of the region. In the Czech Republic, the prices grew by as much as 20% and the yield from premium halls dropped below four per cent for the first time in history.

Major players cover the majority of the market

The CEE market is quite consolidated with just a few major companies covering a considerable part of it. The lion’s share in the total industrial space in the five aforementioned countries belongs to CTP (13%), Prologis (10%), Panattoni (8%), P3 Logistic Parks (7%) and SEGRO (4%), totalling approximately 42% of the entire market.

Last year, Panattoni was responsible for the greatest share of development in the region – the international company completed almost two million square metres of new logistic space. CTP, a developer with Czech roots was next with more than 600,000 sq m opened (even though the group started major activity in Poland, the biggest country of the region, only recently).

Detailed information on the European industrial market is available at http://www.eu-industrial.com/.

Media Contact

Michaela Sedlbauerov
Michaela Šedlbauerová

Head of Marketing Czech Republic • Prague

Related News

shop, store
Retail market activity grows, especially in fashion, F&B, and health & beauty sector

In 2023, rental activity in the Czech and European retail markets significantly increased year-over-year, with a rise in the number of transactions and the volume of leased space across sectors and countries.

18/06/2024

retail park, shopping
Cushman & Wakefield and CENTERSCAPE: 20 years of cooperation

Cushman & Wakefield, a leading real estate consultancy, has been cooperating with CENTERSCAPE, an investment company that owns 20 retail projects in the Czech Republic, for 20 years.

10/06/2024

Industrail space, warehouse
Record demand for industrial space

Interest in industrial and logistics space in the Czech Republic was at a record high in 2023, up 50% from 2019, which means one million sq m in demand.

29/05/2024

Shopping centre, city, street
Cushman & Wakefield manages SC Opatovská

The real estate services firm Cushman & Wakefield has taken over the management of the OC Opatovská shopping centre in Prague 4, owned by Conseq realitní fond, a significant player on the Czech capital market. Cushman & Wakefield manages OC Opatovská

22/05/2024

Square, buidlings, hotel, properties,water fountain
Prague’s Pařížská Street: Zero vacancy, new projects to saturate luxury retailers’ demand

Luxury retailer activity remains high and focussed on EMEA’s key luxury streets, Prague’s city centre being no exception.

20/05/2024

studio, conversation, people, camera
Prague as a premium destination

Prague is no longer just about the city centre, but also about public space and gastronomy.

17/04/2024

Six Feet Office
Six Feet Office

The Six Feet Office concept offers rules and aids to enable and facilitate the observance of the safe six-feet distance for increased employee safety.

23/04/2020

Related Insights

European Luxury REtail
Research

European Luxury Retail

Explore the dynamics of the European luxury retail real estate market.
Sally Bruer • 15/05/2024
Czech Republic, Prague, Old Town Square, High Street
MarketBeat

Czech Republic MarketBeat

Cushman & Wakefield MarketBeat reports analyse quarterly Czech Republic commercial property activity across office, retail, industrial and hotel real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Kamila Breen • 30/04/2024
Cover, woman in a meeting room
Insights • Economy

5-minute Real Estate Market Snapshot

Explore our 5-minute Real Estate Market Snapshot, a video overview of the commercial real estate market developments presenting the key trends in real estate investment, logistics, office and retail sectors.

25/03/2024
Office Fit Out Cost Guide - Web card
Research • Workplace

EMEA Office Fit Out Cost Guide - Czech Republic

Discover the essential data for planning and budgeting your office transformation in the Czech Republic with our Office Fit Out Cost Guide 2024. Begin optimizing your workspace in key cities like Prague today!
Thomas Moore • 20/03/2024
office buildings
Insights

Complete Asset Optimisation Guide

Discover expert strategies for optimising logistics, retail, and office real estate assets. Gain insights to maximise returns and improve performance.
Andie Penman • 29/02/2024
main streets across the world 2023
Research

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.
21/11/2023
Women Hotel City
Insights • Investment / Capital Markets

The Hotel Investment Scene in CEE

Welcome to our fourth edition of the joint Cushman & Wakefield–CMS report on the Hotel Investment scene in CEE: Getting Real about ESG in Hotel Real Estate
Bořivoj Vokřínek • 25/10/2023
office, statistics, laptop
MarketBeat • Economy

CEE MarketBeats

Cushman & Wakefield MarketBeat reports analyse quarterly commercial real estate activity in the CEE region (Czech Republic, Hungary, Poland, Romania, and Slovakia) across office, retail, industrial and hospitality real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Marie Baláčová • 13/09/2023
Prague, Czech Republic
Research • Economy

Czech Real Estate Market View

A regular update on the commercial real estate market in Czech Republic.
Marie Baláčová • 27/04/2023

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies
MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
Save settings