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Speculative investment on the rise

Eurobuild CEE 11 April 2018
CZECH REPUBLIC The Industrial Research forum has announced its preliminary Industrial Market findings for Q1 2018.

In Q1 2018, industrial space totalling 181,900 sqm was completed within13 industrial parks across the Czech Republic. Major completions include a distribution warehouse for Makroat in CTPark Prague North totalling 53,000 sqm, an extension of an existing building (31,900 sqm) in Panattoni Park Cheb delivered for DHL and a building of 22,200 sqm built for production company Petainer in CTPark Aš. Speculative construction accounted only for 2 pct of all new developments completed in the first quarter of 2018. The total stock of modern industrial storage space increased to 7.18 mln sqm.
There was 505,100 sqm of storage and industrial space under construction at the end of Q1 2018. Approximately 39 pct of that space is located in the greater Prague area. In Q1 2018 development work started on 31 pct (i.e. 155,700 sqm) of the total space that is currently under construction across the country. Around 63 pct of the industrial construction pipeline is due for delivery in Q2 2018. The share of speculative floor space under construction has currently increased to 45 pct.

Monthly prime headline rents remained stable during Q12018 and currently stand at EUR 4.50 per sqm. The rents for mezzanine office space stand at between EUR 8.50-9.00 per sqm. Monthly service charges typically reach around EUR 0.50- 0.65 per sqm. The Industrial Research Forum is a collaboration of CBRE, Colliers, Cushman & Wakefield, and JLL.


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