"High developer activity and record construction is clearly a positive sign. Not only does it affect the amount of rent for industrial and logistics properties, where we are already seeing a slight year-on-year decrease, but also the vacancy rate, which represents a year-on-year increase. The market's confidence in new construction creates ideal conditions for the arrival of new tenants, as well as for the possible growth of established companies," says Jana Čožíková, associate industrial agency at Savills. He adds that this confirms the old rule "supply creates demand" and the quality of tenants across the manufacturing, retail and logistics sectors is also good news.

Most industrial areas

In June, the most industrial areas were built in the Karlovy Vary Region, almost 336,000 square meters. The reason is the construction of a new logistics center for H&M with a size of 233,700 square meters and also the construction of a distribution center for Goodyear (60,600 square meters), which are growing in Panattoni Park Cheb. The rental agreement signed by H&M is also the largest rental transaction in the entire history of the industrial hall rental market in the Czech Republic.

TOP 5 largest pre-leases in industrial premises since 2008 in the Czech Republic; source: Savills

Construction of industrial premises in the regions

Pilsen region has almost 207,000 square meters under construction. In this region, for example, Arete is building a 31,000 square meter hall for Duvenbeck in Rokycany. In the Plzeň region, there was also a significant share of speculative construction in June, and approximately half of all areas under construction with an area of 102,000 square meters were vacant.

187,000 square meters are under construction in the South Moravian Region. The largest production hall currently being built in this region is the hall in CTPark Blučina, custom-built for Inventec (52,600 square meters).

165,000 square meters of leased industrial space is under construction in Ústík. Premises are being built here, for example, for the company Fielmann in Garbe Park Chomutov (29,600 square meters) or for Fiege in CTPark Žatec (18,500 square meters). In June, 72,000 square meters were available as part of ongoing construction.

Prague and its immediate surroundings had 137,000 square meters under construction in the middle of this year, and almost all of this construction was speculative. Most of the premises under construction, namely 111,000 square meters, were still available and offered for rent. The largest buildings in this sub-market are being built speculatively by CTP in Kozomín near the D8 highway.

Historically, and this is also true at present, the least amount of warehouse and production space intended for rent was built in Zlínsk, Vysočín, South Bohemia, Pardubice and Hradec Králové.