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Warehouse Market News

Developers are curbing speculative construction due to rising costs

Under the influence of rising building material prices, lack of capacity of supply companies and a sharp increase in energy costs, many industrial developers have decided to postpone or slow down the speculative construction of industrial buildings. Due to the continuing demand, this will further open up space for rent growth, which already in the first quarter of this year, not only in attractive locations around Prague and Brno, exceeded an average of 5 euros per square meter per month. This is reported by the quarterly analysis of the real estate consulting company 108 Agency.

Industrial areas in the Czech Republic are characterized by record occupancy and intensive construction

The area of modern industrial space in the five countries of the Central and Eastern European (CEE) region reached more than 46 million square meters at the end of 2021, which is an increase of more than ten percent compared to 2020. The largest part of these spaces is still located in Poland (52 percent). , in the Czech Republic is over a fifth (21 percent) of this area. It is followed by Romania (12 percent), Hungary (9 percent) and Slovakia (7 percent). Developments in the industrial real estate market in these countries are analyzed by the real estate consulting company Cushman & Wakefield.

WeDo starts superhub operation near Ostředek in Central Bohemia. The deployed shoe sorter has a capacity of up to 100,000 packages per shift

This week, the logistics operator WeDo launched the operation of the super hub in Ostředek near D1. With an investment of over half a billion crowns, it is one of the biggest logistics innovations on the Czech market this year. Thanks to the opening of the super hub, the capacity of Wedo will increase significantly, which will be ready for further expansion in the coming years.

Rhenus opened the multipurpose hall

The new Rhenus Logistics transhipment depot in Chrášťany near Prague serves as a warehouse as well as a cross-dock for the B2B and B2C segments. The ideal location near the airport and the main communication routes in the immediate vicinity of Prague, a well-thought-out project and completed technological preparation for electromobility characterize a modern distribution center built by the CTP developer Rhenus.

GARBE starts a speculative construction of an industrial hall in Chomutov on a brownfield

Logistics and industrial real estate specialist Garbe Industrial Real Estate has started speculative construction with an area of 30,000 square meters in Garbe Park Chomutov. The new building will be built on a brownfield site in the former construction site, where the company completed demolition last year, revitalized it and prepared it for construction. The industrial hall will be completed by the end of this year.

Large transactions have returned

Large transactions returned to the Czech real estate market. The first quarter of this year was the strongest in the commercial real estate investment market in the last few years. The market thus returned to pre-pandemic levels. The confidence of domestic investors is also constantly growing. However, the impact of the war in Ukraine and the expected stagflation of the Czech economy remain largely unknown.

Strong progress toward sustainability goals – VGP publishes corporate responsibility report for 2021

VGP NV (‘VGP’ or ‘the Group’), a European provider of high-quality logistics and semi-industrial real estate, has published its Corporate Responsibility Report 2021. The report details VGP’s achievements and progress against its previously set targets and underscores the company’s commitment to strengthening sustainability efforts across its day-to-day business. VGP’s key objective is to align its portfolios’ performance with the goals of the Paris Agreement and is working with clients to help them realize their decarbonization strategies — efforts that are intended to drive near-term actions that will help set the world on a path to achieving net-zero carbon emissions by 2050.

The industrial market is overheated, there is interest in the regions

Despite a cursory glance at European data, it seems that the Czech Republic is the premier in the region of Central and Eastern Europe in the number of m2 of industrial real estate per person, the current situation in the lack of new warehouse and production space is critical in our country. Prices around Prague and Brno for rent are skyrocketing (up to 50% year on year) and new construction is in jeopardy. Delivery times for new turnkey industrial buildings are being extended due to Russian aggression in Ukraine, and what used to take 7 months to build is now being delivered in 9-12 months. Builders often do not hold quotations for more than a week, so companies have to make quick decisions and approves, which can be a problem, especially for multinational corporations. This was stated by Prochazka & Partners.

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