CBRE: Prologis disposes of its logistics park in Ostrava
CBRE, which advised on the transaction is the market leading in investment advisory services team in the industrial sector
CBRE, the world leader in commercial real estate services, represented Prologis in the sale of its logistics park in Ostrava, which was acquired by CBRE Global Investors. The logistics park offers 65,910 m2 of modern warehouse and office space. The location of the park on the D1 highway is strategic for Czech companies, as it allows central management of the Central European market. The Park is currently fully occupied by five tenants: Geis, AT Computers, B2B Partners, Booklogistics and Pyro Moravia. In the last 12 months, approximately EUR 1.05 billion has been invested in industrial real estate in the Czech Republic, of which CBRE advised on almost 94% of these transactions.
Investments in the industrial sector are very attractive for investors, thanks to the record high demand among tenants and falling vacancy rates. I am pleased that the CBRE investment team has been involved in three major transactions over the past six months: P3 Portfolio, Karlovarská Business Park and the Logistics Park in Ostrava, helping us to the number 1 position in the market.
The Moravian-Silesian Region is thriving in the industrial sector. Since the end of 2015, this region has seen one of the largest declines in vacancy rates in the Czech Republic, from 10% to 2%. At present, the occupancy rate of warehouse and production premises in the Moravian-Silesian Region is 97,25%, which is above the national average (95,3%). Hyundai (5,700 m2) and Gebruder Weiss (3,500 m2) were the largest leases in the first quarter. Unemployment in the Moravian-Silesian Region is fluctuating around 7%, which is well above the national average. There are 61,000 job seekers in the region, which is the highest in the Czech Republic and twice as much as in Prague. Therefore, the Moravian-Silesian Region provides an attractive labour force for occupiers.
At present, industrial demand is driven primarily by manufacturing and logistics companies. There is growth in production and logistic operations, which are associated with increased demand for production and storage facilities. Industrial real estate is a great investment opportunity, not only for these reasons. The main demand drivers in this sector include the automotive, logistics and
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.