Industial Take-Up fell significantly
120,000 sq.m. of modern warehouse space was leased in the forth quarter of 2008
Prague – 14th January – According to the last survey of CB Richard Ellis, industrial market’s development at the end of 2008 was strongly influenced by the global financial crisis. We witnessed a significant decrease in the industrial take-up by 33% q-o-q. The take-up in the Greater Prague submarket was again double the Pan Czech Republic take-up with a share of 68% of total take-up in Q4.
Despite the slowdown in take-up at the end of the year, annual take-up in 2008 slightly increased in comparison to 2007 to a record level of 724,000 sq m.
Filip Kozák - Head of Industrial Agency – comments: „We witnessed a continuous decrease in modern warehouse space completions in 2008. The total volume of completions in 2008 reached 646,000 sq m, which represented a decrease of 12% y-o-y. However, the market was not able to absorb the newly completed amount of warehouse space and as a result the vacancy rate grew to the level of 15.5%. There were large regional differences in terms of available warehouse space as well as rental levels, which stayed quite stable in the Q4 2008.”
In Q4 2008 we recorded a significant fall in the speculative construction, which at the end of 2008 represented only 30% of the total amount of space under construction. In comparison, at the beginning of 2008 there were 70% of new developments built on speculative basis. „We expect that next year speculative construction will all but disappear,“ said Kozák.