Industrial Research Forum Announces the Final Industrial Market Figures for Q3 2014
About Industrial Research Forum
The Industrial Research Forum was established by CBRE, Colliers, DTZ and JLL with the aim to provide clients with consistent, accurate and transparent data about the Czech Republic industrial real estate market. The members of the Industrial Research Forum share non-sensitive information and believe the establishment of the Industrial Research Forum will enhance transparency on the Czech Industrial market.
The Industrial Research Forum is pleased to announce the final Industrial Market figures for the third quarter of 2014.
As was already indicated in our previous press release on Q3 industrial stock, supply and rents, which was published on October 16th 2014, the industrial market in the Czech Republic is heading towards a record year in terms of supply levels. Moreover, based on the most recent data collected by the Industrial Research Forum, Q3 take-up numbers also confirm a strong year for leasing activity, which is reflected by the decreasing vacancy rate.
Based on the data gathered by the Industrial Research Forum, gross take-up (including renegotiations), amounted to almost 357,200 sq m in Q3 2014. This is a growth of 39% over Q2 2014 gross take-up and up 31% compared to the leasing activity recorded in the Czech Republic during the same period of last year.
Net take-up in Q3 2014 totalled 219,100 sq m, showing a robust increase of 72% compared to the previous quarter and almost 20% annually. Retail and wholesale companies drove the net demand for industrial space in the country accounting for almost 35% of the net take-up recorded in Q3, closely followed by manufacturers with 31%.
During the first three quarters of 2014, the overall leasing activity (gross take-up) has already reached 875,200 sq m (+13% y-o-y) which will most probably result in breaking last year’s take-up record of 1.176 million sq m. The Prague and Pilsen submarkets were the strongest regions in terms of the total gross take-up volume for the past three quarters of 2014.
The largest leasing transaction of Q3 2014 was a pre-lease signed by Červa for 29,500 sq m of industrial space in a brand new logistics park, west of Prague, Prologis Park Prague Airport, which is currently under construction.
The vacancy rate in the Czech Republic registered a quarterly decrease of 53 bps to 7.5% which is the lowest rate from the last eight quarters. In yearly terms, the vacancy dropped by 98 bps. In Prague, vacancy registered an even sharper decline, decreasing to 6.4% in Q3 2014 from 8.1% in Q2 2014. Annually, it declined by 356 bps. This is the lowest vacancy rate Prague has registered in the post-crisis period (since 2009).
In terms of volume there were just over 360,000 sqm of modern industrial premises available for immediate lease at the end of Q3/2014. The largest portion of these premises is still found in Prague, followed by the South Moravia region and Central Bohemia region.