In the Czech Republic, developer-led modern industrial stock grew by 124,800 sq m (down by 30% q-o-q) causing the total industrial stock to reach 8.09 million sq m, with Prague currently housing 3.02 million sq m of the total according to latest report compiled by Savills, the leading global real estate advisor.

The vacancy rate in the Czech Republic increased by 25 basis points (bps) to 4.0%, representing 326,400 sq m of space available for immediate lease. This was mainly the result of speculative completions delivered to the market in Q2 2019.

Total leasing activity in the Czech Republic during Q2 amounted to 344,300 sq m, which was 11% below the results of the previous quarter but a 14% improvement year-on-year. Net take-up reached 240,300 sq m, showing a 16% increase compared to the Q1 results and also the same period last year.

Headline rents remain unchanged, starting at around €3.65 per sq m a month in tertiary locations and climbing to around €4.90 in Prague. Headline rents for smaller units (around 1,000 sq m or less are in the range of €5.10 - €5.60 pre sq m a month across the country. 

Jaroslav Kaizr, head of the industrial team at Savills Czech Republic, says: “Industrial market in the Czech Republic has matured in Q2 2019 when surpassing the 8 million sq m stock figure. The depth of the market on the investment as well as on the take-up side is still encouraging, although negative signs are starting to come from outside.”