Publication

Market in Minutes | Czech Republic Industrial Market Q2 2024

INDUSTRIAL MARKET HIGHLIGHTS

  • In the first half of the year, the total modern industrial stock in the Czech Republic increased by 332,700 sq m, which is 13% less than thenew supply recorded in H1 2023. The current existing stock standsat 12.45 million sq m, with 389,200 sq m of industrial space andassociated offices vacant as of June 2024.
  • In Q2 2024, the vacancy rate exceeded 3% for the first time since 2020.The construction pipeline remains at a record high, with1.54 million sq m under construction or in shell & core finish, of which 51% is still available for lease.
  • Total leasing activity from the beginning of the year reached 663,940 sq m, marking a 30% y-o-y decline, a 37% drop compared tothe 5-year H1 average, and falling 24% short of the H1 average over thepast 10 years. Renewals of older lease commitments accounted for 31% of the gross take-up in H1 2024.
  • Net demand for H1 2024 totalled 459,100 sq m, a decrease of 12%y-o-y, 23% below the 5-year H1 average, and 12% lower than the 10-year H1 average. A total of 69 deals were signed in H1 2024, just 5 fewer than in H1 2023 but down by more than half from the peak in H1 2022.

 

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