czech pavilion at 2010 expo - MZV ÄŒR

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SERVICES
Industrial Real Estate Market Stabilised Between Supply and Demand
The industrial real estate market
experienced a robust development
in the past years and has reached
the line between a developing
market and a saturated one. The
massive speculative construction
of the past years, when developers
were building warehouses without
a secured lease, was greatly slowed
down by the global economic crisis
in 2009. Paradoxically, this situation
has brought market stabilisation
in the supply-demand relation
in this country.
sq.m/1000 inhabitants
350
300
250
200
150
100
50
0
The fall in the demand for industrial properties
rental was observed in the Czech
Republic, especially in the first half of 2009,
when the volume of concluded transactions
declined to 150 000 sq.m, while in
the second half the interest increased and
381 000 sq.m were leased. This is a 50%
drop compared to 2008. The number of
industrial properties under construction
SHARE OF INDUSTRIAL AREAS PER 1000 INHABITANTS
IN CENTRAL AND EASTERN EUROPE
324
186
159 154
Czech Republic Slovakia Poland Hungary
Source: CB Richard Ellis
also went down significantly. At the end
of 2009, only 63 000 sq.m were under construction,
while the three-year quarterly
average of space under construction is
150 000 sq.m.
� MASSIVE CONSTRUCTION DID
NOT CORRESPOND TO DEMAND
Unoccupied space rate has risen over the
long term in the past years, which was
due to massive building that contrasted
with users‘ demand for industrial real
estate. At the end of the year, the Czech
Republic had approximately 600 000
sq.m of vacant A class industrial real estate,
which means heated buildings with
full thermal insulation, and usable height
of 10 metres for logistics or 7 metres for
manufacturing. The halls must have dustproof
flooring with loading capacity of at
least 5 t/sq.m. Another parameter is light
shafts, the presence of loading bridges
with balancing ramps, and the possibility
to build in offices. The most affected
areas in terms of unoccupied space are
the regions of Plzeň and Ostrava, where
the vacancy rate is up to 25%. In Prague,
too, there are some 250 000 sq.m of unoccupied
space, which is about 18%. However,
it should be noted that Prague and
its surroundings still account for 50% of
the industrial real estate market, in both
supply and demand. Given the absolute
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