INDUSTRIAL MARKET OVERVIEW - 2021 | CZECH REPUBLIC - WIKIBANKS
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2021 | Czech Republic Industrial Market Overview
2
Macroeconomic overview
Q1 |Czech Republic
Research & Forecast Report | Colliers International
The Czech Republic remained consumer spending is also
in a state of emergency during expected to lead the recovery,
the entire first quarter of 2021. thanks to the accumulated
This condition was ended in savings amongst the
mid-April and lasted a total of population.
189 days. Despite some
progress of distributing the What could be surprising,
vaccine to the population, it is despite reported closures of
still quite slow in comparison hundreds of restaurants and
with other countries in Europe. even several retail brands and
As the count of new confirmed chains, is that the
cases of COVID decreases, the unemployment rate has
whole country looks forward to remained at similar levels
loosening the measures. There recorded last year, reaching
is however a long road back to 4.2% at the end of March 2021.
normality and the government, This represents approximately
both current and future (which 307,000 jobless individuals in
will be elected in autumn), the country. This rate is
must avoid the mistakes made expected to remain for some
last year. time during 2021 and even
decrease further forward in
As we could expect, the 2022, once the economy can
prolonged state of emergency operate without limitations.
affected the forecasts for GDP.
In general, we are still One big question mark still
expecting a rebound in H2 hangs over inflation. There
2021 from the current were several scenarios warning
slowdown and through 2022. about the inevitability of
According to Oxford increasing consumer prices
Economics, the forecasted however, many economists
growth for this year is 3.3%. and institutions are now
Industry and exports are still forecasting a much more
the main economic engines, conservative outlook for Czech
even with several bottlenecks Republic, ranging from 2.0% to
in supply chains that can limit 2.5% in 2021.
their outputs. By the time
shops re-open, strong
Gross domestic product 8,0
(%)
6,0
4,0
2,0
0,0
-2,0
-4,0
-6,0
-8,0
2018
2021
2011
2012
2013
2014
2015
2016
2017
2019
2020
2022
2023
2024
Czech Republic Czech Republic predictions
Eurozone Eurozone predictions
Sources: Colliers International, Oxford Economics3
Research & Forecast Report | Colliers International
Q1 |Czech Republic
Czech industrial market
Top 3 Transactions Tenant Property Size (sqm) Transaction
of Q1 2021
Panattoni Park
Tchibo 73,100 Renegotiation
Cheb
Wistron
CTPark Brno 65,300 Renegotiation
InfoComm
Damco Czech P3 Hradec
Sources: Industrial Research 41,600 Renegotiation
Forum, Colliers International Republic Králové
Supply and Vacancy reached 329,100 sq m.
Availability of larger space
With 68,000 sq m of newly remains quite limited, with only
completed warehouse space in 8 properties offering existing
Q1 2021, the total stock in the space in excess of 10,000 sq m.
Czech Republic now stands at Combined with the low
9.17 million sq m. The newly average vacancy rate, it creates
completed space comprises 5 an ideal market environment
new buildings across the for build-to-suit developments.
country, with 41% of the space Thanks to the limited supply of
being delivered to the Pilsen land and lengthy permitting
region. The second highest processes, landlords will
supply of space was in the remain in a strong negotiating
Moravia-Silesia region, position.
receiving 37% of completed
space, followed by the Greater Demand
Prague (19%) and Liberec
regions (2%). Gross take-up in Q1 2021
reached a new all-time high of
By the end of Q1 2021, vacancy 765,600 sq m, registering a
stood at just 3.6%, which is 61 44% increase on the previous
bps lower than in Q4 2021. The quarter, and an incredible
total volume of available space 147% increase YoY.4 Q1 |Czech Republic
Research & Forecast Report | Colliers International
Industrial stock and Occupied Stock Vacant Stock
vacancy in regions
(sq m thousands)
Greater Prague
Plzeň
South Moravia
Moravia-Silesia
Central Bohemia
Ústí nad Labem
Rest of the regions
500
0
2 000
1 000
1 500
2 500
3 000
3 500
Sources: Industrial Research
Forum, Colliers International
Annual supply
Q1 Q2 Q3 Q4 f Q2 f Q3 f Q4
(sq m thousands)
800
700
600
500
400
300
200
100
-
Sources: Industrial Research 2016 2017 2018 2019 2020 2021
Forum, Colliers International
Annual take-up Net Take-Up Renegotiations
(sq m thousands)
1 750
1 500
1 250
1 000
750
500
250
0
Sources: Industrial Research 2016 2017 2018 2019 2020 2021 Q1
Forum, Colliers International5
Key market figures
Research & Forecast Report | Colliers International
Q1 |Czech Republic
Stock (sq m) Vacancy Rate
9.17 mln 3.6%
Q1 Gross Demand (sq m) Prime Rent
765,600 €4.50 - 4.85
Q1 Supply (sq m) Under Construction (sq m)
68,500 557,500
This record take-up is a result of €4.00 - €4.35 per sq m per
of realized demand that was month. The previously
pent-up, in previous quarters, common incentives of one
by the pandemic. This growth month rent free per year of
in demand confirms a robust lease is no longer the standard
and growing industrial & and developers now provide
logistics market. Net take-up incentives based on location,
reached 299,400 sq m, which is lease size, lease length and
a 10% decrease QoQ and a most importantly, the tenant
185% increase YoY. The share profile and covenant.
of renegotiations on total gross
take-up for Q1 2021 was 61% Outlook
and we expect this share to
become the norm as the Approximately 557,500 sq m of
growth of the market is not as warehouse space was under
rapid as in previous years. The construction at the end of Q1
trends in the property market 2021. The level of pre-leased
together with the space under construction is
unemployment rate of around 78%, which is in line with our
4.2%, create a market expectations. Due to the
environment where companies continued situation with low
prefer to stay in current vacancy, we do not expect this
premises and renegotiate, trend to change as developers
rather than facing the issues of are less willing and under less
moving to another location and pressure to speculate with new
hiring new staff. developments. In Q2 2021, we
expect 293,400 sq m of space
to be delivered to the market, a
Rents continuous increase in size of
new space entering the market.
Prime industrial rents in This trend proves that the
Prague and Brno stand in the Czech Republic is still one of
range of €4.50 - €4.85 per sq the most sought-after
m, per month. Other highly countries within Europe for the
sought-after regions such as development of new industrial
Ostrava, Plzeň and Ústí nad and logistics properties.
Labem have rents in the rangeFor more information
Industrial Agency Research & Forecasting
Harry Bannatyne Josef Stanko
+420 602 490 217 +420 728 175 024
harry.bannatyne@colliers.com josef.stanko@colliers.com
Managing Partner
Tewfik Sabongui
+420 777 150 669
tewfik.sabongui@colliers.com
This report gives information based primarily on Colliers International data, which
may be helpful in anticipating trends in the property sector. However, no warranty is Na Příkopě 859/22
Slovanský dům B/C
given as to the accuracy of, and no liability for negligence is accepted in relation to,
the forecasts, figures or conclusions contained in this report and they must not be
relied on for investment or any other purposes. This report does not constitute and
must not be treated as investment or valuation advice or an offer to buy or sell 110 00 Praha 1
property. ( May 2021 ) © 2021 Colliers International.
Colliers International is the licensed trading name of Colliers International Property
Advisers UK LLP which is a limited liability partnership registered in England and
Wales with registered number OC385143. Our registered office is at 50 George
Street, London W1U 7GA.You can also read
