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Rent contracts for industrial premises are being extended. This is due to strong demand

In the commercial real estate market, there is currently a shortage of industrial and logistics premises, as well as land suitable for their construction. This is mainly due to growing demand, and the fact that local governments aren’t motivated by tax benefits to construct them. The situation is most evident in the vicinity of large cities, and also affects the growth of rent levels. Moreover, it has also caused a new trend in the form of the extension of rent contracts. The first new projects of over 20,000 sq m can only be expected in the second half of 2022.

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Industrial real estate rent prices to increase in some locations by up to 10 % in 2021

The fourth quarter of 2020 closed a year full of changes and upcoming trends, also reflected within industrial real estate. Despite the pandemic, the industrial segment proved stable, and there was a significant acceleration in the development of e-commerce, and specifically the digitalisation of the entire retail sector. There remains a high demand for premises on the market from investors and clients, and this interest puts pressure on prices, which will increase significantly at premium locations in 2021.

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Logistics service boom

Interest in outsourcing logistics services is growing in the industrial real estate market. Primarily due to flexibility, customers no longer have to make a long-term commitment, and they can adapt the scope of the storage and related services to their current needs. In today’s dynamic times, this is proving to be an interesting competitive advantage. As a response to this trend, 108 AGENCY established a new division which is exclusively responsible for the brokering of logistics services.

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The Czech industrial real estate market in Q3/2020: the 9 million sq m mark was exceeded in modern industrial premises during the pandemic

The pandemic, and the measures relating to it, had only a limited effect on the industrial real estate rental market, in particular with regard to the importance of the logistics sector, supply chains and production for the end consumer. In the third quarter, developers and tenants were catching up with the impact of the lockdown, and the situation in the fourth quarter will tell us more about business models in the coming year.

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108 AGENCY participated in a unique survey which reveals both trends and problems in Czech logistics and warehousing

The survey was realised by the SKLAD (Association of Competent Logistics Providers and Suppliers) association in collaboration with the Ipsos research agency. The result is an extensive study which maps the trends shaping the logistics market in the Czech Republic. 123 managers operating in retail and wholesale company logistics, e-commerce, the automotive industry and manufacturing also took part in its creation.

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Vlčí hrdlo Business Park in Bratislava changes its owner and 108 AGENCY was there

108 AGENCY managed to mediate the sale of Business Park Vlčie hrdlo – a site suitable for redevelopment together with two office buildings in Bratislava. The Czech developer CONTERA has purchased it from the Natland investment group, which had managed the former brownfield with an area of 33,420 sq m since 2020. It wants to continue in modernization and revitalization of the premises and create the so-called small business units concept there.

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Logistics firms suffer from bad infrastructure, road closures, and a lack of people

A survey from 108 AGENCY has shown that Czech logistics and manufacturing companies consider poor quality infrastructure and frequent road closures to be the most pressing problems impeding their business activities today. They also suffer from a lack of employees and rising labor costs.

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New Construction at the Eastgate Park Prague Area Has Just Started

The limited possibility of new constructions has been one of the main problems for the industrial property market development for the last years. This problem multiplies dramatically with regard to urban industrial zones. The solution lies in the revitalization of brownfield areas and the filling out free spaces near existing buildings. A palmary example is the area of the Eastgate Park Prague and the construction of a new hall of approximately 5,000 square meters within it.

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EMERGE, LEADING CZECH AUTOMOTIVE SUPPLIER, EXPANDS TO MLADÁ BOLESLAV

A Czech company with more than 25 years of tradition will start operations in CTPark Mladá Boleslav. This site will complement five existing plants across Czechia. The automotive segment continues to enjoy excellent condition, benefiting not only the automakers themselves but also their subcontractors.

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