INDUSTRIAL REAL ESTATE MARKET Q1/2024

In Q1 2024, the total area of class "A" industrial space for lease reached 11,930,664 sqm (some older projects were reclassified to B standard). Including shell & core space, the total area reached 12,413,909 sqm.

106,635 sqm of new space was delivered to the market. There was 1,070,471 m2 under construction in all regions of the Czech Republic. Construction activity remains high and is likely to remain high in the next two quarters.

The vacancy rate increased again to 5.36%, representing 664,892 sqm including shell and core space. Excluding these, the vacancy rate also increased to 2.65%, with 316,604 sqm available in completed space.

A total of 483,245 sqm of modern class "A" space was in shell & core condition at the end of Q1. The majority of this space is available to clients.

Net and gross demand reached a ten-year low after returning to normal in 4Q/23. Net demand was only 91,530 sqm and gross demand was 148,348 sqm. The last two of the three quarters (Q4/23 being the exception) have not achieved the same performance as before the pandemic. The second and third quarters of 2024 will provide further information on future market dynamics and how demand will evolve.