INDUSTRIAL REAL ESTATE MARKET Q4/2024

”In Q4/2024, demand for premium industrial premises in Czechia strengthened thus contributing to the overall market performance for the year, which was roughly in line with 2020 levels. In 2025 we expect this positive trend to continue if interest rates will continue to drop, household consuption will increase throughout the year and if energy prices do not rise significantly. As gross wages in Poland have already outgrown ours in some regions, Czechia's future competitiveness will depend mainly on investments into infrastructure and rental prices. However one of the key factors will also be how new U. S. administration will approach trade relations with Europe. However a trade war could also spark another wave of nearshoring in Europe with a goal to avoid tarriffs.”

In Q4/2024 the total stock of "A" class industrial premises for lease reached 12,436,375 sq m. Including shell & core (S&C) premises, the total stock amounted to 12,937,752 sq m. A total of 119,484 sq m of new premises was delivered to the market, while 1,085,727 sq m remained under construction across Czechia. The largest new building delivered to the market was in CTPark Blučina, Hall BLU3 covering 54,571 sq m.

The vacancy rate for completed premises increased to 3.93% which represents 489,281 sq m. With S&C premises included, the vacancy rate also increased to 7.15% with total of 924,768 sq m available.

At the end of Q4, 501,377 sq m were in S&C condition, the vast majority of which were available to clients.

NET take-up reached 212,618 sq m while gross take-up 416,973 sq m. In the fourth quarter logistics and manufacturing companies had roughly the same share on NET take-up with logistics amounting for 82k sq m and manufacturing for 95k sq m. While clients from logistics sector signed slightly less area, they signed more transactions in total.