Appetite for Czech spec industrial development grows
In the first quarter of 2016, 84,300 sqm of new industrial space hit the Czech property market across seven industrial parks. Major completions include a 33,500 sqm built-to-suit (BTS) project in Prologis Park Prague Jirny for Globus, a 10,600 sqm BTS in CTPark Kvasiny for an undisclosed manufacturing company and a 10,500 sqm BTS for Megatech Industries Hlinsko in CTPark Modřice.
Speculative construction accounted for just 6 percent of the total completed in the first quarter of 2016, according to the latest report by Industrial Research Forum. In all, 255,600 sqm of space was under construction at the end of Q1 2016, the majority of which is scattered across the Greater Prague area. Eight percent of it commenced construction in Q1 2016, while 82 percent of the stock is scheduled for completion in Q2 2016. The share of spec development has been on the rise, reaching 41 percent. Prime headline rents remained flat in the Czech market during the first quarter and currently stand at €4.25/sqm/month. Rents at mezzanine office space range between €8-9/sqm/month, while service charges run from €0.50 to €0.65/sqm/month.