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News Release

Prague

Changes on the industrial market winners´ podium: Pilsen overtakes Brno

Prague´s A-class industrial stock is now equal to double the amount of stock that was recorded in the whole Czech Republic ten years ago


​Prague, 29 February 2016 – 2015 was a very good year for the industrial market in the Czech Republic and brought about a number of records and “firsts”.

At the end of Q4 2015, the total modern A-class industrial stock in the Czech Republic (owned by developers and investors) stood at 5.69 million sqm. Greater Prague remains the largest industrial market in the country with a 40% share. It is worth pointing out that Prague´s A-class industrial stock of 2,264,000 sqm is now equal to more than double the amount of stock that was recorded in the whole Czech Republic (1,033,000 sqm) ten years ago, in 2005. 

As of Q4 2015, the Pilsen region became the second largest industrial market in the country with 15.5% of the stock. Brno has moved to third place with a share of slightly below 15%.
New supply for Q4 2015 reached 153,300 sqm when 17 new schemes were delivered to the market. Speculative construction accounted for 22% of all delivered projects. The majority of new completions were situated in the Pilsen region (49%). In 2015, the total volume of newly built industrial space reached 565,700 sqm which is the highest figure recorded since the global financial crisis. The highest share of new space was delivered in Prague (45%) followed by the Pilsen region with 30%.

Major completions of 2015
Prague Airport Park I - Amazon bldg. - Prague - 133,000 m2
CTPark Bor - DHL (Primark) bldg. - Pilsen - 62,000 m2
Prologis Park Prague Jirny - Mall CZ bldg. - Prague - 32,000 m2
Prologis Park Prague Airport - Červa bldg. - Prague - 30,000 m2
Prologis Park Prague Airport - DC1 Prague - 30,000 m2
Source: JLL, Industrial Research Forum, January 2016


“2015 was also a record year in Czech history in terms of gross take-up, demonstrating that Czech Republic remains a strategic location for all industrial sectors,” says Harry Bannatyne, head of industrial agency at JLL. Gross take-up reached 1,394,300 sqm in 2015 which is slightly higher than the previous record level registered in 2014 (1.38 million sqm). Net take-up in 2015 reached 875,600 sqm, replicating a very similar result to last year. The Prague, Pilsen and Brno regions accounted for the highest shares of both gross and net take-up during the period.

In Q4 2015, the countrywide vacancy rate dropped to 5.1% which is the lowest registered vacancy rate on the market since the pre-crisis period. Only a year ago, at the end of 2014, the vacancy rate stood at 8.3%. “Demand is dramatically outstripping supply and if this continues, we will see further reduction in the vacancy rate,” explains Harry Bannatyne and adds: “Automotive suppliers are still a key driving force of industrial demand in the Czech Republic, accounting for more than 20% of all transactions.”