During the 3rd quarter of 2022, the total area of premium industrial premises for lease exceeded 10.6 million sq m. The vacancy rate remained at an all-time low 1.03 %. More than 1,152,000 sq m of industrial space was under construction.
“In the third quarter of 2022 the industrial market slowed down in comparison to previous record breaking year and a half after tenant's demand decreased. One fifth of all entreprises in the Czech Republic announced that they plan layoffs which is one of the ways they are trying to counter rising energy prices and other costs. Developers are also more cautious in development of new industrial parks as rising prices of rents are not always sufficient to make up for initial investment. Investment often made with loan affected by increased interest rates by Czech national bank. Tough times not only for tenants, but for developers as well will continue to atleast march of next year. However its more likely that this period will last longer,” commented Michal Bílý, head of the 108 AGENCY market research department.
The detailed results of the third quarter on the domestic industrial real estate market, published by the real estate consulting company 108 AGENCY, are available for download in the Czech or English version on the company's website.