INDUSTRIAL MARKET HIGHLIGHTS - H2 2020
- Modern industrial stock in the Czech Republic grew by 314,800 sq m in H2 2020, indicating a mild (7%) decline in construction activity compared to H1. The total industrial inventory intended for lease totalled 9.11 million sqm, while 35% of that was found in Prague (i.e. 3.2 million sq m).
- Nationwide vacancy rate fell to its historical low of 3.3%, having dropped by 111 basis points (bps) from the middle of 2020 and by 41 bps since the beginning of the year. The share of unoccupied space in Prague declined from 2.7% in mid-2020 to 1.5% at the close of 2020.
- At the end of 2020, industrial premises totalling 692,500 sq m were under construction across the country, being only marginally (1%) below the development pipeline 12 months ago. 26% of this construction pipeline represent buildings completed to a shell & core finish.
- Leasing activity on the industrial market demonstrated strong results, proving it to be one of the most resilient asset classes during the Covid-19 pandemic. Gross leasing activity in H2 2020 amounted to 829,000 sq m, an increase of 14% compared to the volume of transactions signed in H2 2019.
- Net demand in the last six months of 2020 totalled 527,400 sq m, which was almost identical to the net take-up recorded in H2 2019.