Strong levels of new industrial supply continued in the last quarter of 2014 in the Czech Republic, with 75,400 sqm delivered in six warehouses. The result brought the total supply of developer-led industrial stock to 4,884,000 sqm. Significantly, none of the space brought to market in the last three months of 2014 had any vacancy.
Last quarter supply brought the year’s total volume of new space to 354,100 sqm, up 32 percent y-o-y, and a full 67 percent higher than in 2012. These figures make 2014 the strongest year, in supply terms, in the post-crisis period. The market is still driven by non-speculative construction, although the number of speculatively built premises is gradually increasing. Of the total supply delivered in 2014, approximately 87 percent was leased prior to completion. The largest volume of space completed in 2014 (125,600 sqm, or 35%) was delivered in the Greater Prague region. Developers completed another 60,700 sqm in Central Bohemia, while the Pilsen and South Moravian regions added 55,500 sqm and 48,400 sqm respectively.
