The completion of the D8 motorway to Dresden at the end of 2016 has made the Ústí nad Labem and Karlovarský regions more attractive for investors, as they are located near the German border and offer an experienced labor force. JLL expects strong demand from retailers, e-commerce and 3PLs for warehouse space will continue in 2017 due to solid domestic demand from Czech households. “Manufacturing will remain a significant part of the demand but due to a labor shortage it will face difficulties in some highly attractive regions with low unemployment rate,” says Blanka Vačková of JLL, adding that the historically low vacancy rate will further encourage developers to undertake speculative construction. In 2016, the Czech industrial property market broke the 6 million sqm mark and is, along with Poland, one of the two most advanced markets in the CEE region. Gross take-up exceeded 1.2 million sqm, pushing vacancy down to 4 percent, which is a decade low and one of the lowest indicators in market history.
