In an effort to optimize costs, a growing number of German e-shops are serving their customers from warehouses located in the Czech Republic. E-shops leased 300,000 sqm of warehouse space on the Czech market for their distribution centers in 2015, two-thirds of which supply the German market, according to CBRE. The relocations from Germany are expected to continue this year, with an additional 400,000 sqm of logistics space set to be leased by e-shops. Demand is also growing for spaces that are 50,000 sqm and larger. Amazon’s shed in Dobrovíz is the largest example of a distribution center servicing customers in Western Europe from Prague. The 100,000 sqm distribution center is 120 km from German border. The German online supermarket Allyouneed.com operates its central warehouse in Pilsen, while Babymarkt.de has a warehouse in Kadaň. Current demand for logistics warehouse space from German companies is targeting Prague, Pilsen, and cities along the German border, such as Cheb and Ústí nad Labem.
