Warehouse developers are shifting their focus to locations in North and West Bohemia, which have become increasingly popular due to their proximity to Germany and relatively cheap and educated labor pool, according to 108 Agency. The company surveyed top logistic developers active on the Czech market, including CTP, Goodman, P3, Prologis and Segro. “Locations to the north and northeast of Prague are becoming increasingly attractive as well,” says Jakub Holec, CEO of 108 Agency.
The research also indicates that next to sufficient workforce developers also take into consideration the approach local municipalities have toward their projects. E-commerce will be the main driver of warehouse development, taking over from automotive suppliers, due to a slight decrease in demand from German car manufacturers. Rent prices have remained flat in the vicinity of €4/sqm/month, and vacancy is expected to be around 7 percent in 2016. Speculative development will continue to be marginal, with developers only adding a small proportion of speculative space to BTS facilities.
