C&W: Industrial vacancy drops to 6.8% in CE

Industrial development as well as take-up in Central Europe is accelerating slightly, according to recent research by Cushman & Wakefield. Investor appetite for commercial properties is also increasing, with a shortage on the supply side forcing buyers to pay more in order to complete deals. This trend is most obvious for logistics and production facilities. “The period of low interest rates has lasted a very long time. This restricts the range of investors’ opportunities for depositing and increasing their funds, and commercial properties present a good opportunity,” says Ferdinand Hlobil, head of Cushman & Wakefield’s CE Industrial Team. “The economy is growing, companies are expanding and e-commerce is developing. As a result, the demand for logistics and production properties is growing, in effect increasing their value.”

Leasing was also steady, with 2.1 million sqm in deals signed and vacancy decreasing to 6.8 percent in Central Europe, the lowest it’s been in nine years. The region currently offers 18.5 million sqm of warehouse space, with Poland approaching the 10 million mark and the Czech Republic having just cleared the 5 million sqm mark.