Panattoni completed over 210,000 sqm of industrial space last year, with nearly 386,500 sqm currently under construction. In both parameters, it ranks first among all industrial developers in the Czech Republic. New tenants of the completed Panattoni parks include leading companies such as Jungheinrich, Shipmonk, Shape Corp. and Panasonic. Panattoni added three projects to its portfolio with the highest rating of Outstanding according to the strict international sustainability certification BREEAM New Construction, thus consolidating its position as a leader in sustainable industrial construction in the Czech Republic. The theme of sustainability will continue to dominate future years of industrial development.
Panattoni already has 1,700,000 sqm of built space in its portfolio. With the quality of its sites, it has long been successful in finding tenants for its projects during the permitting process or even before the projects are completed. In 2024, 94,000 sqm of new and custom-built space for renowned companies such as Hanon, Goodyear and VAFO will be brought into use.
“Although there has been a slight cooling of the market, I am pleased to say that we are still able to conclude lease agreements during the preparation or construction process. Last year, we signed six new agreements with prospective tenants covering an area equivalent to 173,000 square meters. If we add the area of new tenants in existing halls, we reach a level of almost 200,000 square metres. I am pleased that we also have two of the largest transactions in the last quarter – 30,000 sqm at Panattoni Park Karlovy Vary was leased to WACKER and 27,000 sqm at Panattoni Park Ostrov South to an as yet undisclosed tenant. Due to the low vacancy rate and limited construction options, we expect high demand for projects that are at least in the advanced permitting process in the coming years,” says Pavel Sovička, Panattoni’s CEO for the Czech Republic and Slovakia.
The total area of modern industrial space for lease in the Czech Republic reached 11.70 million sqm at the turn of the year. After rapid growth in recent years, rental prices have stabilised. In the fourth quarter of 2023, the vacancy rate increased slightly, but is still at a low level of 1.75%. Given the limited construction opportunities in the Czech Republic, there should not be a major change in the coming years, which supports a 30% decline in construction.
“We are currently seeing strong demand for manufacturing space, particularly from the automotive sector. We are seeing strong interest specifically in the segment focusing on the production of components for electric vehicles. Conversely, there is still no recovery in the e-commerce, logistics and distribution segments. But even so, some companies are looking for new space in which to consolidate and automate their warehouses,” adds Jiří Zita, Director of Commercial, Panattoni.
Tenants want sustainable solutions.
Panattoni has consolidated its position as a leader in sustainable industrial construction with three projects with the highest level of rating according to the rigorous international BREEAM New Construction certification. The new hall of Panattoni Park Stříbro achieved the Outstanding rating. Another Panattoni success was the Amazon robotic distribution centre project at Panattoni Park Kojetín. In addition, the Cheb hall for the online car spare parts retailer AUTODOC received a record score, making it the most sustainable industrial building in the world according to this prestigious certification. Panattoni also specialises in building on former brownfield sites. Building on sites with an industrial tradition makes a lot of sense from a sustainability perspective. In addition to removing old environmental burdens, such projects revitalise dead sites and make use of established infrastructure. A total of 494,000 sqm of space on former brownfield sites has already been developed or is under construction.
“The entire industrial development sector in the Czech Republic is very sustainable compared to the Central European region. This makes us still an interesting location for investment by companies that have clearly defined their goals in this area. We hope that the Czech legislation will catch up with the shortfall in community energy this year. We look forward to being able to include our solar power plants, for example, in these projects and to be even better neighbours in the localities where we operate. Just as we do in Western Europe,” comments Pavel Sovička.
Industry brings opportunity to neglected regions.
Regions that were previously neglected are experiencing major industrial development. In the Moravian-Silesian Region, for example, projects from the Fair Transformation Fund are starting to be implemented. “We are also very active here, for example, we are planning a large brownfield zone at the former Barbora mine. I believe that the continued modernisation of the industry will prevent the outflow of young people and raise the standard of living in this region,” says Matěj Hejma, Regional Development Director, Panattoni. “Thanks to the proximity of Germany and the friendliness of local governments, we see great potential in the Karlovy Vary Region, or in the entire western border region. After all, we are very active here and I am happy that we are helping the economic transformation of this area, which has been neglected for a long time. The infrastructure that we have prepared for businesses together with the region and cities has translated into numbers – our tenants are some of the largest employers in the entire region,” adds Klára Sobotková, Regional Development Director, Panattoni.
However, an example of the development of a former industrial site can also be found near Prague. Panattoni is planning a large Panattoni Business Park Kladno on the brownfield site of the former Poldi smelters. “The two planned halls will have a total area of 90,000 sqm, and negotiations are currently underway with very interesting potential tenants. The park in an established industrial zone will offer space for sophisticated robotic solutions and new forms of automation. A major advantage is the nearby power plant, which can provide an above-standard high power input of tens of MW. Thanks to the planned high-speed railway, we may soon see a time when people from Prague will go to work in Kladno and not vice versa,” concludes Jan Andrejco, Regional Development Director, Panattoni.
