1.4 million sqm of industrial space under construction in the Czech Republic

19 October 2023

The Czech Republic has 1.4 million sqm of industrial and logistics space under construction, the most so far. Of the space under construction, almost 833,000 sqm is already pre-let. Of this take-up, 38 per cent is being built for tenants in the manufacturing sector, 30 per cent for retail and 16 per cent for logistics. This is according to an analysis by real estate consultancy Savills. It mentions, for example, a large logistics centre for clothing retailer H&M, which is being built near Cheb.

“The high activity of developers and record construction is clearly a positive sign. The market’s confidence in new construction creates ideal conditions for the arrival of new tenants, as well as for the possible growth of established companies,” said Jana Čožíková from the industrial real estate department at Savills.

The largest amount of industrial space was completed in June in the Karlovy Vary Region, with almost 336,000 sqm. This is due to the construction of a 233,700 sqm logistics centre for H&M, in addition to a 60,600 sqm distribution centre for tyre retailer Goodyear.

The Pilsen region has nearly 207,000 sqm under construction. In this region, for example, Arete is building a 31,000 sqm hall for Duvenbeck in Rokycany. Approximately half of all the 102,000 sqm of space under construction there was vacant.

In the South Moravian Region, 187,000 sqm is under construction. The largest production hall currently under construction in the region is the 52,600 sqm hall in CTPark Blučina, which is being custom-built for Inventec.

In Ústí nad Labem, 165,000 sqm of rentable industrial space is under construction. For example, 29,600 sqm of space is under construction for Fielmann at Garbe Park Chomutov or 18,500 sqm for Fiege at CTPark Žatec. In June, there was 72,000 sqm available under current construction.

Prague and its immediate surroundings had 137,000 sqm under construction in the middle of this year, of which 111,000 sqm was available for lease. The largest buildings in this submarket are being built by CTP in Kozomin, near the D8 motorway.

The least amount of warehouse and production space for rent was built in Zlín, Vysočina, South Bohemia, Pardubice and Hradec Kralove.

Source: Savills and CTK

Example banner for displaying an ad. It can be higher.