The demand for industrial real estate on the Czech market could reach historic levels in 2014, according to the latest report by CBRE. Net take-up for industrial space could exceed 2008 demand, reaching 800,000 sqm. The third and fourth quarters tend to be stronger than the first half. Take-up has already reached 475,500 sqm, and CBRE expects several big transactions to be signed before the end of the year.
Michal Bezděka, head of the industrial agency at CBRE, attributes the growth to the country’s cheap labor force, proximity to Western markets and the fast growth of e-commerce. “The automotive industry has been a stable source of the demand as well. Automotive companies such as Škoda and Hyundai are currently preparing to launch new models, which stimulates the demand of the suppliers for new production space in the vicinity of the plants in Kvasiny and Nošovice,” says Bezděka. The expansion of well-proven companies such as Červa and VF Corporation has a significant impact on the volume of demand as well, Bezděka adds.
