P3, a long-term investor, manager and developer of industrial real estate across Europe, signed 72 new leases for a total of 270,585 sqm of space during 2023, in what was a strong performance amid challenging market conditions. Logistics was the segment from which the highest number of potential customers made enquiries, accounting for around a third of all signed deals. P3 also built six new buildings last year in its parks in Lovosice, Myslinka near Pilsen, and Ostrava, with four additional buildings awaiting completion this year.
Last year, a total of 12 new tenants found space in P3 parks and joined the existing ones already established in the industrial areas. Around 30 % are companies from the logistics segment, such as beer distributor Zitek Logistics, which leased hall L1 in P3 Ostrava Central, ICOM TRANSPORT and Alllog Consulting, which leased space in the new P3 Plzeň Myslinka park. In addition to carriers and logistics providers, the P3 parks have also been occupied by paper manufacturer Mondi Štětí in P3 Lovosice, spare parts and accessories specialist ARB AUROPE in P3 Prague D1, veterinary clinic VetPark Clinics and aquarium fish retailer Aquarimex in P3 Prague Horní Počernice.
Jan Andrus, Head of Leasing at P3 in Czech Republic, says: “The composition of tenants in our parks is very diverse, illustrating that we are flexible and can meet our clients’ needs in many ways. Although we have seen a drop in demand by up to half compared to the previous year, our team has managed to conclude in total more than seventy new leases, renegotiations or prolongations. Tenants were mainly interested in Prague locations, where demand is still strong. This increases the pressure on existing tenants to retain their space, and it is not uncommon for tenants to contact us to negotiate lease extensions before the lease expires. There has also been a clear increasing trend where tenants previously focused in one direction are expanding their services and business. This means we assess with tenants whether their existing premises are suitable, or whether they require further alterations or reoccupation. This also makes our work much more creative and fun.”
Also in 2023, the commercial real estate developer completed construction of nearly 70,000 sqm. In the first half of the year, the first phase of construction was completed at P3 Plzeň Myslinka, where halls A and B were built. Simultaneously, P3 completed the second phase in the industrial business district P3 Ostrava Central. It included the construction of three new halls of almost 30,000 sqm. P3 Lovosice also received new premises, namely hall B1.
Aleš Zacha, Head of Development at P3 in Czechia, adds: “Last year, we continued to build new premises in strategic transport locations. Ostrava, Lovosice, and Myslinka are connected to the main transport routes in the region and offer an attractive option for our tenants, not only from a distribution point of view. In all locations, due to the very low supply of warehouse space, we embarked on speculative development without a known tenant in advance; and despite a relatively large drop in demand in 2023, we managed to occupy almost 60% of the speculative space on completion. We also offer variable space options that are available essentially immediately and with a great deal of flexibility in both unit size and lease length. We continue to believe in speculative development and will deliver nearly 35,000 additional m² to the market during 2024. At the same time, we are also working on several build-to-suit projects such as our new land in Jeřmanice. “
The construction of four more halls started at the end of 2023 and will be completed during this year. Among these, almost 17,000 sqm will be completed in Lovosice and another 17,500 sqm in P3 Plzeň Myslinka. Work has also begun on a newly purchased plot of land in Jeřmanice near Liberec, where a 16,700 sqm customized hall will be built.
