A newly issued report by the Industrial Research Forum (IRF) indicates that vacancy in Czech industrial and logistics property is continuing its drop through Q1 2011. The IRF consists of the sharing of non-sensitive market information between local offices of property consultants CB Richard Ellis, DTZ, Jones Lang LaSalle and King Sturge.
At the end of Q1 2011, a total of 322,500 sqm of modern warehouse space remained vacant, which represented less than 9 percent of the 3.62 million sqm total. Vacancy the previous quarter was at 10.4 percent, and according to Lenka Šindelářová, consulting and research manager at DTZ, the decrease could still decrease through 2011 because of the pre-leasing of most of the supply pipeline.
“This will put pressure on prime headline rental levels that are expected to increase slightly towards the end of the year,” Šindelářová said in a press release. In Q1 2011 approximately 18,500 sqm of warehouse space was completed while over 200,000 sqm of space is currently under construction.
Lack of space accounts for a decline in take-up, with gross take-up including renegotiations slipping 44 percent from the previous quarter and 19 percent year on year. “It is not expected that total take-up will reach levels seen last year due to limited available space and longer periods of lease negotiations on built to suit projects,” said Martin Šumera, senior industrial agent at DTZ, in the press release.
