In Q3 2016, industrial space totalling 60,200 sqm was completed within 4 industrial parks across the Czech Republic. Major completions included the first two halls at Panattoni Park Prague Airport II., of which one was completed for DSV (23,300 sqm), and the second warehouse (10,400 sqm) was built speculatively. Another notable completion took place in VGP Park Tuchoměřice (13,200 sqm) where construction of a partially pre-let warehouse was finished. The share of speculative completions in Q3 2016 remained at 36% which is the same proportion as in the previous quarter.

 

There was 474,800 sqm of storage and industrial space under construction at the end of Q3 2016, most of it in the Greater Prague area (107,800 sqm). During Q3 2016 development works started on 48% (i.e. 229,800 sqm) of the total space that is currently under construction across the country. 42% of the industrial construction pipeline is due for delivery by the end of 2016. The share of speculative development under construction decreased to 31%.

 

Prime headline rents achieved in the Czech Republic remained stable during Q3 2016 and currently stand at 4.25 EUR/sqm/month. The rents for mezzanine office space stand at between 8.00-9.00 EUR/sqm/month. Service charges typically reach around 0.50-0.65 EUR/sqm/month.