Market in Minutes | Czech Republic Industrial Market Q3 2022

During the first three quarters of 2022, the market witnessed a significant increase in total stock of modern industrial space intended for lease, which expanded to10.7 million sq m.
About 939,000 sq m has been added to the total rentable stock since the beginning of the year. Compared to the same period last year it meant a 161% increase. It is predicted that at the end of 2022 the industrial real estate market will approach the 11 millionsq m stock threshold.
Even though the new supply set a new record, vacancy rate in Q3 2022 was 56 bps lower than a year ago, also being lower than ever (1.2% nationwide, below 1% in Prague and 0% in6 out of 14 regions).
Under-construction pipeline ballooned from 1.12 million sq m at the beginning of the year to a record 1.33 million sq m in September 2022 (representing 12% of the existing stock), of which 64% was already pre-leased.
Although gross and net demand recorded a significant decline during Q3 (by around 50%), the year-on-year comparison of YTD figures remained in positive territory. Since the beginning of the year, gross take-up climbed to1,858,000 sq m (3% up y-o-y) and net demand for the same period totalled 1,232,100 sq m (14% up y-o-y).