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Industrial

The world trade map will change. Self-sufficiency in energy and transport will help European industry

The impact of the US President's executive orders regarding tariffs on domestic industry and the related industrial space market cannot yet be predicted - not least because they have been postponed for the EU until early July. Donald Trump's and his administration's regulations continue to evolve, affecting still different sectors and - most importantly - are unlikely to be definitive. However, according to real estate consultancy 108 REAL ESTATE, some more significant changes are on the horizon. Europe will start to focus more on new trading partners for sales and imports, including closer cooperation between European countries.

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Industrial

Demand for domestic industrial space is growing. The drivers are retail and manufacturing companies

The Czech industrial space market grew significantly year-on-year in the first months of this year. Specifically, the volume of new leases was 89.58% higher year-on-year compared to Q1 2024. Interest was more or less even across sectors. However, the estimates for this year are slightly behind the performance in 2021-2022, when the markets were mainly stimulated by e-commerce and related services. This is mainly due to the uncertainty associated with global trade developments and the generally tense geopolitical situation. As the latest data from real estate consultancy 108 REAL ESTATE shows, the promising performance of the domestic industrial real estate market is mainly driven by e-commerce and the still strong manufacturing sector.

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108 News

108 REAL ESTATE's industrial team strengthens and promotes - the reason is the growing interest of developers and tenants

ASSA ABLOY, CountryLife, Kion Group, Foodish or Česká pošta. These are just a small part of the new or renegotiated leases in which two members of the industrial team of 108 REAL ESTATE - Marek Kodr and Martin Musil - have participated. Thanks to a number of other successful transactions and an increase in new clients, both consultants have been promoted - Marek Kodr has been an Associate and Martin Musil a Senior Consultant since May. In addition, Karel Bachura has also joined the industrial leasing team as a Consultant and will cover tenant demand and care for developers from Brno, mainly in the South Moravia, Olomouc and Zlín regions.

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Industrial

Czech and Slovak industrial properties are rapidly modernizing - 108 REAL ESTATE introduces a new classification

The quality of warehouse and manufacturing real estate in the Czech Republic and Slovakia is rapidly increasing. This is partly in response to changing tenant requirements, but at the same time, higher standards from Western Europe are making their way into both countries. The real estate consultancy 108 REAL ESTATE is therefore introducing a new system of classification standards for industrial halls at its Czech headquarters from 1 April to reflect this development. It will offer the market a truer picture of premium industrial parks.

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Offices

Prague is running out of modern offices. The popularity of Karlín is growing, where companies compete for older and dilapidated spaces

The most desirable office address in Prague? According to real estate consultancy 108 REAL ESTATE, it is definitely Karlín. Pankrác and, thanks to the capitalized development potential, also Smíchov are close behind. In Karlín and its vicinity, there is such an interest in offices that several companies often compete for less attractive spaces - including former shops or re-leased flats. Almost immediately, and often at higher rents, space in modern class A office buildings is being leased, especially in the case of large-volume space exceeding 1,500 sqm. There is also considerable interest in new construction taking place in the area near Rohanské nábřeží.

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Industrial

Czech warehouses and production facilities are getting cheaper. Foreign companies are responding with increased demand for leases

The real estate consultancy 108 REAL ESTATE has been registering an increase in demand for warehouse and production space in the Czech Republic since the last quarter of last year. The increasing interest is mainly due to the activity and flexibility of developers, gradually decreasing rents, greater availability of labour, as well as the still excellent condition of the domestic automotive segment. For some longer-term leases, effective rents, i.e. after incentives, have fallen below EUR 4 per sqm per month. This is a price that the domestic industrial property market has not seen for several years. This is a positive boost for a number of international companies and operators looking for suitable space across the CEE region.

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Industrial

Czech Republic attracts new companies to lower operating costs - energy price is not the key factor, but its savings are

Location, price, transport accessibility, labour availability and up to 5th place energy performance / sustainable building certification. These are the main criteria for companies when selecting warehouse space. This was shown by the results of the Trends in Czech Logistics survey conducted last year by the SKLAD association in cooperation with Ipsos. According to the real estate consulting company 108 REAL ESTATE, preferences are very similar in the case of the production space segment. However, despite the survey results, it turns out that it is the costs associated with the operation of industrial real estate that have a great influence on the success of the Czech Republic's offer in international tenders of global tenants.

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