Over the past few weeks, there has been a sharp rise in the price of crucial commodities in construction, mainly of steel, plastics and wood. Prices are soaring in retail and in the industrial buildings for manufacturing or logistics sector, and these are having a marked impact on already high rental costs.
There are ever more members of our team who focus on a healthy lifestyle, and this goes hand in hand with regular exercise. As such, 108 has decided to support our enthusiasm for exercise with a “million challenge”.
The first quarter of 2021 saw record low vacancies in the greater Prague region, affirming consistent high interest in industrial premises in premium locations. High demand is pushing lease prices upwards, with lease prices having grown by 25 % per sq m year-on-year within the Prague cadastral district, for example. The Czech industrial real estate market is being impeded by drawn-out approval processes and a lack of new options in areas with the greatest demand.
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The Czech real estate consulting agency 108 AGENCY has launched a unique application that makes it easier for users to orient themselves in the current menu of industrial premises in the Czech Republic.
The Czech real estate consultancy, 108 AGENCY, has published the first edition of an original project. Its report provides an overall summary of the most interesting data and information from the industrial real estate market from the perspective of individual development companies and owners. An updated report will be issued regularly twice a year.
The announcement of the prestigious CIJ Awards 2020 real estate results saw another victory for consultancy 108 AGENCY. For the fifth year, we defended out Best Warehouse Real Estate Agency title, affirming our role as market leader in brokering industrial real estate.
In the commercial real estate market, there is currently a shortage of industrial and logistics premises, as well as land suitable for their construction. This is mainly due to growing demand, and the fact that local governments aren’t motivated by tax benefits to construct them. The situation is most evident in the vicinity of large cities, and also affects the growth of rent levels. Moreover, it has also caused a new trend in the form of the extension of rent contracts. The first new projects of over 20,000 sq m can only be expected in the second half of 2022.
The fourth quarter of 2020 closed a year full of changes and upcoming trends, also reflected within industrial real estate. Despite the pandemic, the industrial segment proved stable, and there was a significant acceleration in the development of e-commerce, and specifically the digitalisation of the entire retail sector. There remains a high demand for premises on the market from investors and clients, and this interest puts pressure on prices, which will increase significantly at premium locations in 2021.
