INDUSTRIAL PROPERTY MARKET - Q2/2022

The second quarter of 2022 follows great results of Q1 and whole previous year, but we can trace first signs of potential cool down in the future. Inflation grows with each month which is reflected in prices of already hard to find construction materials. In combination with high interest rates we expect that development of industrial parks will slow down at the end of the year. Among other negative factors are growing price of fuel and energy and decreasing household consumption. All these factors are resulting in many companies changing their strategies or even end their operations completely. Large multinational companies will still be ok, but how serious the impact will be on SMEs is still a question.

• In Q2/2022 stock of “A” class industrial premises for lease reached 10,144,452 sq m. 197,381 sq m of new industrial premises were delivered to the market.

• There are currently 1,299,452 sq m under construction. Most of these projects are pre-leased however. Over 470k sq m of new premises is expected to be delivered in Q3/2022.

• The vacancy rate dropped again to a historical low of 1.03% with only 104,409 sq m available on the market. If we do not count shell and core premises the vacancy rate dropped to only 0.86% which is 86,749 sq m. In comparison to last year, there is significantly less available space in the Moravian-Silesian Region.

• Both gross and NET take-up are performing well in comparison to last quarter, but only thanks to one large transaction in Panattoni Park Cheb. Without this 233k sq m deal the NET take-up fell in comparison to Q1/2022. Take-up results in combination with very low vacancy rate suggest that we can expect partial cooling of the market in the second half of the year.