The Q4/2020 was a quarter of major project announcements in the Moravian-Silesian region and continuing COVID restrictions. Major drop in vacancy took it back under five percent with vacancy now being 4.94 % and 454,575 sq m of modern industrial space now available. Completed construction reached 83,451 sq m and projects currently in construction reached 342,857 sq m. Total stock reached at the end of 2020 9,190,995 sq m. With projects currently in planning phase the stock has a potential to reach 14 mil. sq m in the future. Rents slightly increased in Q4 and we expect them to rise steadily in the upcoming year.
Situation in Prague and surrounding area remained relatively the same. There continues to be a low vacancy rate and future pipeline of projects doesn’t offer sufficient level of new development prospects to accommodate the growth potential. We believe that continuing rise of e-commerce, FMCG and retail demand will stimulate improved cooperation between the business side and local municipalities and other governmental institutions to create additional opportunities for industrial development in this important region.