21:38 Brno makes the most attractive industrial locality | |
| Businesses have leased 127,000 sqm of modern industrial space in the
Southern Moravian Region over the past quarter. This figure is roughly
equal to that leased by corporations in the entire Czech Republic. At
the same time, the interest noted in the Southern Moravian Region has
been concentrated exclusively on Brno. "After several years of fasting, the demand for modern industrial space can now be satisfied in Brno. Some firms have been kept waiting for several years for options to expand to or enter the Brno market. However, they were prevented from doing so by insufficient availability in that location,” said Jaroslav Kaizr, Head of the Industrial Letting Team at Cushman & Wakefield. "Last year, a company named CTP won a tender for the development of plots of land in Černovická Terasa, and this year it managed to deliver new premises for those interested parties, particularly among manufacturers,” added Jaroslav Kaizr. In total, 292,000 sqm of industrial space was leased in the Czech Republic in the third quarter. This is the highest figure over the entire history of the Czech industrial market (measured by the results achieved in the individual quarters). In the second quarter of 2011, leases reached roughly half of that. "The second half of the year is traditionally stronger; therefore, it is no major surprise. What is important is the year-to-year comparison, which demonstrates that seven percent more space was leased in the third quarter of this year than in the same period last year. This may be no ground-breaking news, however, it represents a piece of good news for the market, namely, that the market is stable on the demand side, even under the current conditions,” said Jaroslav Kaizr. "We expect the market to maintain such stability. We see certain threats in the form of insufficient availability of premises in some areas, which has been caused by cautious approaches on the part of developers and their financing banks. Developers still tend to shy away from speculative development projects. The overall volume of leases this year, according to estimates by specialists at C&W, should be in the range of 700,000 sqm and so it will probably remain under last year’s level that was a record-high as regards demand.” The scope of developments reached 142,000 sqm in the third quarter, and it trebled as against the previous quarter. In comparison to the same period last year, there has been an increase of 74 percent. By far the largest portion of all supply (75 percent) was executed by CTP in its park known as CTPark Brno II. It completed some new units for companies such as Wistron and Kompan. The remaining projects have been completed by VGP, which has expanded its activities in Liberec and Hrádek nad Nisou. "This revival in the area of development projects still cannot be considered an unequivocal trend. It rather represents a short-term trend, which will probably continue until the last quarter of 2011. The subsequent periods, however, will not see such volume of development; developers are still waiting with new development projects until they have signed contracts with their future occupiers,” explained Jaroslav Kaizr. "The vacancy rate dropped to 6.8 percent in the third quarter, which is the lowest figure since 2007. Thanks to the new stock coming on the market in the second half of this year, we expect that the share of available stock would remain stable for some time. In the longer term, however, it is possible to count on its further decline,” said Jaroslav Kaizr. "This will result in higher rents in the most sought after places,” said Kaizr. "Insufficient availability of modern industrial stock on the part of developers, particularly in areas with low vacancy rates, results in efforts to identify alternative options, such as subleases or selling down of leases. Those options often represent the sole opportunity for prospective occupiers to find suitable premises in places where they want them and at a time when they need them,” Jaroslav Kaizr added. Source: Europaproperty.com | |
|
| |