A study released by Cushman & Wakefield today reports that the completion of new industrial space in the Czech Republic slowed “significantly” in the third quarter this year, when compared with the previous quarter. From the beginning of July to the end of last month, only 13,816 sqm of modern space was finished as developers try to lease out existing vacant space already on the market. By contrast, the second quarter saw the addition of 166,583 sqm.
“The construction of industrial property in Central Europe will drop by about 80 percent in the latter half of this year. And the construction in the first half of next year may be zero or close to zero. In terms of real figures, we are talking almost CZK 30bn (€1.2bn) that will not go to the Central European construction industry in the next 12 months.” — Ferdinand Hlobil, head of Central European industrial department, Cushman & Wakefield
Czech take-up also dropped in the last quarter, with the area of rented space falling by 40 percent from the third quarter last year, to 81,834 sqm. According to C&W, the regions with the greatest amount of vacant space are Olomouc and Pilsen (about 33 and 26.4 percent, respectively).