"In 2010 overall gross take-up reached 785,200 m², which is an increase of 118% compared to 2009 and second highest result after 2007," says Lenka indelářová, analyst at DTZ.
Net take-up excluding renegotiations recorded a y-o-y increase of 140% with 624,800 m² newly leased in 2010. Gross take-up reached 197,500 m² in Q4 2010, 7% less compared to the last quarter but 83% more compared to Q4 2009. Net take-up amounted to 177,600 m², a 19% increase on the quarter and representing an annual increase of 130%.
"Due to lower availability of space it is expected that 2011 will record a lower number of transactions as well as total volume compared to 2010. The demand in 2010 was particularly fuelled by high amounts of available space and favourable conditions achievable for tenants. As built-to-suit construction will be prevailing this year, negotiations on lease transactions are likely to take longer than last year," adds Martin umera, Senior Industrial Agent at DTZ.
Overall in 2010 highest annual take-up was recorded in Greater Prague 41%, followed by West Bohemia (27%) and Moravia Silesia (14%). On the occupier side Third Party Logistics Providers were most actively taking up or renegotiating space in 2010.
The average deal size decreased to ca. 5,800 m² compared to 7,100 m² in Q3, the median deal size reached ca. 4,500 m² as opposed to ca. 3,900 m² in Q3, the number of deals was higher in Q4 than in Q3.
Total stock of modern developer-led logistics and industrial space amounted to almost 3.5 million m² at the end of Q4 2010. New supply in Q4 2010 reached 64,000 m². Completed projects include VGP Park Hradec Králové Dobřenice H3 (12,837 m²), Green Square Park Teplice (10,000 m²), Tulipán Park Ostrava Hall A (8,700 m²) and others.
"New supply for the entire year 2010 reached 150,000 m² compared to 442,000 m² in 2009. For 2011 new supply will remain restricted to built to suit projects," summarizes indelářová.
The positive results on the occupational market have translated into a significant drop of the national vacancy rate from ca. 17% at the end of 2009 to 10.4% in Q4 2010, vacant space totals currently ca. 362,300 m². The sharpest decreases were recorded in Moravia-Silesia, where vacancy decreased to 12.7% from more than 21% in Q3.
"Limited new supply in 2011 is expected to result in further decreases in vacancy. Currently availability of warehouse space is very limited in some submarkets such as the Brno area, north- east Bohemia, north west Bohemia and to a lesser extent also in west Bohemia," comments indelářová.
Headline rents for modern logistics space have remained stable q-o-q at 3.6-4.3/m²/month in Prague and the regions. DTZ expects that with continuing decreases in vacancy effective rents will start increasing again in 2011, while headline rents could grow in some cases as well.