Monday, 16 February 2015
Slovak industrial and logistics market in record numbers by the end of 2014 (SK)
End of the year 2014 brought in the Slovak industrial and logistics market significantly elevated activity in signing new and extension of existing lease agreements. The total volume of closed transactions in Q4 2014 has reached a record level of 205,000 m² which represents a two-fold increase of signed contracts volume over the same quarter last year (Q4 2013) and a four-fold rise compare to previous quarter (Q3 2014). Net take-up in Q4 represented ca. 41,000 m² which is app. 23,000 m² more than in Q4 2013.
This year, we saw approx. 80,000 m² of new industrial and logistic space delivered to the Slovak market and A class industrial and logistic stock currently stands at approx. 1.3 mil. m². The clear leader in the supply of logistics space in Slovakia is developer Prologis with nearly 480,000 m² of modern warehouse space followed by P3 Logistic Parks with logistic area of app. 151,000 m² and top three closes Slovak developer HB Reavis with nearly 120,000 m².
While in 2013 we saw approx. 235,000 m² of industrial and logistics space to be transacted, in 2014 market players were more active and by the end of the year, we recorded approx. 333,000 m² volume of concluded deals, which represents 42% year-to-year increase.
The vast majority of Q4 2014 transactions took place in Prologis logistics parks. In December, Tesco renewed its lease agreements totaling ca. 126 000 m² of industrial and logistic space within two Prologis parks in Senec and in Galanta. In addition we have seen renegotiations and extensions of various companies in several Prologis logistics parks in total amount of approx. 16,000 m².
New lease contracts were signed within all Slovak regions (West, Central, East). The largest contract of approx. 16,000 m² was signed in Košice (Eastern Slovakia) where developer Immorent commenced construction of new logistics hall (built-to-suit) for company Howe within the existing park Immopark Košice.
“We expect continuous strong competition as far as new and existing tenants are concerned, especially in the Bratislava region. The main factors remain to be headline rents, rent free periods and possibilities of reducing service charges. It is positive that for the last 12 months we have registered increasing demand in Zilina and Eastern Slovakia. "says Stratov.
In terms of investment activity the Slovak industrial market in 2014 was behind its performance from previous years. After €77 million that was transacted in Slovak industrial and logistic properties in 2013, this year we saw only one investment transaction.
In the last quarter, three new warehouse and logistics halls were completed and delivered to the market in total area of approximately 45,000 m²: new warehouse in DNV Logistics Park for company Schnellecke (16,000 m²), new logistics space in Prologis Park Bratislava in total amount of 26,000 m², where almost 35% is preleased by logistic company Geis and the last addition represents new built-to-suit warehouse in Immopark Žilina for distribution company DPD (2,800 m²). The last three months of 2014 brought 33% larger delivery of new space than it was at the same time last year.