Property adviser DTZ has recorded a sharp increase in Q2 2010 leasing activity in the industrial market in the Czech Republic, with 221,600 m[sup]2[/sup] being transacted, the highest level in the past two years. This represents a 41% increase on the quarter and a 147% improvement compared to the same time last year.
Property adviser DTZ has recorded a sharp increase in Q2 2010 leasing activity in the industrial market in the Czech Republic, with 221,600 m2 being transacted, the highest level in the past two years. This represents a 41% increase on the quarter and a 147% improvement compared to the same time last year.
Net take-up - excluding renegotiations and relocations within stock - reached 193,500 m2 in Q2, a 79% increase compared to Q1 2010 and 181% increase compared to Q2 2009. Around one third of the transactions were pre-leases for warehouses that are not yet completed. As development activity remains limited, tenants are increasingly opting for pre-leases. This confirms that tenants have started taking advantage of the lower rents and secured leases at favourable conditions, said Lenka Hartmanová, analyst at DTZ.
West Bohemia had the highest share of net take-up (40%), followed by Greater Prague (25%) and North-East Bohemia (16%), In Greater Prague renegotiations accounted for more than a third of the gross take-up (35%).
After a drop in demand from production firms last year, the Q2 2010 take-up showed a resurgence of manufacturing companies with a 50% share of gross take-up (57% on net take-up), followed by third-party logistics providers (28%) and end-users (22%). The average deal size in Q2 2010 increased to 6,300 m2, the median deal size was recorded at 4,500 m2.
CTP Invest dominated the overall leasing activity in Q2, followed by VGP and ProLogis. The largest transaction in Q2 was the expansion of Lear in D5 Logistics Park (19,500 m2), followed by the lease of Sony DADC in ProLogis Park Stenovice (18,000 m2) and extension of Techdata in CTPark Bor (16,300 m2).