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Boom in industrial space in the Czech Republic
15 Feb, 2007, Frankfurt
More industrial space came onto the Czech real estate market last year than ever before,with the 480,000 m² of new space representing a twofold increase on the previous year (2005: 241,000 m²). The Czech Republic has over 1.35 million m² of modern industrial space in the storage, logistics and light industry sectors. Ferdinand Hlobil, Head of the Central Europe Industrial Department at international real estate consultancy organisation Cushman & Wakefield (C&W), stated: "The figure of 500,000 m² leased space recorded last year is 60 % higher than in the previous year and indicates a genuine boom in industrial space. Lessees are particularly interested in the Czech Republic thanks to its proximity to Western Europe and Scandinavia, lower labour costs in comparison to other European countries and its relatively well-developed infrastructure."
According to C&W, lessees and developers are showing increased interest in locations outside of the main cities. For example, 25 % of all new developments were located along the D5 motorway in the Pilsen region near the German border.
C&W predicts that this boom in industrial space in the Czech Republic will continue over the coming years.
For the current year, experts forecast an increase of around 350,000 m² in modern industrial space. Coupled with an expected leased volume of around 400,000 m² this will result in a fall in the vacancy rate to an estimated 5 % (Western Europe: 8 to 12 %).
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