There was slightly optimistic news in the first quarter of 2010 with demand reaching over 158,000 m2. Nearly 110,000 m2 related to new leases and existing tenants expand, whereas ca. 50,000 m2 was the result of renegotiating existing leases. Compared to the previous quarter (Q4 2009) demand in Q1 2010 shows an increase of 42 %. The y-o-y comparison (Q1 2010 vs. Q1 2009) shows an even higher increase in demand by 84 %. Even though growing demand led to a reduction in vacancy rate in the first quarter 2010 by 0,7 % to around 16,9 %, it was not strong enough to encourage speculative development. In the first quarter of 2010, there were no new completions across the Czech industrial and logistics market, although there are 69.000 m2 under construction. The majority of these have pre-lease contracts signed. In total the industrial and logistic market in the Czech Republic reached 3,36 mil m2 at the end of Q1 2010. Headline rent remains the same, but can be lowered by individual incentives provided by developers. 







Note for editors: The three key data areas (total stock, take-up and vacancy rate in the Czech industrial and logistics market) are result of new mutual cooperation among King Sturge, DTZ and CBRE property consultancies.