Czechy

Expansion into the Czech industrial market

06 October 2017

BNP Paribas Real Estate has launched a department to support clients seeking to operate on the industrial and logistics market in the Czech Republic. The person responsible for coordinating all activities and client support for the segment is Tomasz Gnich. At the moment the Czech BNP Paribas Real Estate office employs 19 staff.

I trust that the management and client and business partner collaboration model that for several quarters now has been bringing consistently good results in Poland will also work on the promising Czech market. The decision to set up a department responsible for the logistics and warehouse sector is a natural step forward in implementing the growth strategy for our organization across CEE

Katarzyna Pyś-Fabiańczyk, Head of Industrial & Logistics Department, Central and Eastern Europe, BNP Paribas Real Estate Poland

A promising market

The company’s analysts estimate that at the end of Q2 this year there were approximately 540 000 sqm of warehouse space under construction in the Czech Republic, 44% of which were located in the Prague region. Moreover, it is the Prague region itself that has attracted more than 40% of the leases signed in H1.

Tomasz Gnich stresses that pre-let leases have already been signed in respect of most schemes under construction, while the vacancy rate has reached a stable level of around 4%, which proves that the situation on the market is extremely good. Additionally, the high demand for modern logistics properties generated by, amongst others, 4.5% economic growth, high level of consumption, growing export and the dynamic e-commerce sector, is also not without significance here.

BNP Paribas Real Estate analysts estimate that between January and the end of June the Czech warehouse and logistics market has grown by more than 233 000 sqm to reach the total size of 6.7 million sqm. In turn, the key transactions recorded in the first two quarters included Tchibo in Panattoni Park Cheb III – 34 100 sqm., HP Tronic in Prologis Park Jirny – 30 400 sqm and Raben Group in Panattoni D5 Horovice – 24 500 sqm.