A look at the current trends and outlook of the industrial development segment

A look at the current trends and outlook of the industrial development segment
A look at the current trends and outlook of the industrial development segment
--

The development company Panattoni completed over 210,000 square meters of industrial space last year, ine currently has almost 386,500 m2 under construction2. In both parameters, it ranks first among all industrial developers in the Czech Republic. Among the new tenants of the completed Panattoni parks are leading companies such as Jungheinrich, Shipmonk, Shape Corp. or Panasonic. In its portfolio, Panattoni added three projects rated at the highest level of Outstanding according to the strict international sustainability certification BREEAM New Construction, thereby consolidating its position as a leader in sustainable industrial construction in the Czech Republic. The theme of sustainability will dominate the next years of industrial development.

Panattoni already has 1,700,000 square meters of built-up area in its portfolio. Due to the quality of its locations, it has long been successful in finding tenants for its projects already during the permitting process or even before the completion of the projects. In 2024, 94,000 square meters of new and custom-built premises for renowned companies will be handed over for use Hanon, Goodyear or VAFO.

“Although there has been a slight cooling of the market, I am pleased to say that we manage to close leases during the preparation or construction process. Last year, we concluded six new contracts with future tenants with an area corresponding to 173,000 square meters. If we also add the area of ​​new tenants in the existing halls, we reach the levelthat’s itarea of ​​200,000 square meters. I am happy that we also have the two biggest transactions of the last quarter – we leased 30,000 square meters in Panattoni Park Karlovy Vary to WACKER and 27,000 square meters in Panattoni Park Ostrov South to an as yet undisclosed tenant. Due to the low vacancy rate and limited construction possibilities, we expect a high demand for projects that are at least in an advanced permitting process in the coming years as well,” he says Pavel Sovička, CEO of Panattoni for the Czech Republic and Slovakia.

The total area of ​​modern industrial premises for rent in the Czech Republic reached 11.70 million square meters at the turn of the year. After rapid growth in recent years, rental prices have stabilized. The vacancy rate increased slightly in the fourth quarter of 2023, but is still at a low level of 1.75%. Due to the limited possibilities of construction in the Czech Republic, there should not be a fundamental change in the next few years, which supports the decrease of construction by 30%.

“Currently, we observe a strong demand for production premises, especially from the automotive sector. We perceive great interest specifically in the segment focusing on the production of components for electric cars. On the contrary, there has still been no recovery in the e-commerce, logistics and distribution segment. But even so, some companies are looking for new premises in which they could consolidate and automate their warehouses.” complements Jiří Zita, Commercial Director, Panattoni.

Tenants want sustainable solutions

Panattoni consolidated its position as a leader in sustainable industrial construction with three projects with the highest level of assessment according to the strict international BREEAM New Construction certification. The new hall reached the Outstanding level Panattoni Park Silver. Another success of the Panattoni company was the robotic distribution center project Amazon v Panattoni Park Kojetín. In addition, the Chebská hall for the online auto parts retailer AUTODOC received a record score, making it currently the most sustainable industrial building in the world according to this prestigious certification. Panattoni also specializes in construction on the site of former brownfields. Construction in places with an industrial tradition makes a lot of sense from a sustainability point of view. In addition to removing old environmental burdens, such projects revitalize dead sites and utilize established infrastructure. In total, the developer has already realized or has under construction 494,000 square meters of space on former brownfields.

“The entire industrial development sector in the Czech Republic is very sustainable compared to the Central European region. Thanks to this, we are still an interesting location for investments by companies that have clearly defined their goals in this area. We hope that the Czech legislation will catch up with the deficit regarding community energy this year. We are looking forward to the fact that we could also involve our solar power plants in these projects and be even better neighbors in the locations where we operate. Just like we do in Western Europe,” comments Pavel Sovička.

The industry brings a chance for neglected regions

Regions that were previously neglected are experiencing major industrial development. In the Moravian-Silesian Region, for example, projects from the Fund for a Just Transformation are starting to be implemented. “We are also very active here, for example we are preparing an extensive brownfield zone near the former Barbora mine. I believe that continuing to modernize the industry will prevent the outflow of young people and raise the standard of living in this region,” he says Matej Hejma, Regional Development Director, Panattoni. “Thanks to the proximity of Germany and the friendliness of local governments, we see great potential in the Karlovy Vary region, or rather in the entire western borderland. After all, we are very active here and I am happy that we are helping the economic transformation of this territory, which has been neglected for a long time. The infrastructure that we have prepared for businesses together with the region and cities has also translated into numbers – our tenants are some of the largest employers in the entire region.” complements Klára Sobotková, Regional Development Director, Panattoni.

But we can also find an example of the development of a former industrial site near Prague. The company Panattoni is preparing an extensive Panattoni Business Park Kladno in the brownfield area after the former Poldi smelters. “The two planned halls will have a total area of ​​90,000 square meters, negotiations are currently underway with very interesting potential tenants. The park in an established industrial zone will offer space for sophisticated robotic solutions and new forms of automation. A big advantage is the nearby power plant, which can ensure an above-standard power input in the order of tens of MW. Also thanks to the planned high-speed railway, the time may soon come when people from Prague will go to work in Kladno and not the other way around.” concludes Jan Andrejco, Regional Development Director, Panattoni.

The article is in Czech

Tags: current trends outlook industrial development segment

-

PREV A drunk driver hit a traffic policeman. Ten minutes earlier he had driven away from another accident | Transport | News | Prague Gossip
NEXT The bison suffered significant losses. Who, on the other hand, stays and comes