In the second quarter of this year, the rental activity of industrial and logistics real estate reached almost 180,000 m2, while take-up (leased premises cleaned of lease extensions in the tenant's current premises) rose to 110,000 m2. Compared to the last quarter, this is a really significant increase, the take-up itself increased by 108%. This follows from the quarterly report of the global real estate consulting company CBRE.
"Compared to 2023, there was a decrease in rental activity, while it should be noted that 2023 was a record year in several parameters. The market is currently performing from 2018 to 2021 and is bound to stabilize after two strong years. If we look at the distribution of contracts, the largest share, up to 40%, was newly concluded ones. They were followed by negotiated contracts (38%) and expansions (17%)."
In terms of the volume of rented premises, the wider area of Bratislava clearly led (45%), followed by the rest of western Slovakia (28%). Central Slovakia reached a 16% share, which is above average for this sub-region. 11% went to the East, which also represents an increase compared to the previous quarter.
In terms of the distribution of leased space, two sectors dominated - automotive (31%) and 3PL, i.e. the sector of third-party logistics service providers (27%). They were followed by the manufacturing sector (14%) and retail trade (13%), the rest was accounted for by other categories.
"In terms of newly leased premises in 2023, the production sector dominated at the expense of logistics, with a share of 54%. This is the migration of production companies closer to the end user (so-called nearshoring). In the first half of the year, the rental of production premises accounted for about a third, which indicates a still strong interest on the part of production companies."
If we look at Europe as a whole, the 3PL (30%), brick-and-mortar retail (25%) and manufacturing (22%) sectors account for the most space.
The average rent of industrial and logistics premises grew by 5% annually and currently reaches a value of approximately €4.90/m2 per month, but compared to the beginning of the year, the value is stable. Compared to the same period a year ago, the premium rent is almost 10% higher, so landlords ask for approximately €5.75 per m2 per month. The prime yield currently stands at 6.25%.
The vacancy rate rose to 3.39%. The highest is in central Slovakia, specifically 5.02% of industrial and logistics properties are vacant here. In western Slovakia, this number represents 3.34% and in eastern Slovakia, 3.21%. The lowest vacancy rate, only 3.06%, is in the wider area of Bratislava. "We assume that the vacancy rate will rise above 4% by the end of the year, mainly due to the completion of several projects whose construction was started without a pre-lease (so-called speculative) and they have not yet signed any tenant," adds Peter Slovák. The total vacancy rate is thus the highest since the end of 2022.
The overall vacancy rate is thus the highest since the end of 2022.
"However, this is certainly not a cause for concern, rather the opposite. The market and demand for real estate remains stable. The future outlook for the industry is positive, with almost 330,000 m² of new premises currently under construction with expected completion in 2024. So far 283,000 m² of new completed premises have been announced for 2025. It is important to add that the pre-leasing rate for projects with completion in 2024 already reaches 61%."
In its European survey, CBRE also found out what are the most common problems faced by users of logistics and industrial premises. According to the respondents, it is the growth of energy and labor costs, the lack of qualified employees and economic uncertainty. This is also reflected in the factors influencing the choice of location. According to tenants, the availability of labor and its price are among the top factors at the moment, which is mainly caused by the high rate of inflation. The factor of the property rental price ended up behind them.
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