CZECH BUSINESS AND TRADE
The Brno Industrial Market is Experiencing a Relatively Great Boom The Brno industrial market is experiencing a relatively great boom. The new industrial development projects are a continuation of the recent boom in administrative building construction in Brno. The projects are prepared by important international ﬁrms as well as local developer groups. Important clients have chosen Brno as an integral part of regional expansion. A characteristic feature of the supply of commercial industrial property in the environs of the Czech Republic´s second largest city is the long-term dominance of the CTP developer company. The surface area of its parks in Brno is more than 780 000 sq. m. VGP, the second largest developer of national significance, controls only less than 32 000 sq. m. According to the 108 AGENCY real estate consulting company, however, a change awaits Brno as regards industrial construction, in connection with the notiﬁed arrival of important developers led by Prologis
and Accolade. “Strengthening competition between the developer groups will create a highly competitive environment, which will bring beneﬁt to both the existing and the new renters in the form of better leasing conditions,” says Marek Sýkora, 108 AGENCY´s consultant, specialising in the South Moravia Region. The American developer company, Prologis, is preparing a completely new logistic compound in the locality close to the D5 motorway near Syrovice. Its plans provide for the construction of three halls in the locality on a surface area of approximately 90 000 sq. m. Another logistic zone could arise in the vicinity of Brno Airport in connection with last year´s entry of the important Czech developer group, Accolade, into the Letiště Brno (Brno Airport) Company. Local developers, too, are showing interest in building new industrial parks. An example is the project of a new park in Rosice, where the construction of halls covering an area of up to 9 000 sq. m is to begin next year at the latest. The exclu-
sive representation of this project has been entrusted to 108 AGENCY. The new transactions indicate the growing interest of clients in Brno and its environs. For example, Tamda Foods is renting another unit in CTPark Brno, covering a surface area of 1 723 sq. m, in continuation of its expansion started by its announced construction of a complete distribution centre in Prague´s Hostivice district to cover an area of 20 000 sq. m. Other interesting transactions are the renting of space for Bravo Europa, which will be using an additional 6 700 sq. m in the M7 Ivančice Industrial Park, and the renting of another 1 800 sq. m of surface by Rental PRO in the Pozemstav Park. In year-on-year comparison, before the end of the ﬁrst quarter of 2018, 108 AGENCY had already mediated 80 % of the volume of transactions mediated in the whole of 2017. Those transactions included, for example, the renting of 3 000 sq. m of surface area for the important DSV logistic company and 3 524 more sq. m of distribution space for the Rohlík.cz company.