DC7B hall in the P3 Bratislava D2 industrial park (source: Courtesy of P3 Logistics Parks)
Despite soaring energy prices and runaway inflation in Slovakia last year, the country’s industrial and logistics sector had an exceptionally strong 2022.
Vacancy rates in the sector were at a record low, while square metres delivered hit a record high.
Largest developers: Logistics and industrial real estate
CTP Invest SK
VGP
Prologis
P3 Logistic Parks
CGL
The ranking is based on points gained from the industrial and logistics area of the developer’s projects in Slovakia. Total number of points = 2*(area approved in 2022) + 1*(gross lettable area + area under construction at the end of 2022) + 0.3*(area of development opportunity)
Robust demand from tenants was reflected in leasing activity which crossed the 700,000 square metre mark – a 31-percent year-on-year increase. Meanwhile, the area of new industrial and logistics halls delivered last year came to almost 400,000 square metres, representing an annual rise of 90 percent, according to a report by A&T Industrial & Logistics CBRE.
The vacancy rate fell to 2.6 percent in the second quarter of 2022, having been narrowly below 4 percent during the year.
“The low vacancy rate, high demand from tenants, and the rising price of construction costs also radically affected the development of rents,” CBRE’s Real Estate Market Outlook 2023 for Slovakia said. During the last quarter of 2022, prime rental rates reached €4.90 per square metre, up 26 percent on the previous year.
Due to a lack of available space and the large area of new halls under construction, CBRE expects leased square metres in 2023 to come close to 2022 figures. Tenants in the automotive, 3PL (third-party logistics), retail and e-commerce sectors are expected to continue to dominate. The vacancy rate is forecast to remain below 5 percent.
