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News Release

Bratislava

Slovak industrial and logistics market in record numbers by the end of 2014.


End of the year 2014 brought in the Slovak industrial and logistics market significantly elevated activity in signing new and extension of existing lease agreements. The total volume of closed transactions in Q4 2014 has reached a record level of 205,000 sqm which represents a two-fold increase of signed contracts volume over the same quarter last year (Q4 2013) and a four-fold rise compare to previous quarter (Q3 2014). Net take-up in Q4 represented ca. 41,000 sqm which is app. 23,000 sqm more than in Q4 2013.

This year, we saw app. 80,000 sqm of new industrial and logistic space delivered to the Slovak market and A class industrial and logistic stock currently stands at app. 1.3 mil. sqm. The clear leader in the supply of logistics space in Slovakia is developer Prologis with nearly 480,000 sqm of modern warehouse space followed by P3 Logistic Parks with logistic area of app. 151,000 sqm and top three closes Slovak developer HB Reavis with nearly 120,000 sqm.

DEMAND - extensions and renegotiations dominated the market during the whole year 2014

While in 2013 we saw app. 235,000 sqm of industrial and logistics space to be transacted, in 2014 market players were more active and by the end of the year, we recorded app. 333,000 sqm volume of concluded deals, which represents 42% year-to-year increase.

The vast majority of Q4 2014 transactions took place in Prologis logistics parks.  In December, Tesco renewed its lease agreements totaling ca. 126 000 square meters of industrial and logistic space within two Prologis parks in Senec and in Galanta. In addition we have seen renegotiations and extensions of various companies in several Prologis logistics parks in total amount of approximately 16,000 sqm. In Q4 2014, we have also recorded a renegotiation and contract´s renewal of existing tenants in CPI park in Lozorno (app. 13 000 sqm), Logistics Park Raca in Bratislava (app. 10,000 sqm) as well smaller tenants in Senec Logistics Center in Senec, all in greater Bratislava region.

New lease contracts were signed within all Slovak regions (West, Central, East). The largest contract of app. 16,000 sqm was signed in Košice (Eastern Slovakia) where developer Immorent commenced construction of new logistics hall (built-to-suit) for company Howe within the existing park Immopark Košice.

„We expect continuous strong competition as far as new and existing tenants are concerned, especially in the Bratislava region. The main factors remain to be headline rents, rent free periods and possibilities of reducing service charges. It is positive that for the last 12 months we have registered increasing demand in Zilina and Eastern Slovakia. Both these parts of Slovakia strengthen its position on the investor´s map due to the possibility of government subsidies," says Martin Stratov, Head of Industrial Agency JLL Slovakia," the latest example is Immopark Košice, which recently announced the signing of new lease contract with major investor," says Stratov.

INVESTMENTS into Slovak industrial and logistics properties in 2014

In terms of investment activity the Slovak industrial market in 2014 was behind its performance from previous years. After 77 mil. eur that was transacted in Slovak industrial and logistic properties in 2013, this year we saw only one investment transaction – developer Prologis acquired portfolio of 23 A class distribution centers in Poland, Czech Republic and Slovakia from Heitman. In Slovakia,  Prologis acquired Senec Distribution Center for app. 9 mil. eur.

SUPPLY – app. 45,000 sqm of new warehouse and logistics space

In the last quarter, three new warehouse and logistics halls were completed and delivered to the market in total area of approximately 45,000 sqm: new warehouse in DNV Logistics Park for company Schnellecke (16,000 sqm), new logistics space in Prologis Park Bratislava in total amount of 26,000 sqm, where almost 35% is preleased by logistic company Geis and the last addition represents new built-to-suit warehouse in Immopark Žilina for distribution company DPD ( 2,800 sqm). The last three months of 2014 brought 33% larger delivery of new space than it was at the same time last year.

VACANCY RATE
Vacancy rate currently stands at 7.7% level with vacant leasable area of app. 80,000 sqm in greater Bratislava region, app. 10,000 sqm in Western Slovakia, 7,500 sqm in Eastern Slovakia and 3,000 sqm in Central Slovakia.