Stock and Supply I Key Market Characteristics
By the end of Q1 2023, the total modern industrial and logistics stock in Slovakia stood at almost 3.95 mil. sqm.
Western Slovakia (including Greater Bratislava) counts 83% of total stock. Then, ca. 9% of the recorded stock is in Central Slovakia and almost 8% in Eastern Slovakia.
There is almost 200 thousand sqm of new logistic space currently under construction. Approximately 72% out of total under-construction space is already pre-leased.
The biggest developer in Slovakia is CTP with dominant 17.4% of the market share. The TOP 5 further includes P3 with 12.0% share on the second place, Prologis with 11.6% on the third place, followed by CGL with 8.8% and VGP with 6.5%. The rest of developers own less than 5% of the real estate market share.
Low vacancy rate and lack of speculative development together with continuous raises in interest rates support further increase of headline rents across the country. Inflation rate which is fully or partially reflected in rent indexation remains positive factor contributing to this movement.
By the end of Q1 2023, the average vacancy rate was at 4.33%. Majority of vacant industrial space within existing logistic parks is located in Greater Bratislava and Western Slovakia.
Although we see a slight drop in the total occupier’s demand across the country, the expansion of local production, warehousing and logistics capacities remain the main demand drivers today. A turbulent market environment and general fear of recession cause delays in decision-making and arouse concerns across all industries.
General short-term and mid-term forecasts and prospects in terms of industrial and logistics real estate leasing remain positive, however we see a rising level of cautiousness and volatility.
In Q1 2023, we have recorded gross take-up at the level of almost 135,140 m2, which represents a 32% decrease when compared to Q4 2022. Gross take-up in the last rolling 12 months was at the level of 565,880 m2.
In last 12 months, 50% of the gross take-up was registered in Greater Bratislava, followed by Western Slovakia with almost 38% share, Central Slovakia with almost 8% and Eastern Slovakia with share over 4%.