The total rental activity on this market within Slovakia reached the level of 264,000 m2 in the 2nd quarter of this year, which represents a year-on-year increase of 18%. A total of 143,000 m2 of these premises was the so-called take up (leased premises cleared of lease extensions in the tenant's current premises). At the same time, the share of lease renegotiations was at the level of 46%.

According to CBRE, the most area in m2 was rented in western Slovakia, outside the wider area of Bratislava (61%), followed by the wider area of Bratislava (35%). The rest was cut off by central Slovakia, which accounted for only 4% of the total rental activity. In terms of leased m2, the 3PL sector (providers of complex logistics services) led again, with a share of 61%. This was followed by the automotive industry (13%), electronics (13%), the retail sector (5%) and manufacturing (4%). The remaining segments represented 8% of the total leased area, while the energy and pharmaceutical segments fall under them.

Rental activity in Slovakia was, in the 2nd quarter of this year, significantly affected mainly by the extension of the contract in the 3PL sector in western Slovakia. It was an area of almost 100,000 m2.

"In the statistics for the 2nd quarter of 2023, the 3PL sector dominated again, which has been the dominant sector in Slovakia for a long time, but if we look at the current inquiries from tenants that are currently in the process, these are mainly manufacturing companies. We observe this trend across Europe. For example, in the neighboring Czech Republic, 3PL providers account for only 24% of rental activity. On the other hand, up to 63% was attributed to the manufacturing sector in the Czech Republic, while in our country it is still in the lower ranks," reveals Michal Cerulík, director of logistics and industrial real estate leasing at CBRE Slovakia.

The vacancy rate was falling

The total area of industrial and logistics real estate in A standard in Slovakia reached 3,721,954 m2 at the end of the 2nd quarter of the year. At the same time, the total vacancy rate of these premises decreased to the level of 2.72%. According to CBRE, the vacancy rate was again the lowest in the territory of western Slovakia (outside the wider Bratislava area), namely 0.69%. In the wider vicinity of Bratislava, it fell to the level of 2.35%. It also recorded a slight decrease in central Slovakia, where it fell to the level of 6.48%. In eastern Slovakia, the situation did not change much compared to the previous period, and vacant spaces accounted for 9.48%.

"Regarding the amount of rent, we saw an increase in the 2nd quarter of the year. The average rent here is currently €4.65/m2, which is 13% more year-on-year. In the Czech Republic, it is at the level of €6.15/m2, which represents a year-on-year increase of 11%," explains Michal Cerulík from CBRE. He adds that price growth was most noticeable in premium rentals, in both markets. In Slovakia, in this case, the amount of rents increased by 18% year-on-year (€5.30/m2), in the Czech Republic it is even up to 32% (€7.55/m2).

Several projects have been completed

In the 2nd quarter of 2023, 13,300 m2 of new premises were added to the market. Currently, almost another 256,000 m2 of premises are under construction, which are scheduled to be handed over this year. Another 105,000 m2 of industrial and logistics space is scheduled to be delivered in 2024. According to CBRE, almost half of it is already pre-leased today.

"It is interesting that these numbers are currently reaching new highs among our Czech neighbors. At the end of the 2nd quarter of 2023, a record 1,340,300 m2 of industrial and logistics space was under construction here, which represents an increase of almost 9% compared to the 1st quarter," concludes Michal Cerulík.