Looking for new premises for your growing commercial real estate business? The right choice can have a significant impact on the efficiency, productivity and long-term sustainability of your business.
108 REAL ESTATE, a real estate consultancy celebrating its 15th anniversary of successful operations on the market, is marking another milestone with its expansion into Romania. Following its presence in Slovakia, Hungary, and India, 108 REAL ESTATE's expansion into Romania is a strategic move driven by the company's focus on the movement of developers, investors, and tenants in the industrial real estate sector, encompassing both manufacturing and logistics.
The demand among dozens of developer clients and investors from Europe is behind the expansion of our real estate consultancy firm, 108 REAL ESTATE, into India. The new office in the local metropolis of Delhi will provide comprehensive professional services for those attracted to entering the Indian real estate market. It's not just investors or developers from the Central and Eastern European region - we've decided to expand to the Asian continent based on the interest of clients from the USA, the United Kingdom, and countries in Western Europe. 108 REAL ESTATE operates in India thanks to the alliance with BNP Paribas Real Estate.
Numerous newly constructed storage facilities built without confirmed tenants have experienced extended vacancies lasting for six months or longer. This phenomenon, unheard of for years in the Czech Republic, has even led to a slight dip in average rents in some regions. After factoring in the lengthening rent-free periods, rising vacancy rate, and a growing trend towards subletting, everything points to the third quarter confirming a slowdown in momentum on the domestic industrial property market. This is the finding of an analysis conducted on indicative data by the Czech real estate and consulting company 108 REAL ESTATE. In the reporting period from July to September, gross demand totalled 158,867 sq m, with net demand at a mere 122,186 sq m. This record low quarterly result is the worst in at least four years.
Compared to the Czech Republic, it is four times larger in terms of area and approximately in terms of population. In recent months, it has set an example in many areas of the economy, including the construction, leasing and subsequent sale of industrial space. The supply of commercial real estate is also growing, thanks to massive investment in transport infrastructure and increasing purchasing power. This is most evident in the logistics and manufacturing segment, which has expanded by nearly 2.5 million sqm so far this year to a total of more than 31 million sqm.
What do the Karlovy Vary, South Bohemia, Liberec and Ústí nad Labem regions have in common from the perspective of industrial property developers? This is by no means the weakest that construction supply and building activity has been in a long time. Quite the opposite. An analysis by real estate consultancy 108 AGENCY indicates that these four regions – relative to their current capacities – are expected to see the largest increase in new warehouse and manufacturing space in the next few years. Altogether, the consultants have identified development projects in the Czech Republic with a floor area of more than 6.8 million m2, which are in various permit and preparation stages – environmental impact assessment, zoning/building permits, or initial building work. Three developers account for 54% of the planned projects: CTP, Panattoni and Prologis.
