Compared to the previous quarter, activity in this quarter was higher. The gross take up on the market (including also prolongations of existing tenants’ lease contracts) was recorded at a level of 52, 640 sq m, which is about 1/3rd more than the 2ndQ.
"It is a positive signal that almost 21,000 sq m of new lease contracts were closed on the market in Q3 2014 which proves that tenants are able to sign new contracts and absorb vacant space. Low vacancy rate usually motivate development companies to start construction and we do expect that the level of new construction will increase again during the following quarters in order to satisfy the current demand on the market,” says Martin Hudák, Consultant of the Industrial department at Cushman & Wakefield Slovakia.
The gross take up on the market (including also prolongations of existing tenants’ lease contracts) was recorded at a level of 52, 640 sq m, which is significantly more compared to the last two quarters. Net take-up, meaning the leasing-up of space that was previously vacant was at a level of 21,000 sq m which is approximately the same number as the previous quarter. This net take up is a positive sign, because developers are leasing vacant space to new tenants or to existing tenants that are expanding.
Only one development, in Senec, was completed where Prologis completed an industrial/production hall of approx. 14,000 sq m which was a build to suit construction.
The vacancy rate increased from 4,1 % to 4,6 % in Q3 2014. Despite the fact that demand was active in Q3/2014, the majority of the requirements were satisfied by space that was either newly constructed or in space where tenants recently moved out and hence before the vacant space was actively marketed. Nevertheless, the vacancy figure remains relatively low and should encourage further development activity as the economy continues to show signs of robustness.
These trends were confirmed by statistical analyses prepared by Cushman & Wakefield.