Savills confirms the potential of industrial real estate development in regional cities

The industrial property market in the Czech Republic continues to grow and even offers the possibility for speculative develoThe industrial property market continues to grow and even offers the possibility for speculative development. Local economic growth, a well-qualified workforce, strategic locations of projects, good infrastructure, stable demand and a shortage of appropriate accommodation on offer are the main factors which reflect the current state of the regional industrial real estate market.

The speculative development of high-quality industrial areas is no longer limited to large cities, but is migrating to smaller regional cities as well. Construction of small modular industrial and commercial units (from 250 sq m to 800 sq m) with excellent transport accessibility, developed by a local investor, are becoming a new and attractive trend. This trend positively supports the development of business, economic activity and competitiveness in the regions.

Technopark Znojmo is a good example of such a project, being developed by Autodružstvo Znojmo, a significant player in the South Moravian region that is planning other strategic projects around the city of Znojmo. According to František Molík, chairman of Autodružstvo Znojmo: "The project is divided into two phases, each phase offering 8 flexible and modular units from 250 sq m ideally suited for storage, light manufacturing, retail, showrooms and other associated uses. The completion of the first phase is scheduled for June this year and the second phase by the end of 2018. The entire site will comprise over 6,000 sq m of industrial and commercial space, including support facilities and offices. We have just completed the earthworks and are starting the infrastructure and foundations. The concrete frame will be visible at the end of January."

Jaroslav Kaizr, Head of Leasing Agency, Savills Czech and Slovak Republics, says: "The Znojmo Technopark is an ideal location for companies, which prefer smaller regional cities for their expansion, knowing, that from a strategic point of view they will get the same, dare I say even better price/performance ratio than in large city locations. That´s not only in terms of the price of the space, but also in terms of the labour market situation. For many business entities already in the region, this project presents the opportunity to transfer from older to the new modern space to facilitate more efficient business operations."