3Things: Notino, industrial vacancy and LG’s battery factory

Czech industrial vacancy dropped to 3% in Q2 2021 thanks in part to the below-average pace of new construction and high demand. In an around Prague, vacancy is virtually non-existent at just 1.4%. The Industrial Research Forum reports that most of the construction starts during the second quarter were located in the Moravian-Silesian region and that new quarterly demand reached 387,700 sqm. In all, 113,200 sqm of new warehouse space came online, bringing the total stock in the country to 9.28 million sqm. The largest unit was a 19,000 sqm hall in the Ostrava Airport Multimodal Park, which was occupied immediately by Continental Barum. C.S.Cargo filled the second largest unit upon its completion, the 17,500 sqm shed located in the CSPP Planá Nad Lužnicí. Gross take-up in Q1 came to 529,300 sqm of which the share of renegotiations was 27%. Prime rents are €5/sqm nationwide and €5.20/sqm in the Greater Prague Area.

The Czech-based retailer Notino opened the country’s largest perfume and cosmetics store in central Brno. Originally a purely online play, Notino has opened six stores in the Czech Republic, including the new 850 sqm unit in Brno on Česká street. Among the stores attractions are a new “virtual mirror” in which customers can see how they’d look with different shades of lipstick or with different colored air. Notino’s turnover grew 42% last year to CZK 14.5 billion. Of the 24 countries it now operates in, the company’s biggest market is Poland.

The Czech state continues to believe it can attract investors to build one or two car battery factories in the country. While any such declarations need to be taken with a grain of salt during an election year, the Minister of Industry Karel Havlíček claims that in addition to ongoing negotiations with Volkswagen, his team is hoping to convince the South Korean firm LG to build a second factory. The electricity giant ČEZ is a key player in these deals, according to CEO Daniel Beneš. “We see our role as a developer who provides land and supplies energy,” he told Hospodářské noviny. He said there are six potential sites where the new factories could be built, though the most likely was in Pruneřov near Chomutov. Construction of the new factory would cost an estimated CZK 52 billion but the result would be more than 2,300 new jobs.

 

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