Even though 2021 was marked by high instability in many sectors, the supply chain in particular, P3 has emerged from the past year stronger than ever. During the last 12 months, the property developer leased out 430,000 m2 in Czech Republic, which corresponds to a 45% year-over-year increase. P3 registered a record-high number of concluded transactions, where the developer, owners, and manager of industrial properties entered into 1,4 agreements per week on average.
"Last year, P3 celebrated 20 years of being in business. I'm happy to report that P3's Czech team is able to pay attention to the current needs of tenants and, at the same time, focus on the future development of our parks. Thanks to that, last year was very successful, providing us with conditions on which we will build in the upcoming period," said Tomáš Míček, P3 Country Head Czech Republic, in reviewing last year's results.
Longer Average Lease Term
In 2021, P3 signed new lease contracts for 430,000 m2, nearly a third of the company's Czech portfolio. In the preceding year, the company also recorded excellent results, having leased 295,000 m2. That translates into a whopping 45% year-over-year increase. In total, P3's Lease Team signed a record-high 76 lease agreements, which corresponds to approximately 1.5 contracts signed every week.
"Among other factors, 2021 demonstrated the importance of a flexible response. On the one hand, we witnessed a sharp growth of e-commerce. On the other hand, we perceived, together with our tenants, a decline in production in the automotive industry and disruptions in the supply chain. I'm very happy that the diversity of our portfolio as well as other factors allowed us to offer all of our tenants a suitable solution based on their current needs," says Jan Andrus, P3 Head of Leasing for the Czech Republic.
The largest transaction concluded last year was prolongation of the lease agreement with FM Česká at P3 Lovosice and expansion of the leased area to 60,000 m2. Overall, the length of the average lease term has increased. P3 parks welcomed new tenants, such as Billa, Quick Service Logistics, GGT CZ, Škoda Auto, Saint Gobain, and Ecologistics, as new business cases accounted for approximately one quarter of all of the new lease agreements entered into last year.
Worth noting is that not all lease contracts concerned warehouse or industrial space only. The P3 portfolio includes office space, and in 2021, the company leased 3,800 m2 of office space under agreements that involved no warehouse space. Apart from a high quality standard, the advantages of P3's office facilities include easy accessibility and ample parking space.
P3 Development Scores Points in Prague and Ostrava
Like other sectors, the construction industry faced difficulties in 2021. Nonetheless, the rising prices of materials and worker shortages in the construction sector did not prevent P3 from continuing the construction of industrial parks.
Two new warehouses are being erected near Prague, and preparations are under way for the construction of an additional three in Ostrava. "A new warehouse with a size of 7,500 m2 will be built in the eastern part of Prague at P3 Prague D11, and another facility spanning over 16,500 m2 is under construction in Stochov at P3 Prague D6. The brownfield in Vítkovice will see the construction of a warehouse sized 28,500 m2 as well as two smaller units with a floor area of 1,500 m2 and 2,200 m2," reveals Aleš Zacha, P3's new Head of Development. P3 has another 250,000 m2 ready for built-to-suit development at P3 Ostrava Central, P3 Pilsen Myslinka, and P3 Lovosice.
All of P3's new buildings carry a BREEAM Very Good certificate or higher. Tenants can rest assured that their new premises have been built to ensure environmental protection and, at the same time, to offer a productive working environment. BREEAM certification guarantees that certified facilities have been duly assessed and deemed sustainable by an internationally recognized authority. In addition, P3 pursues the development of its parks in line with its recently unveiled Green Concept that has been created in partnership with Studio Flera.
Prosperous Year and 20th Anniversary in Business
As part of attending the Expo Real 2021 international trade show, P3 celebrated 20 years of conducting business in the industrial development sector. Established at the turn of the millennium in Prague, P3 has grown from its humble beginnings to become one of the five most important players on the European industrial real estate market. Achievements in a number of sectorial contests were another reason for celebration. In 2021, P3 was named the strongest brand in Southern Europe and received the Strongest Brand Growth in Europe award in all real estate segments from the EUROPEAN REAL ESTATE BRAND INSTITUTE. In the Czech Republic, P3 won the CIJ Award in the Best Upcoming Development segment for its visionary design of P3 Ostrava Central. In addition, the project advanced to the short list of Lemur sectorial PR awards in the B2B segment.