"The Czech industrial market experienced a dramatic recovery in the second half of 2025. Since 2015, modern industrial warehouse space has grown by 133%," explains Josef Stanko, Director of Market Research at Colliers. According to him, one of the reasons for such strong growth is the fact that the Czech Republic has become the focus of a broader regional trend of nearshoring, with increased demand for space from companies in the Asia-Pacific (APAC) region, for example.

Industrial space exceeded 13 million square meters

New supply of industrial real estate space reached 229,000 m², bringing the total area of completed projects for the entire year to 813,500 m². The total area of overall construction across sectors approached almost 13.3 million m², representing a year-on-year increase of 7.7%.

However, the completion rate does not reflect the large amount of space under construction that will be available in the near future, which now amounts to more than 1.6 million m².

Most construction is concentrated in the Karlovy Vary Region (21.3%), followed by Prague and the Central Bohemian Region (19.2%) and the Ústí Region (18.6%). The high volume in the Karlovy Vary Region, which is otherwise a secondary location, was caused by the construction of a large, automated warehouse project in Cheb with an area of over 200,000 m².

In addition to space under construction, there are also a significant number of projects in various stages of approval. Nearly 2.8 million m² has been approved and is ready for construction, and another 2.5 million m² of potential projects are awaiting zoning decisions or building permits.

Vacancy rate of almost 5%

The vacancy rate rose to 4.9% in the fourth quarter of 2025, representing almost 655,400 m² and a year-on-year increase of 118 basis points. However, there is much more vacant space available on the Czech market, as more than 41% of modern industrial space, or 679,000 m², is being built speculatively, i.e., without a tenant. Most of it is located in Prague and the Central Bohemian Region (230,200 m²), followed by the Ústí Region with 166,800 m² and the South Moravian Region with 84,100 m². "Although these are unfinished spaces, they have been preserved in a state close to completion so that they can take on their final form with their future tenant. They could be available in a matter of weeks," comments Josef Stanko.

Gross realized demand third highest in history

"While the first half of the year was subdued in terms of deals closed, with most contracts coming from renegotiations, demand rose sharply in the second half, pushing total annual gross demand to a three-year high," notes Josef Stanko. Gross transaction volume in the fourth quarter of 2025 was 47% higher year-on-year, reaching almost 642,000 m2, of which 58% was net realized demand. Gross realized demand in the fourth quarter of 2025 was the highest since the second quarter of 2022.

Annual gross take-up in 2025 reached almost 2.1 million m², which is 6.9% more than the five-year average and the third highest annual result ever.

The first half of the year was dominated by renegotiations by large logistics and transport companies. However, in the second half, the annual tenant mix shifted towards manufacturing companies (primarily from the automotive and FMCG sectors) accounting for 46%. Logistics and transport accounted for 29%.

Stable rents

The highest achievable rents on the Czech industrial market remained stable at EUR 7.00–7.50/month/m² for the sixth quarter in a row. Rents for mezzanine office space range between EUR 9.50 and 12.50/m²/month. Service charges are typically around EUR 0.75–1.00/m²/month.

"We are increasingly seeing tenants in a stronger negotiating position, which is reflected in more generous incentives offered by landlords in all regions. In addition, in areas that have seen greater development in recent years, such as the Moravian-Silesian Region, there is a slight oversupply, leading to a slow correction in rent levels," says Josef Stanko.