Thursday, 29 October 2026
Slovakia’s industrial and logistics property market is experiencing growing competition for tenants, with rising vacancy in certain locations putting pressure on rental expectations. Established motorway corridors continue to attract most development and occupier activity, while workforce availability, transport costs and changing manufacturing requirements are influencing property decisions. In an interview with CIJ.World, Tomáš Ostatník, Real Estate Executive at HOLLAND AND COMPANY, discusses rental competition around Senec, investment opportunities across Slovakia and the importance of understanding occupiers’ operational needs.
CIJ.World: How has Slovakia’s industrial property market evolved during your career, and what do developers and investors still misunderstand about occupiers’ needs?
Tomáš Ostatník: Over the past 20 years, Slovakia’s industrial and logistics market has developed considerably. Initially, activity was concentrated around major logistics hubs such as Senec, where Austrian, American and Australian investors recognised the location’s potential. Companies such as Karimpol (now P3), Prologis and Goodman (now Marq Logistics) helped establish the area as a logistics centre serving Bratislava and the wider Slovak market. Development subsequently expanded along the country’s motorway network, supported by economic growth, increasing consumption and manufacturing activity. Much of Slovakia’s industrial production is exported, making access to European markets particularly important.
One of the biggest changes has been the size of industrial buildings. Warehouses have become larger as manufacturing operations have expanded and e-commerce has increased demand for distribution space. There has also been considerable discussion about urban logistics in Bratislava and other regional cities, although this segment remains relatively underdeveloped, particularly among institutional developers. Smaller local developers may be better positioned to respond to this demand.
The current market is becoming increasingly competitive. Vacancy has increased in certain locations, and landlords are working harder to attract tenants. Around Senec, we are seeing particularly strong rental competition, with some owners offering substantial discounts to secure occupancy. In my view, rental expectations in parts of the market are moving towards levels seen many years ago. Owners of vacant buildings still face operating and service costs, creating pressure to find tenants. This competition is particularly noticeable around Senec, while conditions in other regions are generally less intense.
CIJ.World: What are the most common mistakes companies make when leasing or purchasing industrial properties, and how can experienced advisers help avoid them?
Tomáš Ostatník: The most important consideration is understanding where a company’s customers are located and how goods move through its distribution network. For logistics operators, motorway accessibility is essential because additional travel along regional roads increases transport costs and delivery times. A lower rental price may offer little advantage if the location makes daily operations less efficient.
Manufacturing companies must also consider workforce availability. Slovakia has experienced increasing pressure on its domestic labor supply, with businesses becoming more dependent on foreign employees. Recruitment patterns have changed, with workers arriving from countries including Vietnam and India. Many companies rely on employment agencies to recruit these workers and arrange accommodation, often in private houses or apartments. This has created additional demand for suitable housing near industrial locations.
Finding the right industrial property therefore involves more than evaluating the building and its rental cost. Companies must consider transport efficiency, labour availability and accommodation. These operating expenses can have a much greater financial impact than the property itself, making a thorough assessment of the location essential.
CIJ.World: Which locations and industrial sectors in Slovakia offer the strongest investment and development opportunities over the next five years?
Tomáš Ostatník: I believe Slovakia’s established industrial corridors will remain the strongest locations for investment and development. Bratislava continues to attract demand, while the D2 motorway towards Malacky, the D1 corridor through Trnava and Žilina, the R1 towards Nitra and the R7 towards Dunajská Streda provide access to important manufacturing and logistics centres. These locations benefit from existing infrastructure, industrial activity and connections to western European markets.
Much of Slovakia’s manufacturing industry is concentrated along these routes. Volkswagen near Bratislava, Kia near Žilina, Stellantis in Trnava and Jaguar Land Rover in Nitra demonstrate the importance of transport accessibility for major manufacturers and their suppliers. These regions also contain substantial existing industrial stock. Even when buildings become vacant, they remain attractive because occupiers can move into established locations without waiting for new developments. I expect these corridors to remain dominant over the next five years.
Eastern Slovakia offers different opportunities. Volvo’s manufacturing investment near Košice could generate additional industrial demand, depending on the development of its supplier network. There may also be opportunities associated with workers arriving from Ukraine, particularly in cities where people can live and work while remaining relatively close to their home country. However, the region’s future industrial growth will depend on actual investment, infrastructure and employment opportunities.
CIJ.World: What makes an industrial development site genuinely attractive, and what hidden risks should investors consider before committing?
Tomáš Ostatník: Industrial development requires substantial land areas, with modern warehouse projects often involving buildings of at least 5,000 sqm. Investors must carry out legal, technical and environmental due diligence before acquiring a site. Potential risks include planned infrastructure projects, unsuitable ground conditions, high groundwater levels and flooding. These issues can usually be identified through proper investigation, but they must be considered before committing capital.
However, one of the biggest risks is developing industrial property where there is insufficient occupier demand. We regularly evaluate land that is technically suitable and attractively priced but located in areas where companies have little reason to establish operations. A site may look excellent on paper, yet its commercial prospects can be limited by poor accessibility. If a property is 25 or 30 minutes from the nearest motorway, I would generally consider it a secondary location because the additional journey affects every delivery entering or leaving the facility.
Transport and employment costs are often much greater than the cost of the property itself. Companies also need locations where employees can live and access services outside working hours. A developer might acquire inexpensive land, but that saving becomes irrelevant if occupiers face higher operating costs or difficulties recruiting workers. The essential question is not simply whether the land can be developed, but whether businesses will want to operate there.
CIJ.World: How is industrial real estate advisory changing, and what advantages can independent specialists offer compared with international consultancies?
Tomáš Ostatník: The main advantage of independent advisory is flexibility and direct communication. When clients contact us, they deal with the people who will actually manage their assignment. We can respond quickly, adapt to their requirements and remain personally involved throughout the transaction. There is no need for requests to pass through several departments before someone takes responsibility.
Larger consultancies have extensive resources, but the person presenting an initial proposal may not always be the person delivering the project. Independent firms can offer greater continuity and are often more willing to dedicate time to smaller or more complicated assignments that may not meet the profitability requirements of larger organizations. We can also structure our services differently depending on the needs of property owners, developers and occupiers.
Ultimately, clients want an adviser who understands their business, responds promptly and takes responsibility for achieving results. That is where I believe independent specialists can provide real value. Despite the challenges facing the industrial property market today, I remain optimistic. I believe the best times are still ahead of us.
Source: © CIJ.World
