Thursday, 12 November 2026
Industrial and logistics property markets in Central Europe are becoming increasingly differentiated, with vacancy rates, tenant demand and development activity varying between the Czech Republic, Poland and Slovakia. According to an analysis published by investment group ARETE on 12 November 2026, the ability of individual properties to maintain occupancy and generate dependable rental income will become more important in determining their investment value.
The assessment highlights a growing preference for buildings with established tenants, strong transport connections and modern technical specifications. Rather than expecting similar investment performance across entire national markets, investors are increasingly examining the characteristics of individual locations and properties.
Recent market figures illustrate this divergence. In the Czech Republic, industrial vacancy stood at 5.3% at the end of the third quarter, according to the Industrial Research Forum. Poland’s vacancy rate declined to 5.7% over the same period, based on data from the Polish Chamber of Commercial Real Estate, while Cushman & Wakefield reported an 8.12% vacancy rate in Slovakia.
The Czech market continues to show relatively limited availability in its main logistics locations. Vacancy in Prague and the Central Bohemian Region stood at 4.1% at the end of September, compared with 5.3% nationally. Gross leasing activity reached approximately 455,500 sq m during the quarter, although new leasing excluding renewals declined by 47% year-on-year to around 250,200 sq m.
Developers have also moderated construction activity. Approximately 938,500 sq m of industrial space was under development in the Czech Republic at the end of the third quarter, representing a 24% annual reduction. Only 149,300 sq m of new projects commenced during the quarter, while 29% of the overall development pipeline was being built without tenants secured in advance.
For investors, the combination of slower new leasing and reduced development activity makes the quality of existing properties particularly important. Well-connected facilities with established occupiers may be better positioned to retain tenants, while buildings in weaker locations could face longer periods without rental income.
Miroslav Barnáš, investment director for real estate at ARETE, believes the market is moving away from an environment in which developing a logistics building was sufficient to attract occupiers. He argues that location, the duration of tenancy agreements and the standard of the building will increasingly determine whether an investment can maintain its income and value.
Poland presents a different picture, with stronger leasing activity and falling vacancy. According to third-quarter market data published by PINK, approximately 1.79 million sq m of warehouse and industrial space was leased between July and September, while national vacancy declined from 6.6% in June to 5.7% in September. Around 1.67 million sq m was under construction at the end of the quarter.
The Polish figures suggest that occupier demand is absorbing available accommodation, although conditions remain uneven between regions. For property owners, this reinforces the importance of assessing local tenant demand rather than relying exclusively on national vacancy figures.
Slovakia remains more challenging. Cushman & Wakefield reported industrial vacancy of 8.12% in the third quarter, with approximately 398,000 sq m available for occupation. Gross leasing reached 97,000 sq m, while approximately 231,800 sq m was under construction. Greater availability has strengthened the negotiating position of occupiers and limited opportunities for landlords to increase rents.
These differences are relevant to investors operating across several Central European markets. A property in a location with limited available space and established occupier demand may offer a different financial outlook from a comparable building in a market where tenants have more alternatives.
Longer tenancy agreements can also contribute to investment stability by providing greater visibility over future income. Barnáš noted that the ARETE INDUSTRIAL fund’s portfolio had a weighted average remaining lease term of 6.99 years, according to the group’s published figures. Such arrangements can provide greater income predictability, although their financial value also depends on tenant creditworthiness, rental terms and property operating costs.
Financing conditions add another consideration. Higher borrowing costs can reduce investment returns and make purchasers more cautious about acquisition prices. Properties requiring significant expenditure or facing uncertain leasing prospects may be particularly exposed, while assets generating dependable income could remain attractive to investors seeking longer-term holdings.
The analysis does not anticipate a uniform decline in property values. Instead, differences between buildings are expected to become more pronounced, potentially creating acquisition opportunities where sellers adjust prices to reflect financing conditions and property-specific risks.
For Central European industrial property investors, the emerging distinction is therefore less about selecting one national market over another and more about identifying buildings capable of maintaining tenant demand, limiting future expenditure and generating sustainable income. As the Czech, Polish and Slovak markets develop at different speeds, these characteristics are likely to play a greater role in investment decisions.
