Tuesday, 24 February 2026
Demand for industrial real estate in the Czech Republic remained strong in 2025, while the development pipeline continued to expand to record levels, according to Colliers.
Annual gross take-up reached nearly 2.1 million sqm, the third-highest result on record and 6.9 percent above the five-year average. At the same time, investor interest in the sector exceeded €800 million, surpassing the combined total of the previous three years.
“The Czech industrial market experienced a dramatic recovery in the second half of 2025. Since 2015, modern industrial warehouse space has grown by 133%,” said Josef Stanko, Director of Market Research at Colliers. He noted that nearshoring trends and increased demand from Asia-Pacific occupiers have supported market growth.
New supply totalled 229,000 sqm in the fourth quarter, bringing full-year completions to 813,500 sqm. The country’s total modern industrial stock approached 13.3 million sqm, representing year-on-year growth of 7.7 percent. However, the development pipeline remains substantial, with more than 1.6 million sqm currently under construction.
The largest share of development activity is located in the Karlovy Vary Region (21.3 percent), followed by Prague and the Central Bohemian Region (19.2 percent) and the Ústí Region (18.6 percent). The elevated share in Karlovy Vary is largely driven by the construction of a major automated warehouse project in Cheb exceeding 200,000 sqm.
Beyond projects under construction, approximately 2.8 million sqm has secured permitting and is ready to start, while a further 2.5 million sqm is in earlier planning stages awaiting zoning or building approvals.
The vacancy rate increased to 4.9 percent in the fourth quarter of 2025, equivalent to around 655,400 sqm and up 118 basis points year-on-year. In addition, more than 679,000 sqm of speculative space is currently under development without secured tenants, much of it in Prague and the Central Bohemian Region. According to Colliers, much of this space is near completion and could be delivered quickly once pre-leased.
Leasing activity strengthened notably in the second half of the year. Fourth-quarter gross demand rose 47 percent year-on-year to nearly 642,000 sqm, with net take-up accounting for 58 percent of the volume. While the first half of 2025 was driven largely by renegotiations among logistics and transport occupiers, the second half saw manufacturing companies — particularly from the automotive and FMCG sectors — account for 46 percent of demand. Logistics and transport represented 29 percent.
Prime industrial rents remained stable for the sixth consecutive quarter at €7.00–7.50 per sqm per month. Mezzanine office rents typically range between €9.50 and €12.50 per sqm per month, while service charges are generally €0.75–1.00 per sqm per month.
Stanko noted that tenants are increasingly in a stronger negotiating position, which is reflected in more incentive packages from landlords. In some markets with higher recent development activity, including the Moravian-Silesian Region, a modest oversupply is contributing to gradual rent adjustments.
