Tuesday, 11 November 2025
Rising vacancy rates, cautious occupiers and a slowdown in automotive production have reshaped Slovakia’s industrial and logistics market. Speculative projects completed in 2025 added significant new supply, just as demand from Germany weakened and e-commerce occupiers became more selective.
To explore how developers and investors are adjusting, CIJ EUROPE sat down with Tomáš Ostatník, Real Estate Executive at Holland & Company, a commercial leasing and development specialist active across Slovakia.
After an unprecedented wave of new industrial completions, Slovakia’s logistics property market has entered a new phase — one defined less by rapid expansion and more by strategic consolidation and technical efficiency. The surge in supply collided with a shift in tenant behaviour and weaker leasing activity from automotive suppliers, forcing both developers and occupiers to rethink how space is planned and used.
According to Ostatník, the market continues to function, but the conversation has changed. Instead of competing for any available space, tenants are now focused on specifications that support automation, lower operating costs and meet ESG requirements. “Demand hasn’t stopped,” he says. “But tenants now focus on quality — clear height, automation readiness, ESG — not just square meters.”
A recent relocation of a major e-commerce company from GLP Senec to Mountpark Bratislava illustrates this shift. The decision was driven not by rent levels, but by technical parameters: ceiling height, layout, and the ability to integrate automation systems.
The investment market is undergoing a similar transformation. Institutional demand is high, but buyers want long-term income security. The sale-and-leaseback transaction involving DSV in Senec demonstrated that assets leased for ten years or more remain highly competitive. Ostatník notes that more logistics and production companies are exploring built-to-own and then sell models: developing a tailored facility that fits their needs, then selling the property to an investor once it is operational. “This allows tenants to monetize development gains instead of simply committing to a long lease with a third-party developer,” he explains.
Geography is also evolving. Historically, development concentrated on the Bratislava–Trnava corridor. Now, attention is shifting eastward, driven by new investments connected to the Volvo automotive plant and, longer term, the anticipated reconstruction of Ukraine. While the western region will stay strong due to established logistics routes, Ostatník says the east “is where the new opportunities are forming.”
At the same time, tenant behaviour reflects a more cautious economic environment. Rather than moving into new facilities, many occupiers are renegotiating existing leases or seeking small expansions. Higher vacancy rates mean developers with speculatively completed stock are more willing to offer incentives to attract tenants, while build-to-suit landlords are maintaining firmer positions.
Sustainability and efficiency have become universal themes in negotiations. Tenants expect modern buildings to be energy-efficient, solar-ready and adaptable to advanced automation. Consolidation is accelerating, with companies looking to bring multiple smaller units into one larger, more efficient facility to reduce energy costs and transportation complexity.
Ostatník believes that the stabilization seen at the end of 2025 is healthy for market maturity. “Well-located assets will remain competitive, but the next wave will come from new regions and new occupier profiles,” he says. Urban-adjacent last-mile logistics and strategically positioned projects in eastern Slovakia are expected to generate the next phase of investment and leasing activity.
Slovakia’s industrial and logistics sector is no longer driven by the speed of development, but by performance. The focus has shifted toward flexibility, efficiency, ESG compliance and the ability to adapt to new supply chain models. In a maturing market, one constant remains: strong tenants and good locations always find capital.
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