Czech industrial market maintains stability in first quarter of 2025

The Czech Republic’s industrial real estate market remained stable in the first quarter of 2025, with the national vacancy rate holding steady at 3.1%, according to data from the Industrial Research Forum. The total stock of modern industrial space reached 12.44 million square meters, and demand continued to be strong, with gross take-up totaling 511,600 square meters.

New construction activity increased, with 243,000 square meters of space started in Q1—marking the highest quarterly volume since the third quarter of 2023. At the end of March, a total of 1.07 million square meters was under active development, a rise of 8% compared to the previous quarter and 20% year-on-year. Around 26% of these projects are located in Prague and Central Bohemia, while the Karlovy Vary region accounts for another 25%.

All newly completed projects—totaling approximately 134,900 square meters—were fully pre-leased. Notable completions included a 57,200 square meter building in Panattoni Park Ostrov - North for ZF, a 29,500 square meter extension of Garbe Park in České Budějovice for NOBO AUTOMOTIVE, and a 27,000 square meter facility in Panattoni Park Ostrov South for WITTE Automotive.

The share of speculative construction fell to 28%, while only 14% of new construction commenced in Q1 was built without signed tenants. An additional 500,000 square meters remains incomplete at the shell-and-core stage, pending future leasing.

Gross take-up rose significantly year-on-year—by 152%—and by 18% compared to the previous quarter. Renegotiated leases made up 62% of the total take-up, including a major 147,600 square meter lease renewal by a 3PL provider in Prologis Park Prague-Jirny. Net take-up, excluding renewals, reached 193,600 square meters, an 11% quarterly decrease but a 36% increase compared to the same period in 2024.

Among new transactions, the largest was a 40,000 square meter pre-lease in Industrial Park Nymburk by Linde Wiemann. Other notable deals included a 17,700 square meter pre-lease by e-commerce company Rohlík CZ in CTPark Brno Líšeň and a 17,200 square meter lease in CTPark Prague East by an undisclosed tenant.

Rental rates remained stable across the country. Prime rents in Prague held at €7.00–7.50 per square meter per month. In other prime regional locations, rents ranged from €5.70 to €6.60. Mezzanine office space commanded rents of €9.50–€12.50, with service charges averaging between €0.75 and €1.00 per square meter per month.

According to James Fitzgerald, Regional Head of Industrial Agency at iO Partners, the Czech market continues to demonstrate resilience and growth potential, supported by solid fundamentals built over the past decade.

Source: The Industrial Research Forum