Industrial property market in Slovakia shows signs of cooling as vacancy rates rise

The Slovak industrial real estate market is entering a period of cooling after several years of strong performance. According to the latest figures from the Industrial Research Forum, demand slowed notably in early 2025, with rising vacancy rates and more cautious developer activity shaping the landscape.

Currently, Slovakia’s stock of modern industrial premises for lease totals 4.55 million square meters. Despite continued construction, it’s clear that developers are more risk-averse, prioritizing projects with secured pre-leases rather than speculative builds. In the first quarter of this year, 39,500 square meters were delivered to the market across two buildings, with 92% already pre-let at completion.

From a logistics operator’s perspective, this shift isn’t surprising. “We’re seeing clients, particularly in the automotive sector, pressing pause on expansion plans as they navigate ongoing economic uncertainty,” explains Patrik Janščo, Head of Industrial Agency at Cushman & Wakefield Slovakia. “It’s a wait-and-see environment. Many are focused on optimizing existing operations rather than committing to new space.”

The largest completion in Q1 2025 was Panattoni Park Bratislava North II, adding 23,300 square meters near the capital. Sihot’s Park in Trenčín followed with 16,200 square meters. Meanwhile, construction remains robust, with 321,200 square meters under development—a year-on-year increase. However, 53% of this pipeline, or 214,900 square meters, is already pre-leased, reflecting developers’ shift away from speculative building. The dominant tenants securing future space are 3PL providers, automotive firms, and e-commerce players.

That said, new starts are slowing. Only three buildings totaling 63,700 square meters broke ground in the first quarter. Market sentiment indicates that developers will continue to limit speculative supply as demand softens. “We expect the overall volume of new construction to decline over the year,” the Forum notes.

Gross take-up, including renewals, totaled 65,900 square meters in Q1, marking declines both year-on-year and quarter-on-quarter. Renegotiations accounted for 40% of this figure, or 25,400 square meters, suggesting many occupiers are opting to stay put rather than relocate. Net demand came in at 37,400 square meters, with 28,300 square meters attributed to new leases, while the remainder reflected pre-leases signed during construction.

Regionally, Bratislava and Košice remain the strongest demand hubs, though the pace of transactions has tempered. The largest deal this quarter was a renegotiation in eastern Slovakia by an automotive tenant covering 15,300 square meters.

Perhaps the most telling metric is the vacancy rate, which rose to 5.45% at the end of the first quarter—up nearly a percentage point year-on-year and the highest in two years. Total vacant space now stands at 248,200 square meters, with 46% of this located in the Bratislava region and 26% in Trnava.

For logistics operators and occupiers, this shifting landscape brings opportunities for negotiation and greater choice in key locations, but also signals a market recalibration after years of rapid expansion. Those planning new operations or consolidations should leverage this window to secure favourable lease terms before the next cycle of tightening begins.

Source: SITA and comp.