According to Industrial Research Forum data, the total stock of modern industrial space in the Czech Republic has reached approximately 13.6 million m², marking a new all-time high. Development activity remains strong despite a slight cooling in demand, with developers continuing to complete large-scale projects across the country.

Cheb Hosts the Largest Industrial Building in Czech History

A major milestone has been reached with the completion of a massive logistics facility in the Panattoni Park Cheb. The new warehouse covers approximately 214,000 m², making it the largest industrial building ever constructed in the Czech Republic.

The facility is fully leased to the global fashion retailer H&M, highlighting the continued strong demand from international brands for modern logistics capacity in the region.

This project also reinforces the growing importance of western Bohemia as a strategic logistics location, benefiting from its proximity to the German border and strong transport infrastructure.

Strong Development Activity Across the Country

In the first quarter of 2026, more than 300,000 m² of new industrial space was delivered across the Czech market. Construction activity therefore remains robust, even as overall demand shows a year-on-year slowdown.

A significant portion of new developments is pre-leased, which helps maintain market stability and reduces the risk of oversupply.

Market Remains Resilient Despite Demand Cooling

Although data indicates a decline in gross and net take-up compared to previous periods, the industrial real estate sector remains fundamentally strong. Companies are increasingly using the current environment to optimize portfolios, renegotiate leases, and relocate into higher-quality space.

Logistics providers, e-commerce operators, and manufacturing companies continue to be the main drivers of demand for modern warehouse space.

Czech Industrial Market as a Key European Hub

Record development activity and ongoing investment confirm the Czech Republic’s position as one of the most important logistics hubs in Central Europe. The rise of mega-scale facilities such as Cheb reflects a broader trend toward consolidation and specialization in modern distribution networks.

Future market performance will largely depend on economic growth in Europe, industrial production trends, and the stability of global supply chains.