Despite a more cautious approach from some occupiers in recent quarters, developers continue to move forward with planned projects. The sustained construction activity reflects long-term structural demand for modern warehouse and production facilities across key regions.
A Market Showing Resilience
The total stock of modern industrial space in the Czech Republic now stands at approximately 13 million sqm and continues to grow year-on-year. Hundreds of thousands of square meters were delivered over the past year, expanding capacity particularly in established logistics hubs.
This performance confirms the industrial segment’s position as one of the most stable and resilient sectors within the commercial real estate market, even amid broader economic uncertainty.
Regions Driving Growth
Construction activity is strongest in areas with well-developed transport infrastructure and strong labor availability. The Karlovy Vary region has seen significant development momentum, alongside Prague and the Central Bohemian region. The Ústí nad Labem region is also gaining traction, benefiting from its strategic proximity to the German border.
In addition to speculative developments, there is a noticeable increase in built-to-suit projects tailored to specific tenants, particularly in manufacturing, e-commerce, and advanced logistics operations.
Pipeline Suggests Continued Expansion
Beyond the space currently under construction, additional projects are in advanced planning and permitting stages. This indicates that developers expect demand for high-quality industrial space to remain solid in the coming years.
For occupiers, the current market offers broader choice and increased flexibility in terms of location and technical standards. However, early planning remains essential, especially for larger-scale logistics or production requirements.
Source: Systémy Logistiky
