The Dynamic Growth of Czech Industrial Real Estate
The Czech industrial and manufacturing property market has demonstrated remarkable resilience and growth, exceeding analyst expectations in 2025. The volume of newly leased industrial and production space reached an impressive 1.3 million square meters, with total tenant activity approaching 2.2 million square meters. This robust demand was primarily fueled by dynamic sectors such as engineering firms, logistics, and e-commerce. The overall supply of modern industrial facilities across the Czech Republic has expanded to 12.48 million square meters, maintaining a healthy vacancy rate of just 5.10%.
Record New Construction on the Horizon
For businesses planning future expansion, the outlook is promising yet competitive. A record-breaking 1.5 million square meters of new industrial and warehouse space is currently under construction and scheduled for completion throughout 2026. This substantial pipeline is a clear indicator of the market's strength, though it's important to note that a significant portion of these projects are already being developed with pre-secured tenants. This highlights the ongoing high demand and the strategic advantage of early planning for businesses seeking prime locations.
Stable Rents and Evolving Demand Patterns
In 2025, rental prices across the industrial sector stabilized, offering a predictable environment for businesses. The average rent in the fourth quarter stood at 6 euros per square meter per month. For properties situated in highly sought-after areas, particularly around Prague, rents commanded a premium, ranging between 7.25 to 7.50 euros per square meter per month. Demand remains diversified, with a notable and growing interest in smaller industrial units. However, availability for these compact spaces is increasingly scarce, especially in the vicinity of Prague, underscoring the need for proactive engagement in the market.
Future-Proof Facilities: What's Next for Manufacturing?
The manufacturing sector is evolving rapidly, and its demand for industrial space reflects this shift. Looking ahead, there's an anticipated surge in interest for hi-tech and automated halls. Modern businesses are increasingly prioritizing facilities that offer enhanced energy efficiency and robust data infrastructure. This trend signals a move towards more sophisticated, technologically advanced industrial spaces designed to support cutting-edge production and operational efficiency. Businesses should consider these features when evaluating their future industrial property needs to ensure long-term sustainability and competitiveness.
Source: systemylogistiky.cz
