Exploring the Boom in Czech Industrial and Logistics Real Estate in Q3 2025
The third quarter of 2025 showcases a robust and highly active Czech industrial and logistics real estate market. For businesses planning their next move or expansion, understanding these key trends is crucial. From record construction volumes to soaring demand and stable rents, the Czech Republic offers a dynamic environment for warehouse and office space.
Record-Breaking New Supply and Market Size
A substantial 130,800 square meters of new industrial and logistics space was completed in Q3 2025, representing the highest quarterly volume in the past three years. This surge in development has pushed the total market size to an impressive nearly 12.9 million square meters. This expansion provides a wider array of options for companies looking to establish or grow their operations in the region.
Demand Reaches Three-Year Peak
Gross demand for industrial properties also hit a three-year maximum, reaching an astounding 497,900 square meters. This figure stands a third higher than the five-year average, underscoring the strong interest from various sectors. The primary drivers behind this heightened demand were the manufacturing sector, accounting for 45% of total demand, and the logistics/distribution sector, contributing 30%. This highlights the Czech Republic's strategic appeal as a manufacturing hub and a critical node in European supply chains.
Stable Rents and Enhanced Tenant Negotiation Power
For businesses, the rental market presents an attractive scenario. The Prime Rent for industrial and logistics properties has remained stable for the fifth consecutive quarter, holding firm at €7.00–€7.50 per square meter per month. Office fit-out costs within these industrial complexes range between €9.50–€12.50 per square meter per month. Importantly, the market's dynamics have strengthened tenants' negotiating positions, leading to more generous incentives from landlords. While the vacancy rate saw a slight increase to 3.51%, this offers businesses a broader selection of available properties.
Strong Construction Pipeline Signals Future Opportunities
Looking ahead, the market continues to expand with an impressive 904,400 square meters of new space currently under construction. This robust pipeline ensures a steady supply of modern, high-quality industrial and logistics facilities in the near future, catering to evolving business needs and supporting continued economic growth.
Confidence in Czech Industrial Investments
The health of the Czech industrial property sector is further evidenced by investment activity. Industrial property investments constituted a significant 31% of the total transaction volume in the Q3 2025 investment market, reflecting strong investor confidence in the sector's long-term potential and stability.
Conclusion: A Prime Time for Czech Industrial & Logistics Space
The Q3 2025 report clearly positions the Czech industrial and logistics real estate market as a vibrant and expanding landscape. With record-breaking construction and demand, stable rental prices, and a tenant-favorable environment, businesses seeking optimal locations for manufacturing, logistics, or office operations will find compelling opportunities in the Czech Republic.
Source: systemylogistiky.cz
