Demand slows, but the market remains solid

In the first quarter of 2026, gross realized demand reached approximately 414,500 m², reflecting both quarter-on-quarter and year-on-year declines. Net take-up was even lower, indicating more cautious decision-making by companies.

A key trend is the growing share of lease renegotiations, which now account for more than half of all transactions. Instead of expansion, many companies are optimizing their existing warehouse footprints.

Despite this slowdown, market fundamentals remain healthy, and experts expect a gradual recovery in activity over the coming quarters.

Record-breaking development in Cheb

The most significant milestone of the period was the completion of the largest industrial building in Czech history within the Panattoni Business Park in Cheb.

  • total size: approximately 214,000 m²
  • tenant: H&M
  • fully leased upon completion

This development highlights the increasing importance of regional logistics hubs outside Prague and confirms continued demand from large-scale international occupiers for strategically located distribution space.

Strong development pipeline continues

Despite slower leasing activity, construction remains strong. Around 307,000 m² of new industrial space was completed in Q1 alone, representing a significant year-on-year increase.

At the same time, more than 1.1 million m² of industrial space is currently under construction, with a large share concentrated in Prague and Central Bohemia.

Speculative development is also increasing, signaling developer confidence in long-term demand, even in a more cautious short-term market environment.

Stable rents and growing availability

A positive factor for tenants is the continued stability of prime industrial rents, which remain at approximately €7.00–€7.50 per m²/month.

At the same time, vacancy levels are gradually increasing, providing companies with more flexibility and stronger negotiating positions compared to previous years.

What this means for occupiers

The current market environment reflects a transition toward a more balanced phase:

  • tenants have more options than in recent years
  • decision-making is more strategic and less urgent
  • high-quality logistics space remains competitive

Large-scale transactions and landmark developments confirm that logistics and industrial real estate continue to be one of the strongest segments of the Czech property market.

Outlook

Despite a slower start to the year, the Czech industrial market remains fundamentally strong. A combination of new supply, stable rental levels, and ongoing large-scale developments suggests that activity may accelerate again later in the year.

For occupiers, this means one key message:
???? Companies planning expansion or relocation should act strategically—market conditions can shift quickly.