Annual demand for industrial real estate in the Czech Republic reached its third-highest level ever last year, while the volume of buildings under construction remained at record levels. Interest in investing in local industrial real estate reached over €800 million, more than the last three years combined, according to a report by Colliers.
"The Czech industrial market experienced a recovery in the second half of 2025. Since 2015, modern industrial warehouse space has grown by 133%," explains Josef Stanko, Director of Market Research at Colliers. One reason for this growth is that the Czech Republic has become the focus of nearshoring, with increased demand for space from companies in the Asia-Pacific region.
New supply of industrial real estate space reached 229,000 sqm, bringing the total area of completed projects for the entire year to 813,500 sqm. The total area of construction across sectors approached almost 13.3 million sqm, representing a year-on-year increase of 7.7%. However, more than 1.6 million sqm remains under construction. Most construction is concentrated in the Karlovy Vary Region (21.3%), followed by Prague and the Central Bohemian Region (19.2%) and the Ústí Region (18.6%).
The vacancy rate rose to 4.9% in Q4 2025, representing almost 655,400 sqm. However, more than 41% of modern industrial space, or 679,000 sqm, is being built speculatively without a tenant. "Although these are unfinished spaces, they have been preserved in a state close to completion so that they can take on their final form with their future tenant. They could be available in a matter of weeks," comments Stanko.
Annual gross take-up in 2025 reached almost 2.1 million sqm, which is 6.9% more than the five-year average and the third highest annual result ever. The highest achievable rents on the Czech industrial market remained stable at €7.00-7.50/month/sqm for the sixth quarter in a row. "We are increasingly seeing tenants in a stronger negotiating position, which is reflected in more generous incentives offered by landlords in all regions," concludes Stanko.
