The share of tenant-favourable markets is expected to fall from the current 52% to 33% by 2029. This is being driven by declining vacancy and limited supply of space as the share of landlord-favourable markets is set to rise from 26% to 39% in 2029, according to Cushman & Wakefield's report, which analyses 135 logistics markets worldwide,
Global rents for industrial and logistics space are currently 36% higher than in 2020. Although the pace of rental growth is moderating, demand remains and the availability of quality space in key locations continues to tighten. In the EMEA region, 63% of markets are in a phase of moderate growth or stagnation, compared with 71% in the previous year. Around 40% of markets in EMEA expect vacancy to decline over the next three years, 38% anticipate stability, and only 22% expect an increase. Western European markets, particularly the United Kingdom, France, Ireland, Belgium and Sweden, face a shortage of modern space, while parts of CEE have entered a correction phase, where rents are stagnating or declining slightly.
The Czech Republic is among the markets where rents declined slightly year-on-year in 2025, a normalisation following the increase recorded between 2020 and 2022. Stable demand and limited new development mean vacancy is expected to continue declining. Electricity prices for businesses are slightly above the global average of the markets monitored, a factor for companies deciding where to locate operations.
"After a period of rapid growth, the Czech industrial and logistics market is gradually stabilising. Quality space in well-connected prime locations remains limited, and the expected decline in vacancy will further narrow the options available. Companies should use current market conditions to review their real estate strategies, extend key leases or secure space," says Jiří Kristek, Head of Occupier Services in the Czech Republic at Cushman & Wakefield.
Differences in electricity prices for industrial users across Europe are widening and becoming a key parameter in location decisions. In EMEA, 75% of markets recorded electricity prices above the global median, and energy costs remain higher than in other regions. E-commerce remains the dominant driver of demand across all regions, followed in EMEA by retail and energy users. The combination of tightening availability, stable or declining vacancy, and structural demand is shifting the balance of power back towards landlords.
