According to the Savills European Industrial and Logistics Occupier Markets report, the industrial real estate market is expected to experience a breakthrough year, potentially leading to a significant market recovery. Stabilisation of demand and gradual absorption of speculative warehouse developments completed in the past year is expected in the Czech Republic.
Increased occupier activity is anticipated, driven by key factors such as economic growth, technological advancements, and ESG. In the Czech Republic, the highest concentration of ongoing developments is in the Karlovy Vary, Plzeň, and Moravian-Silesian regions, where 763,000 sqm was under construction at the end of 2024. The most active developers in these areas are Panattoni and CTP Invest.
Ondřej Míček, Head of Industrial Agency at Savills, says: „Towards the end of 2025 and in 2026, we expect heightened activity in the Ústí nad Labem region due to its geographic proximity to the future TSMC gigafactory in Dresden, which is to start production in 2027.“
In the Moravian-Silesian region, 172,900 sqm of space remains available within projects currently under construction. Additionally, over 700,000 sqm of further space is ready for development, with the potential to be handed over to tenants within 10-15 months after signing a binding agreement.
In the Plzeň region, 126,700 sqm of under-construction industrial space is available for tenants. This includes a 50,000 sqm building, currently the largest vacant unit in the Czech Republic, which could be ready for occupation within 4-6 months. Additionally, 320,000 sqm of future space has received the necessary construction permits.
The Ústí nad Labem region is the best located in the Czech Republic for potential supply chain integration with the Dresden gigafactory. Currently, almost 79,000 sqm of space is available within ongoing construction projects, with an additional 456,000 sqm available for built-to-suit projects. There are also multiple locations where custom-built properties can be developed for ownership rather than just long-term leases.
“Companies seeking modern spaces in these Czech regions now have an opportunity to secure brand new warehouse or production facilities in a short timeframe. Additionally, these properties will meet the latest technological and ESG standards and can be tailored to tenants' specific requirements,” adds Ondřej Míček.
In the Czech Republic, construction activity remains high, with 1.5 million sqm either under construction or completed to a shell & core finish. At the end of 2024, 48% of this space was still offered for lease.
Among the factors driving demand, warehouse automation is returning to the forefront, due to labour shortages, and rising labour costs across Europe. This trend is closely linked to advancements in digitalization and artificial intelligence, which promise greater efficiency and cost reductions. Investments in technology are expected to become more accessible in 2025, supported by monetary policy easing and lower financing costs.
