The Czech industrial and logistics real estate market remains stable despite the uncertain global economic situation. According to the latest analysis by Colliers, the total area of modern industrial and logistics space in the Czech Republic reached 13.7 million sqm in the second quarter of 2026. Gross take-up totalled approximately 460,000 sqm, remaining close to the five-year average. While rents remained stable in most regions, the average vacancy rate gradually rose to 5.5%.
In the first half of 2026, approximately 446,200 sqm of new space was added to the Czech industrial and logistics real estate market. Although this represents a 2.5% year-on-year decline, the volume of completed projects remains at the level seen during the pandemic-period construction boom. The total area of modern industrial and logistics space reached approximately 13.7 million sqm. Developers have invested in the vast majority of new space, specifically 69%, in the area in and around Prague and in the Central Bohemian Region.
“Construction activity remains at a high level. Approximately 1.48 million sqm are currently under construction, of which 43 percent is being built speculatively by developers: that is, without a tenant having signed a contract in advance. Once again, the greatest amount of construction is taking place in Prague and in the Central Bohemian Region. Plus, the Ústí Region is also very active. CTP Invest is the clear leader among developers, accounting for approximately 44 percent of all ongoing construction,” explains Josef Stanko, director of market research at Colliers.
Approved but not yet started projects total approximately 2.72 million sqm, to which another roughly 2.5 million sqm in various stages of the permitting process can be added. Potential future supply thus exceeds 5.2 million sqm and is geographically concentrated, as is traditional, primarily along the D5, D1, and D48 highway corridors.
Vacancy Rates Are Rising; the Market Belongs to Industrial
The overall vacancy rate rose to 5.5% at the end of the second quarter, corresponding to approximately 753,400 sqm of immediately available space. This is the highest level since the third quarter of 2015, although at that time the entire market was roughly half its current size. The gradual rise in vacancy rates in recent years has been driven primarily by the influx of completed speculative buildings. Newly built spaces continue to be leased, so owners of older properties will increasingly need to modernise their buildings at a technical level to maintain their market position.
Gross take-up reached approximately 460,000 sqm in the second quarter, which is slightly below the five-year average. Net take-up, excluding lease renewals, renegotiations, and subleases, totalled roughly 256,800 sqm, a 45% increase year-on-year. This further confirms that, despite rising vacancy rates and global uncertainty, landlords are successfully signing new leases in existing properties, which accounted for 56% of the total realised volume.
“Manufacturing companies clearly dominated the tenant mix, making up approximately 41 percent of gross realized demand. Logistics and transportation firms accounted for roughly 21 percent, and distribution companies held the same share,” notes Josef Stanko.
Rents Largely Unchanged
The highest achievable rent remained essentially unchanged in the monitored locations. In Prague, it ranged between €7.00 and 7.50 per sqm per month in the second quarter, and in most regions the rate is supported by low vacancy rates combined with limited supply of speculative space. The exceptions are the Moravian-Silesian and Pilsen regions, where vacancy rates are rising and the availability of industrial space is generally higher. Landlords in these locations have therefore begun offering more competitive terms to retain existing tenants and attract new ones.
A Temporary Island of Stability
“The strength of the Czech industrial real estate market has so far made it a stable investment space for developers and funds. Now, however, it appears that growth in the volume of potential projects is slowing down, and approved projects are finally beginning to be implemented; this just as a large number of speculative buildings are being completed. In some regions, this could lead to an oversupply. However, if the market does not deviate from its traditional cycles, we can expect it to absorb new buildings just as quickly as it has done so far,” predicts Josef Stanko.
