The Czech industrial and logistics real estate market closed the first quarter of 2026 with very strong results. Approximately 307,000 sqm of new space was completed, representing the second-highest volume of new construction in a single quarter in history. At the same time, the largest industrial building in the modern history of the domestic market was added to the market. The market is in good shape—construction activity remains high, vacancy rates hover around a healthy 4.7%, and rents remain stable, although they are still relatively high compared to neighbouring countries. This is according to a recent analysis by Colliers.
Record-breaking building in Cheb
The total area of modern industrial and logistics space in the Czech Republic reached approximately 13.6 million sqm by the end of the first quarter of 2026, following the completion of roughly 307,000 sqm of new space. The increase is primarily driven by the handover of Building F at Panattoni Park Cheb. The latter has an area of approximately 214,000 sqm, which ranks among the largest projects in the modern history of the Czech industrial market.
“Construction activity remained at a high level; approximately 1.54 million sqm is currently under construction, of which roughly one-third is speculative. The largest share of construction continued to be in Prague, the Central Bohemian Region and the Ústí Region,” says Josef Stanko, Director of Market Research at Colliers. The most active developer was CTP Invest, with an approximate 46% share of the area under construction.
The volume of approved projects also remains high, currently totalling around 2.77 million sqm. Another 2.5 million sqm is currently undergoing various stages of permitting. Potential future supply thus exceeds 5.3 million sqm, with the majority of projects being developed along the D5 highway corridor near Plzeň; the D1 between Prague, Brno and Ostrava; and the D48 in the Ostrava region.
Vacancy rate fell slightly
The overall vacancy rate fell slightly to approximately 4.70% at the end of the first quarter of 2026, corresponding to roughly 639,100 sqm of immediately available space. “From a historical perspective, this is a healthy level, corresponding to pre-pandemic figures. Vacancy rates have risen slightly over the past few quarters due to increasing speculative construction, although absorption of new space remains stable,” explains Josef Stanko.
Moderate demand with a predominance of renegotiations
Gross take-up in the first quarter of 2026 reached approximately 414,000 sqm, which is 8% lower than the five-year average. Net take-up excluding renegotiations amounted to approximately 189,000 sqm. New leases and expansions accounted for a significant portion of the total, although renegotiations remained a major component of overall demand. The breakdown of demand by tenant type was significantly skewed by the renegotiation of a large logistics company (147,000 sqm) at Prologis Park Jirny. Logistics and transportation companies thus accounted for approximately 71% of gross realised demand, while manufacturers accounted for around 19%. The remaining share was divided roughly equally between distributors and other tenant categories.
Prime rent remains stable
Prime rents remained largely stable across major locations, primarily due to low vacancy rates and the still-limited supply of speculative projects. For example, in Prague and its immediate surroundings, prime rents continued to range between €7.00–7.50/sqm/month in the first quarter of 2026. Property owners in the Moravian-Silesian and Pilsen regions, where vacancy rates are rising and the supply of space is generally greater, have begun offering more favourable terms to retain existing tenants and attract new ones.
This year is expected to be strong
“The Czech industrial and logistics real estate market remains in a strong position for the remainder of 2026. A record volume of completions, a large number of projects (both planned and under construction), and continued high tenant activity attest to the attractiveness of the Czech market,” summarises Josef Stanko, noting, however, that the international environment has become significantly more complicated since the turn of the year and that the coming quarters will test the domestic market’s resilience. According to Colliers’ analysis, figures for the Czech industrial market in the first quarter do not yet signal a dramatic correction in demand, though this is to be expected given the cyclical nature of demand throughout the year. However, the prevalence of lease renewals over new leases suggests that tenants may be adopting a wait-and-see approach to final decisions on expansion.
