CEE-6 INDUSTRIAL MARKET Q4 2025
CEE Industrial Market Overview: Demand Holds Firm as Supply Normalizes in Q4 2025
The Central and Eastern Europe industrial real estate market closed 2025 on a stable footing, supported by robust leasing activity and disciplined new development. Across the CEE-6, total industrial stock rose above 71 million sq m, confirming the region’s importance as a strategic logistics and manufacturing base for Europe. Demand remained healthy despite a softer macro backdrop, with logistics operators, manufacturers and retailers continuing to drive activity as supply chains adapt to nearshoring, distribution changes and evolving occupier requirements.
On the supply side, developers remained selective. New completions slowed to align more closely with long-term averages, while speculative construction became more constrained by financing conditions and build costs. At the same time, the active pipeline shows that development has not stopped. Instead, it is becoming more targeted, with a stronger focus on pre-leased space, build-to-suit schemes and phased delivery. This more measured approach is helping to support market stability across the region.
Demand fundamentals continue to look solid, but occupier behavior has become more cautious. The report shows a higher share of renewals and pre-lets, suggesting that many tenants are prioritizing proven locations over aggressive expansion. Modern, energy-efficient industrial space remains best placed to capture demand, particularly as ESG and automation requirements become more important in leasing decisions. In rental terms, headline prime rents are holding firm, but effective rents are increasingly shaped by incentives and by the widening gap between prime and secondary assets.
Outlook
- Growth backdrop: Economic conditions in the region remain relatively resilient, with CEE-6 GDP growth at 1.8% in Q4 2025 and expectations for stronger performance in 2026. That should provide a supportive base for industrial production and occupier confidence.
- Demand direction: Leasing activity is likely to stay healthy, although future demand may continue to lean more heavily on renewals, pre-leasing and operational optimization rather than speculative expansion. This points to a market that is active, but more selective.
- Rental and development trends: Industrial rents across Central and Eastern Europe are expected to remain broadly stable, while incentives continue to influence deal terms. With developers maintaining a cautious approach to new supply, the market appears set to remain balanced rather than oversupplied.
