CEE-6 INDUSTRIAL MARKET Q2 2026

CEE-6 Industrial Sector Strengthens as Czech Yields Compress

The CEE-6 economic outlook continued to improve in Q2 2026, with GDP growth accelerating to 2.5% from 2.0% in Q1 and forecast to reach 2.6% in the second half of the year. Industrial production strengthened to 2.4% year-on-year, supporting a broadly tenant-favorable industrial and logistics market across the region, though conditions diverged, tightening in Poland while loosening further in Hungary and Slovakia. Nearshoring, supply chain diversification, and steady e-commerce and manufacturing activity continued to underpin occupier demand, even as rising labor and energy costs added to occupiers' cost calculus in cities such as Warsaw and Budapest.

CEE-6 industrial and logistics stock reached 73.7 million sq m at the end of Q2 2026, up 6.2% year-on-year, with Poland accounting for 52% of regional stock. The Czech Republic recorded the highest saturation in the region, at 1,295 sq m of stock per 1,000 inhabitants. Space under construction across CEE-6 totaled 4.0 million sq m, concentrated in Poland (32.6%) and the Czech Republic (28.8%), while Romania's pipeline expanded to 532,200 sq m. The speculative share of the regional pipeline eased to 37.5%, from 41.8% in Q1, pointing to continued developer discipline.

Gross take-up across CEE-6 reached 3.08 million sq m in Q2, lifting H1 2026 leasing volumes 16.5% year-on-year; the Czech Republic contributed 451,600 sq m to the quarter and 864,700 sq m year-to-date. Investment activity slowed markedly, with CEE-6 quarterly volume of €451 million down from €825 million a year earlier, reflecting investor caution amid rising financing costs. Prime yields stayed broadly stable across the region, with the Czech Republic the exception, compressing 25 basis points to 4.75%, the tightest in CEE-6. Prime rents also held stable, with the Czech Republic's €7.50/sq m/month remaining the highest in the region.

Outlook

Headline vacancy across CEE-6 is expected to remain broadly stable, though divergence should persist, with Poland continuing to tighten while Hungary and Slovakia see vacancy edge higher. Developer discipline is likely to continue, with speculative activity staying contained as schemes favor pre-let and build-to-suit structures. E-commerce, 3PL, and manufacturing occupiers should remain the core demand drivers, while investment volumes are expected to stay subdued near term. Prime rents should hold broadly stable overall, with the strongest upward pressure expected in the tightest markets, including the Czech Republic and Poland.