- The first quarter of the year indicates a recovery not only in construction but also in leasing activity in the industrial property market
- The Karlovy Vary Region recorded the highest completed space and currently leads in construction activity
- Rents remain stable
- Cushman & Wakefield provides an overview of the Czech industrial market through an interactive digital map
Demand for industrial and logistics space in the Czech Republic continues in 2025. Leasing volumes in the first quarter slightly exceeded the five-year average, and the total stock of modern industrial space reached 12.44 million square metres. The highest number of new completions was recorded in the Karlovy Vary Region, which also accounts for the largest share of ongoing construction. Leasing activity also increased in Q1, with Prague leading in terms of closed deals. Most demand came from the logistics and transportation sectors, followed by manufacturing companies. Cushman & Wakefield has been monitoring this market for over 30 years and compiles a comprehensive overview in the form of an interactive digital map, covering 18 key regions.
In the first quarter of 2025, 155,900 sq m of industrial and logistics space were added to the Czech market, bringing the total stock close to 12.5 million sq m.
The largest share of newly completed space was in the Karlovy Vary Region (54%), followed by the South Bohemian Region (22%). The largest completed facility was a hall in Panattoni Park Ostrov North, built for a tenant from the automotive sector. Construction activity is higher compared to Q1 2024.
Industrial development continues across the Czech Republic. As of the end of March, over 1.07 million sq m of industrial space was under construction. The Karlovy Vary Region leads with 25% of ongoing development, followed by the Ústí nad Labem and Central Bohemian Regions, each with 15%
The largest project currently under construction is a 233,700 sq m facility in Panattoni Park Cheb, being developed for fashion retailer H&M and scheduled for completion in the final quarter of this year.
Graph 1: Total Industrial Space Under Construction by Region (sq m)
Source: Cushman & Wakefield
Construction may be influenced by newly introduced measures from U.S. President Trump, who is imposing tariffs on certain materials. However, the effects will vary depending on the type of property. Any restriction on new supply is likely to increase rental pressure in high-demand sectors, particularly logistics.
Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield: “Given the measures introduced by the U.S., we may see a shift in manufacturing closer to home, as companies aim to avoid complications related to importing from distant countries. At the same time, we may also witness part of the production capacity returning to the U.S., which remains a key export market for many products The Czech Republic can still benefit from its strategic location, strong transport connectivity, and well-developed infrastructure, making it an attractive destination for new investments in industrial and logistics real estate. When selecting a location, in addition to accessibility, the availability of a qualified and local workforce plays a crucial role.”
Renegotiations on the Rise, Logistics Drives Demand
In the first quarter of 2025, most executed leases came from the logistics and transportation sector (68%), followed by manufacturing companies at 25% reversal from 2023. E-commerce accounted for just 4% last year. Despite ongoing challenges in the automotive industry, tenants from this sector remain active, contributing 13% to total leasing demand.
Renegotiations represented 62% of total leasing activity in Q1 2025, the highest share in the past five years. The last time we saw a similarly high level was in Q1 2020. While pre-leases and new leases dominated in previous periods, the beginning of this year marked a notable shift towards renegotiations.
Graph 2: Structure of Leasing Activity in Q1 2025
Source: Cushman & Wakefield
Despite this recovery, prime headline rents in premium logistics parks remain stable both in Prague and across the regions.
All Data in One Place: Interactive Map of the Czech Industrial Market
For a detailed overview of the industrial property market in the Czech Republic, Cushman & Wakefield offers a new digital interactive map.
Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield: "A complete and up-to-date overview of the Czech industrial market is provided in the latest edition of our interactive digital map, designed to help commercial real estate players navigate 18 key industrial zones with 273 parks and monitor ongoing market developments."
This unique map features detailed data on vacancy rates, average rental levels, and development plans—all updated quarterly. It is accessible via the website www.czech-industrial.cz. currently covering 176 industrial zones with 273 A-class parks across all regions of the Czech Republic.
The map is also available in print, including detailed layouts of Prague and other major cities such as Plzeň, Brno, Teplice, and Ústí nad Labem. Cushman & Wakefield provides the printed version exclusively during in-person meetings, along with strategic insights into tenants, property sizes, and future development in specific locations.
