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A record amount of industrial space is under construction in the Czech Republic

The industrial real estate market is set for a breakthrough year that could bring a more significant market recovery. Increased tenant activity is expected, with warehouse automation returning to the forefront among the factors influencing demand due to the shortage and rising labor costs across Europe. This is according to a study by Savills. In the Czech Republic, the most industrial space is currently being built or completed in the Karlovy Vary, Pilsen and Moravian-Silesian regions, where a total of 763,000 m2 was under construction at the end of 2024. The most active developers in these areas are Panattoni and CTP Invest.

Industrial production in the Czech Republic fell by 1.4% year-on-year last year, with the largest decline in the production of machinery and equipment.

Industrial production was 1.4% lower year-on-year in 2024. This is stated in the current press release of the Czech Statistical Office. In December 2024, production was 1.6% higher month-on-month in real terms, but it fell by 3.0% year-on-year. Representatives of suppliers of logistics systems and cardboard packaging responded to the published data for the portals of the magazines Systémy Logistiky and Svět balení.

Czech warehouses and production spaces are getting cheaper. Foreign companies are responding with increased demand

The real estate consulting company 108 Real Estate has been registering an increase in demand for warehouse and production space in the Czech Republic since the last quarter of last year. According to it, the increasing interest is mainly due to the flexibility of developers, gradually decreasing rents, greater availability of labor, as well as the current condition of the domestic automotive segment. For some longer-term leases, the effective rent, i.e. after taking into account incentives, has fallen below four euros per square meter per month. This is a price that the domestic industrial real estate market has not seen for several years. According to the consultants, this is a positive impulse for a number of international companies and operators looking for suitable space in the Central and Eastern European region.

A new industrial park will be built near Ostrava Airport

Development company Panattoni, in cooperation with the investment group Accolade, announced the completion of the acquisition of land near the highway and railway junction and Leoš Janáček Airport in Mošnov. The companies have acquired space here for the construction of an industrial complex called Panattoni Park Ostrava Airport.

New supply dropped below the 5 year average due to construction delays and developers intentionally delaying completion when a suitable pre-lease is not found

New supply dropped below the 5 year average due to construction delays and developers intentionally delaying completion when a suitable pre-lease is not found.  Industrial Research Forum Announces Industrial Market Figures for Q4 2024 The total amount of industrial space reached 12.3 million sq m, of that 106,700 sq m were delivered in Q4 2024 Speculative development decreased for the first time since Q1 2024. Of the 978,300 sq m currently under construction, 31% is being built speculatively Net take-up for industrial space reached 217,700 sq m in line with the quarterly average of this year. The vacancy rate increased by 3 basis points compared to the previous quarter, reaching 3.13% Prague’s average highest achievable rent stayed stable, reaching around €7.00-7.50 per sq m per month

ÚOHS authorized the American company Blackstone to purchase ten logistics parks in the Czech Republic

The Office for the Protection of Economic Competition (ÚOHS) has authorized the American investment company Blackstone to purchase a portfolio of ten logistics parks in the Czech Republic.

Logistics in the Czech Republic is on the threshold of a new era

Interviews with experts and questionnaire surveys showed that the Czech logistics sector is facing key decisions and changes that can fundamentally affect its future direction. Companies in the Czech Republic are facing increasing challenges, which include labor shortages, pressure on wage growth, the need to transition to automated processes and European regulatory policy. These factors force companies to rethink their strategies and investments in order to succeed in today's market.

The State of Retail 2025

The past few years certainly haven’t been easy for retailers. A pandemic, global chain disruptions and shortages, inflationary pressures that have squeezed consumers’ wallets and increased product costs, economic uncertainty and geopolitical instability have resulted in the closure of thousands of stores and the demise of numerous brands. Not content with all this economic disruption, a new phase of digital technology has altered consumer behaviour and increased expectations, changing the retail marketplace forever. Growth opportunities exist, but seizing them requires new mindsets, technologies, supply chain capabilities, and logistics networks.

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