At the end of last year, a total of 1.5 million m2 of industrial space was either under construction or with a completed rough construction in the entire Czech Republic. Of this space, 48% was available for lease. Just for comparison, in 2023 there was 1.4 million m2 of industrial space under construction, in 2022 1.2 million m2, in 2021 1.1 million m2, in 2020 692,000 m2 and 14 years ago (in 2011) 117,000 m2 of industrial space.
The topic of warehouse automation is also related to advances in digitalization and artificial intelligence, which promise higher efficiency and lower costs. Investments in technology should be more affordable in 2025, according to the Savills European Industrial and Logistics Occupier Markets study, thanks to the easing of monetary policy and reduced financing costs. This is also associated with the energy demands of new technologies, which is why tenants are increasingly aware of the need to ensure sufficient energy sources and the related transition to clean energy.
“In the Czech Republic, we expect demand to stabilize and the gradual absorption of the supply of speculatively built warehouses completed in the last year. With the growing emphasis on ESG, tenants are interested in buildings equipped with solar panels, heat pumps and chargers for electric vehicles. Towards the end of 2025 and in 2026, we expect increased activity in the Ústí nad Labem region due to its geographical proximity to the future TSMC gigafactory in Dresden, which should start operating in 2027,” says Ondřej Míček, head of industrial agency at Savills.
Within the scope of under-construction space, this year, those interested in new warehouse or production space have the most alternatives in the Moravian-Silesian and Pilsen regions, but also on the northern and western outskirts of Prague.
The largest vacant unit is located in the Pilsen region
Specifically, in the Moravian-Silesian region, 172,900 m2 of buildings under construction are still vacant. In addition, over 700,000 m2 of additional space is ready for construction in this region and can be handed over to tenants for use within 10 to 15 months from the signing of a binding contract.
Always click on the image to enlarge. Source: Savills
In the Pilsen region, 126,700 m2 of under-construction industrial space is available to tenants. There is also a 50,000 m2 building available, which is currently the largest vacant unit in the Czech Republic and can be prepared for occupancy in a short time frame of 4 to 6 months. Another 320,000 m2 of future space has the necessary permits issued in this region to begin construction.
The aforementioned Ústí nad Labem region is best situated in the Czech Republic for potential deliveries or connections to the Dresden gigafactory. It currently offers almost 79,000 m2 of vacant space within ongoing construction and another 456,000 m2 can be offered for custom construction projects, including a diverse range of locations where custom construction of space can be offered for the future user's ownership, not just for long-term rental.
"Companies looking for modern premises in the above regions of the Czech Republic have a great opportunity to acquire brand new warehouse or production premises in a short time frame. In addition, these buildings will meet the latest technological and ESG requirements and can be customized according to the tenant's requirements," adds Ondřej Míček.
