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Savills Reports on Demand for Industrial Space in Czech Republic

David Stuckey by David Stuckey
May 16, 2025
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Savills Reports on Demand for Industrial Space in Czech Republic
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According to Savills, although intensive construction of warehouse and production facilities for lease in the Czech Republic continued into the first quarter of 2025, supply remains insufficient in certain key markets – particularly in Prague and Brno, but also, to a lesser extent, in Vysocina and larger cities in South Bohemia.

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According to Savills, “while this opens opportunities for new industrial projects, it is important to ensure that all input costs (especially land prices) do not lead to excessively high rental rates that tenants in specific locations may not be willing to accept.”

“There is vacant space available on the market,” said Lenka Pechova, Senior Research Analyst at Savills, “but much of it is located in less desirable areas, either with limited labor availability, complicated access for freight transport, or offered at rental rates that do not align with tenants’ budgets.”

According to Savills, although the most sought-after location in the Czech Republic continues to be the southern edge of Prague along the country’s D1 highway, opportunities for new development in this area are largely exhausted. “The vacancy rate in Prague has remained below 3% since mid-2020,” explained Pechova. “In the city’s southern outskirts, available units appear only rarely and are typically leased even before the previous tenant moves out. We are seeing a similar situation now, with units expected to become physically available in 2027 but likely to secure new tenants within this year.”

The opposite is true in the Moravian-Silesian, Olomouc, and Plzen regions of the country, Savills reports, “where supply currently exceeds demand, resulting in more competitive rental conditions.”

“In the Moravian-Silesian region, the availability of large land plots has enabled a wave of speculative developments in recent years, reacting to increased demand during the pandemic,” said Ondrej Micek, Head of Industrial Agency at Savills. “In the Plzen region, along the D5 highway, new developments have coincided with several older units returning to the market after previous tenants moved out.”

Image source: www.gisgeography.com

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David Stuckey

David Stuckey

A founder and former Executive Editor of CEE Legal Matters Kft., now writing for CEE Real Estate Matters. A professional writer, editor, publisher, consultant, and entrepreneur, and an amateur tennis player, cinephile, and bon vivant.

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