MARKET IN MINUTES | CZECH REPUBLIC INDUSTRIAL MARKET Q1 2025

With 314,100 sq m of new completions, Q1 2025 saw the highest quarterly new supply volume since Q3 2022. Development activity also gained momentum, with nearly 1.55 million sq m under construction as of March 2025, 61% of which is already pre-leased.
The total existing stock expanded to nearly 13.2 million sq m. Nationwide vacancy rose to its highest level since 2015 and in March 2025 stood at 5.3%, up from 3.6% at year-end 2024.
Total leasing activity in Q1 2025 reached 498,500 sq m, significantly bolstered by lease renewals. This figure represents a 90% y-o-y increase and a modest 1% rise compared to the previous quarter. From a long-term perspective, gross take-up was 17% above the 10-year Q1 average.
Net take-up, which excludes lease renewals, totalled 188,300 sq m, down 3% y-o-y and 30% below the previous quarter, making it the weakest result since Q3 2023. The Greater Prague submarket captured 34% of Q1 net take-up and by sector, logistics service providers led new demand, representing 33% of all new leases signed during the quarter.