Savills analysed the development of demand and availability of industrial space in the regions of the Czech Republic. Intensive construction of warehouse and manufacturing space for lease continues during the first quarter of 2025. Nevertheless, in some areas, especially in Prague and Brno, the supply is still insufficient. In a milder form, the excess demand is also manifested in Vysočina and larger South Bohemian cities. While this situation opens up space for new industrial projects, it is necessary that all input costs (especially the price of land) do not result in excessively high rents that tenants in a given specific location will not be willing to accept.
“Although there are vacant spaces on the market, they are often located in less attractive locations. Whether because of poorer availability of labour, limited access for trucks or the rent level does not meet the limits and needs of potential clients,” says Lenka Pechová, senior research analyst at Savills.
According to Savills, one of the most desirable locations in the long term is the southern outskirts of Prague along the D1 motorway, where the possibilities for new construction are more or less exhausted. “The vacancy rate in Prague is below 3% as of mid-2020. On the southern outskirts of the capital, vacant units are rare and usually leased before the previous tenant moves out. This situation is also happening now, with units on offer that will be physically available during 2027, but they will probably find their new users during this year,” Lenka Pechová adds.
The situation is the opposite in the Moravian-Silesian, Olomouc, and Pilsen regions. Here, the supply of space exceeds the demand, and this is also related to more favourable rental conditions. “In the Moravian-Silesian region, thanks to the availability of larger plots of land, many new projects have been built speculatively in recent years in response to increased demand during the pandemic. In the Pilsen region along the D5 motorway, new construction has coincided with several older units coming back into supply after the previous tenants left,” explains Ondřej Míček, Head of Industrial Agency at Savills.
