Small Business Unit market booms: 2026 set to be the second-strongest year on record

According to Savills analysis of the Czech market for Small Business Units (SBUs), demand for small industrial units for lease continues to significantly outpace supply. As of March 2026, the vacancy rate stood at just 4.1%, with available space recorded in only four regions across the country. In Prague, newly available units are being leased almost immediately. Provided all projects currently under construction are delivered by year-end as planned, the market is expected to see 46,900 sq m of new SBU completions in 2026, making it the second-strongest year on record for the sector, surpassed only by the record year of 2007. For the purposes of this analysis, Small Business Units (SBUs) are defined as Grade A industrial properties offering individual units with a maximum gross leasable area (GLA) of 1,000 sq m.

Net take-up totalled 38,900 sq m in 2025, followed by a further 12,000 sq m in Q1 2026. However, the market’s true potential is considerably higher, with leasing activity constrained primarily by the limited availability of suitable space. In locations where neither existing nor pipeline premises are available, demand cannot be converted into completed leasing transactions despite remaining present in the market. “There is strong demand for small industrial units from international companies entering the Czech market. At the same time, these units are increasingly sought after by businesses currently operating from older industrial premises. Many of these properties no longer meet modern technical standards or are being demolished, redeveloped, or repurposed for entirely different uses, often residential,” says Lenka Kociánová, Industrial Consultant at Savills.

Small Business Units are occupied by a wide range of businesses, including manufacturers, wholesalers, traditional retailers, and e-commerce companies. The diversity of occupiers spans numerous industries, from furniture, food, tools, and swimwear retailers to automotive service providers, bicycle retailers, and equipment rental companies.

Vacant space available in only four regions
The nationwide vacancy rate stood at 4.1% in March 2026, representing 18,100 sq m of immediately available SBU space. Vacant Small Business Units were recorded in only four regions, while the remaining regions reported zero vacancy. Furthermore, five of the Czech Republic’s 14 regions currently have no SBU rental developments at all. As expected, the largest volume of vacant space was concentrated in Prague, primarily due to the completion of new developments and the release of several existing units. The seemingly elevated vacancy rate in the Central Bohemian Region (22%) is largely the result of the region’s very limited existing SBU stock. The availability of just a handful of vacant units has a disproportionate impact on the overall vacancy statistics.

Prague continues to lead the Small Business Units market
As of March 2026, the total stock of Small Business Units in the Czech Republic amounted to 439,400 sq m, representing approximately 3% of the country’s total Grade A industrial stock. Prague continues to dominate the market, accounting for more than 58% of the total national SBU stock, followed by the South Moravian Region (20%) and the Pilsen Region (14%).

Small Business Units are frequently developed as part of larger industrial parks, although many are also built as standalone projects. Construction often begins on a speculative basis; however, the majority of units are pre-let before completion.

As of March 2026, a total of 31,700 sq m of new SBU space was either under construction or had reached shell & core completion, with 39% of this pipeline already pre-let. Beyond the current construction pipeline, approximately 410,000 sq m of future SBU space is currently progressing through various planning and permitting stages, underlining the sector’s substantial long-term growth potential.

Headline rents for SBU warehouse space currently range between €8.50 and €12.25 per sq m per month. The highest rental levels are typically achieved by newly completed developments located in Prague’s inner city, while warehouse rents in regional markets generally range between €7.50 and €9.50 per sq m per month.

Read the full report here.