Agents in Prague and Brno continue to struggle to find industrial space for clients. The vacancy rate in Prague has been stuck below 3% since mid-2020, according to Savills, with units in southern outskirts along D1 highway leasing before previous tenants move out.
“Units expected to become physically available in 2027 are likely to secure new tenants within this year,” says Lenka Pechová, Senior Research Analyst at Savills. “The most sought-after location continues to be the southern edge of Prague along the D1 highway, where development opportunities are largely exhausted.”
The shortage extends to Vysočina and South Bohemian cities, where land prices often push the rents on new projects to unacceptable levels. Currently, 220,000 sqm of new industrial space is under construction nationwide.
Prime rents in Prague reached €7.50/sqm/month in Q1 2025, up 8% year-on-year. Brno follows at €6.20/sqm/month. Net absorption for Q1 totaled 127,000 sqm nationwide, with Prague accounting for 63,000 sqm despite limited availability. The total Czech industrial stock now stands at 11.3 million sqm, with an additional 1.2 million sqm in the pipeline through 2027.
“In the Moravian-Silesian region, large land plots enabled a wave of speculative developments responding to pandemic demand,” explains Ondřej Míček, Head of Industrial Agency at Savills. “The Plzeň region along D5 highway sees new developments coinciding with older units returning to market.”
Available space exists in less desirable areas with limited labor or complicated freight transport access. Savills writes that developers will have to balance location attractiveness with practical considerations for future projects.
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