Czech Industrial Market Q1 2026: Supply expands as vacancy reaches 4.7%
The Czech industrial market entered Q1 2026 with strong new supply and resilient leasing activity. New completions reached 307,000 sqm, up 44% y/y, while total stock rose to 13.6 million sqm. Net take-up stood at 192,500 sqm, down 3% y/y, and vacancy reached 4.7%.
Supply and construction pipeline
Modern class A industrial stock increased to 13.59 million sqm in Q1 2026. Prague and Central Bohemia remained the largest submarket with 36% of total stock, followed by the Pilsen region with 14% and South Moravia with 11%.
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A total of 307,000 sqm was completed across 9 logistics parks, 34% above q/q and 44% above y/y. Around 97% of the new supply was pre-leased at completion. The largest completed scheme was a 214,000 sqm building at Panattoni Business Park Cheb, fully leased to H&M.
Space under construction reached 1.14 million sqm at the end of Q1 2026. The share of speculative construction increased to 36%. Prague and Central Bohemia accounted for 362,000 sqm of the pipeline, followed by the Ústí nad Labem region with approximately 230,000 sqm.
Demand and vacancy
Net take-up reached 192,500 sqm in Q1 2026, down 49% q/q and 3% y/y. Gross take-up, including renegotiations, reached 414,500 sqm, down 35% q/q and 20% y/y. Renegotiations represented 54% of gross take-up, supported by the largest transaction of the quarter at 147,600 sqm.
Logistics companies dominated demand, accounting for 52% of net take-up. Production represented 32%, other occupiers 11% and distribution 5%. By region, the highest net demand was recorded in South Moravia with 31%, followed by Prague and Central Bohemia with 18%.
Vacancy stood at 4.7%, down 2 bps q/q but up 90 bps y/y. In absolute terms, 639,100 sqm was available for immediate occupation. A further 375,000 sqm of vacant space was in shell & core phase.
Rents and investment market
Prime rents in Prague remained stable at EUR7.25 per sqm per month. In South Moravia, headline rents stood at EUR5.50–7.00 per sqm per month. Moravia-Silesia reached EUR5.25–6.00, while Pilsen stood at EUR5.30–6.00.
Prime industrial yield was 5.00%. No industrial and logistics transaction exceeding EUR5 million was recorded in Q1 2026, while total investment volume across the market reached EUR405 million.
Outlook
The market outlook for the next quarters will depend on the delivery of the 1.14 million sqm pipeline and the balance between speculative construction and pre-leasing. The report notes projects currently marketed or expected to launch soon, with the industrial sector anticipated to contribute to investment volumes during the next three quarters.
Regional Director Industrial Agency
Head of Research
