After a record-breaking year in 2023, when nearly 2.96 million sq m of industrial space was in demand1, the industrial market experienced a significant slowdown in 2024. Demand volume fell to 1.91 million sq m, and the number of inquiries dropped by more than a third. Nevertheless, the first months of 2025 suggest a possible recovery. Nearly 200 new inquiries have been recorded, totaling around 900,000 sq m. Manufacturing and logistics companies continue to account for over 70% of total demand, while interest from the e-commerce sector has declined year-on-year. The geographical structure of demand is also shifting, with traditional locations losing share in favor of regions offering better operating conditions and improved access to foreign markets.
Interest in leasing industrial space reached a historic high in 2023, with a total volume of 2.96 million sq m—marking the highest level of demand since the modern industrial market began being tracked. However, 2024 saw a significant cooling, with total demand dropping by nearly half to 1.91 million sq m. The decline was evident not only in the volume of space requested but also in the number of inquiries, which fell to just 281 compared to 444 the previous year. Still, the first four months of this year bring hopeful signs, with nearly 200 new inquiries recorded for spaces totaling close to 900,000 sq m.
Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield:
“The drop in demand was caused by several factors, primarily the slowdown in the e-commerce segment, which is returning to normal after a rapid rise during the COVID period. Another factor is the weakening demand in neighboring Germany, prompting companies to take a more cautious approach to expansion and development, maintaining greater flexibility in case of market fluctuations. Equally important is the slowdown in industrial production—particularly in the automotive sector—which has also played a significant role."
Traditional sectors continue to drive demand
The structure of demand for industrial space remained relatively stable in 2024, with more than 70% of inquiries still coming from manufacturing and logistics companies, which continue to dominate the market. Compared to last year, there is a slight revival in demand from retail and wholesale sectors, which are once again actively seeking suitable spaces. On the other hand, the e-commerce segment—which had been a major driver of demand in recent years—saw a year-on-year decline of 40% in 2024, reflecting broader consolidation within the sector.
Chart 1: Demand Trends by Tenant Sector
Source: Cushman & Wakefield
Logistics Prefers Highway Hubs, Manufacturing Favors Regions, Especially in Moravia
Over the past four years, we have observed a gradual shift in part of the demand for industrial space away from traditional hubs such as Prague, Plzeň, Brno, and Ostrava. Notably, the Olomouc and Ústí nad Labem regions have seen a significant increase in interest. The Ústí region, thanks to its location along a strategic corridor toward Germany, is becoming an attractive destination for tenants who find more favorable conditions here than across the border—whether in terms of lower costs, more accessible labor, or the improving quality of transport infrastructure.
Northern and Southern Moravia remain key destinations for manufacturing companies, where firms often find a suitable combination of technical facilities, workforce availability, and regional support. In contrast, logistics companies continue to prefer locations with direct access to the main highway network, particularly along the D1, D5, and D8 motorways.
Map 1: Regional Demand by Sector in 2024
Source: Cushman & Wakefield
Growing Interest in Regional Areas
A graphical comparison of industrial space demand between 2019 and 2024 clearly illustrates a shift in tenant location preferences. While in 2019, 75% of all demand was directed toward the main industrial hubs—specifically Prague, Plzeň, Ostrava, and Brno—by 2024, this share had dropped to 51%. As a result, other regions have significantly strengthened their position, with their share of total demand rising from one-quarter to nearly half.
This shift confirms a trend of market decentralization, where tenants are increasingly looking for alternative locations outside the main metropolitan areas. This is primarily due to better availability of labor, lower operating costs, and improving infrastructure in previously overlooked regions. The growing interest in areas beyond the main industrial centers is a consequence of rising costs in large agglomerations, limited availability of vacant space, and simultaneously improving infrastructure and workforce accessibility in these parts of the country. The strategic location of certain regions—such as Ústí nad Labem—relative to foreign markets also plays a significant role.
Chart 2: Demand by Location in 2024
Source: Cushman & Wakefield
Jiří Kristek, Head of the Industrial and Retail Warehousing Team, Cushman & Wakefield:
“In the past, both demand and supply were concentrated mainly in large urban areas such as Prague, Brno, Ostrava, and Plzeň. In recent years, this trend has started to shift, with companies seeking locations that better suit their geographic needs. Smaller towns typically offer better access to a skilled workforce and sites suitable for development. These towns often provide more flexible conditions and are sometimes better equipped to support new construction efforts. At the same time, investors are no longer insisting on large cities and are increasingly willing to invest in regional areas.”
1 The terms “interest” and “demand” in this report refer to an inquiry made for space available for lease. This does not represent realized demand, commonly referred to as take-up, which indicates that tenants have already signed a lease agreement.
