There are approximately 11 million m² of modern industrial halls in the Czech Republic.
At present, around 11 million m² of modern industrial halls exist across the country, with an additional 1.5 million m² currently under construction this year. This growth is largely a consequence of the COVID-19 period, which accelerated permitting processes and the subsequent development of both warehouse and highly automated production facilities.
Given the very low vacancy rate, it appears that supply and demand are in balance. Some hall owners even have to turn down potential tenants, and many new facilities are already pre-leased before completion. These halls are often built to tenants’ specific requirements. For example, the second-largest hall in the Czech Republic — a warehouse for H&M in the Cheb region — was constructed this way. The largest remains the Amazon warehouse in Kojetín, as mentioned in our 2022 article: link.
Possible negative impacts on occupancy
A significant portion of industrial halls is closely tied to the automotive industry. Around Mladá Boleslav, some halls have been vacated due to a slight decline in the automotive sector, primarily by smaller suppliers. Another factor affecting occupancy is the slowdown in e-commerce — warehouse facilities for online retailers have seen an annual decrease in orders of about 10%. There is therefore a slight year-on-year decline among smaller companies, though large market players continue to drive strong demand for industrial space.
What is the average rental price?
Before 2022, the average monthly rent for 1 m² of industrial space (depending on location) was around €3 to €4. Currently, due to inflation, high demand, and the increased technical standard of halls, the rental price has roughly doubled.
Warehouses and production halls located near Prague represent a separate category — in Prague and its surroundings, rents reach up to €9/m²/month.
The highest concentration of halls is in the Plzeň and Karlovy Vary regions
The Plzeň and Karlovy Vary regions have the highest number of industrial halls, primarily due to their connection to the motorway network. These facilities typically host companies linked to the German automotive industry — for instance, around Cheb or Ostrov u Stříbra.