Leasing Activity: YTD gross take-up reached 7.7 million sq m, up 20% year-on-year. Poland, Czechia, Romania, and Hungary posted robust leasing activity, led by manufacturing, logistics, and e-commerce. Czechia had its strongest quarter since 2022; Poland led in volume, Hungary saw dynamism in regional hubs, and Romania recorded a jump in net-new leasing.
Supply & Vacancy: YTD completions totaled 2.7 million sq m (down 20% YoY). The region’s vacancy rate is 7.2%, with Czechia at 4.0%, Poland at 8.2%, Romania at 5.7%, Hungary at 11.8%, Slovakia at 7.7%, and Sofia at 1.3%. The pipeline remains meaningful, with most new supply in Poland and Czechia. Slovakia’s pipeline is 58% pre-committed.
Prime Rents: Prime rents remained stable: Prague €7.50/sq m/month, Budapest €5.50, Romania €4.70, Warsaw €5.75, Sofia €5.60, and Slovakia €5.40. Incentives are rising in select markets, especially for older assets or higher-vacancy submarkets. Capitalization rates are stable, with selective compression in supply-constrained Polish locations.
Outlook
- Stable Fundamentals: The CEE industrial market enters Q4 2025 with stable fundamentals and a constructive medium-term outlook. Vacancy is expected to remain broadly aligned with current levels, with pockets of tightening where pipelines are limited.
- Demand Drivers: Nearshoring, supply-chain diversification, EV-sector investment, and automation will continue to shape occupier strategies and reinforce demand for high-quality space.
- Development & Rents: With speculative development subdued, prime rental levels should remain firm, while older stock will require modernization or repositioning to stay competitive.
- Resilience: Despite geopolitical risks, the region’s industrial markets remain resilient, supported by strong demand, disciplined development, and sustained infrastructure investment, creating a solid base for continued momentum into 2026.
