15 august 2025
The Slovak industrial property market experienced a significant boost in leasing activity in Q2 2025. Gross take-up reached 103,000 sq m, representing a 64% increase compared to the previous quarter. New leases and pre-leases dominated the market, accounting for 70% of all transactions.
Despite the increase in demand, the vacancy rate rose to 6.15%, the highest level since 2021. This shift gives tenants a stronger negotiating position. In response, landlords are offering more generous incentives to attract or retain occupiers.
Nearly 78,000 sq m of new space was delivered in Q2, while the total volume under construction remains stable at 318,600 sq m. Over 25% of these projects are located in Eastern Slovakia, which is becoming an increasingly strategic hub for logistics and manufacturing.
Only 60% of space under construction is pre-leased, highlighting the prevalence of speculative developments launched in previous years without confirmed tenants.
Prime rents slightly declined in Q2 to €5.50/sq m/month, reflecting softening demand and rising availability. Prime yield remained stable at 6.00%, still the lowest among all commercial asset classes.
The share of lease renegotiations is expected to remain high in the coming quarters. Investment activity may pick up slightly due to expected macroeconomic stabilization and improving confidence in key industrial sectors.
The growing demand for industrial and logistics properties in urban and suburban areas is pushing developers to choose between building on greenfield sites—untouched land—and revitalizing existing brownfields. Which option makes more sense today?
The Slovak industrial market entered 2025 with a noticeable slowdown. After a record-breaking 2024, demand in the first quarter dropped by tens of percent, particularly in the key automotive segment. Rising vacancy rates, a cautious approach from tenants, and a shift in bargaining power from landlords to tenants indicate that the market is heading into a period of greater flexibility — but also increased competition among projects.
Environmentálne, sociálne a riadiace (ESG) princípy majú čoraz väčší vplyv aj na industriálny sektor. Investori, developeri aj nájomcovia si uvedomujú, že udržateľnosť nie je len etickou zodpovednosťou, ale aj ekonomickou výhodou. Efektívna správa energií, minimalizácia uhlíkovej stopy a zodpovedné riadenie dodávateľských reťazcov prinášajú nižšie prevádzkové náklady a väčší záujem klientov o ESG certifikované priestory.