How would you describe Holland & Co’s strategy on the Slovak logistics and industrial real estate market from the perspective of investment, sales, and leasing?
HAC focuses primarily on delivering services for prospective tenants, ensuring they receive the broadest possible selection of warehouse options tailored to their specific needs while securing the most favorable lease terms.
For investors, we actively search for properties that match their defined criteria — particularly investment size, expected yield, and technical specifications. In the case of value-add investors, we work to structure opportunities that allow them to achieve a minimum ROI of 20%.
Why has the logistics and warehouse real estate segment remained attractive to you long term?
This segment is the backbone of the economy and employment. Unlike other sectors such as retail, office, or residential, this segment creates fundamental economic value, especially through production and logistics activities.
How does your approach to logistics projects differ from typical market practices when it comes to sales and leasing?
We focus primarily on our clients’ needs rather than simply presenting what the market currently offers. If the required “product” — meaning a specific property — does not yet exist, we collaborate with landowners, developers, and investors to structure and deliver a tailored solution for our clients.
How do you assess the current state of the Slovak logistics real estate market — more transactions or more lease deals?
The industrial market is currently undergoing consolidation. Rather than an influx of new companies entering Slovakia, activity is largely driven by existing businesses that are expanding capacity or relocating to more suitable locations.
Do you currently see stronger demand from tenants or investors?
In the leasing segment, tenants currently hold the stronger negotiating position due to available warehouse capacity.
From an investment perspective, logistics and industrial assets are mainly traded by local funds, which largely determine property values within the Slovak market.
Which regions of Slovakia do you consider most promising for logistics projects today, and why?
Historically, the Bratislava region and western Slovakia have been the strongest areas with the highest leasing activity. However, we are seeing increasing momentum in eastern Slovakia, mainly driven by major investments such as Volvo’s upcoming project.
What parameters are currently decisive when tenants or buyers select a warehouse?
Location, rental price, workforce availability, and the building’s technical standard are the key deciding factors.
Which plays a bigger role: location, technical building standards, or tenant quality?
Location is always the most important factor because of proximity to end customers. The baseline standard of modern logistics and industrial buildings was already established about 20 years ago; today, improvements focus mainly on technical innovation and sustainability features.
The strength and quality of a tenant is also a crucial factor in both leasing and sales, particularly in terms of payment reliability and creditworthiness from a banking perspective.
How have client requirements for logistics spaces changed in recent years?
Clients now demand higher clear heights, lower energy consumption, and proximity to amenities for employees.
How are rental prices and asset values developing?
Rental rates are increasing due to rising construction and land costs. The value of logistics assets is primarily determined by valuations, banks, and investor expectations.
How do ESG and energy standards influence tenant and investor decisions?
Currently, ESG factors are more relevant for developers and owners seeking better refinancing conditions in the future. Tenants tend to consider them only marginally.
How do you expect the Slovak logistics market to look in five years from both leasing and investment perspectives?
We expect stability in lease conditions and continued development of new logistics facilities. A potential new growth impulse could come from geopolitical stabilization in the region and a broader recovery of the European economy.
