Key Market Trends in Q2 2025
According to the latest quarterly report from 108 Real Estate, a leading monitor of the logistics and production hall segment across Slovakia, Q2 2025 marked a continued slowdown in the industrial property market. Total leasing activity reached only 103,068 m², with net take-up at a mere 73,009 m². This represents the weakest leasing activity since 2018, and net take-up has halved compared to 2023 and 2024. Consequently, the vacancy rate climbed to 6.15%, the highest level recorded since 2021.
Who's Driving Demand?
Despite the overall slowdown, certain sectors continue to drive demand. Logistics firms accounted for the largest share of leasing activity at 30.5%, followed closely by distributors at 27.5%. These sectors remain crucial players in the Slovak industrial real estate landscape.
Tenant Advantage: More Options and Flexible Terms
A significant volume of new industrial space is being developed speculatively, meaning properties are being built without pre-committed tenants. This trend, combined with the persistent weak demand, is creating an advantageous environment for businesses looking to rent. Tenants can anticipate an increased selection of available properties in the coming months. Moreover, the market dynamics are expected to lead to downward pressure on rents and the offering of more flexible contractual conditions, particularly in key locations like Trnava and Senec. This shift empowers tenants to negotiate more favorable deals than in previous years.
Slovakia's Enduring Appeal for Industrial Investment
While the market is experiencing a temporary softening, Slovakia continues to maintain a stable and attractive position for industrial investment. Its strategic geographical location, coupled with high-quality infrastructure and a strong, diversified energy mix, ensures its long-term appeal for logistics, manufacturing, and distribution operations. These fundamental strengths provide a solid foundation for future market recovery and sustained business growth.
Looking Ahead: What This Means for Your Business
The current market conditions in Slovakia present a unique window of opportunity for businesses seeking industrial real estate. With rising vacancy rates, softening demand, and the availability of speculative developments, tenants are in a stronger negotiating position. Now is an opportune time to explore the market for competitive rents and flexible lease terms that align with your operational needs. As vacant spaces are projected to increase further, the scope for choice and advantageous deals will only expand.
Source: systemylogistiky.sk
