Navigating Slovakia's Evolving Industrial Real Estate Landscape
Slovakia's industrial real estate market is currently experiencing a dynamic period, marked by both evolving trends and significant opportunities for businesses seeking modern warehouse or office space. As we move into the second half of 2025, the market is demonstrating resilience and adaptability, driven by a strong focus on sustainability and technological innovation.
Current Market Dynamics and Developer Confidence
Shifts in Demand and Vacancy Rates
The first half of 2025 saw a continuation of the slowdown in the Slovak industrial real estate market. Demand has decreased year-on-year, and the vacancy rate has risen to 6.15% by the end of Q2 2025 – the highest in three years. This represents an increase of over 0.5 percentage points from the previous quarter and more than a 100% rise year-on-year.
Continued Construction and Future-Ready Spaces
Despite these shifts, construction activity remains robust. Developers continue to proceed with new projects, indicating strong confidence in the Slovak market's long-term potential. This is largely due to a significant portion of new developments being pre-leased. For example, in Q2 2025, 77,800 sqm across five buildings were completed, with 26% pre-leased at delivery. A total of 318,600 sqm of industrial space is currently under construction, an increase year-on-year, with nearly 58% (190,700 sqm) already secured by tenants.
The market is clearly shifting towards sustainable and innovative solutions. Tenants are increasingly prioritizing ESG-certified, technologically advanced, and flexible spaces, aligning with global corporate responsibility goals and operational efficiency needs.
Key Demand Drivers and Strategic Opportunities
Who's Driving Demand?
The strongest demand for new developments comes from key sectors. Logistics providers (3PLs), automotive companies, and manufacturers are actively seeking modern industrial space to expand or optimize their operations. Notable transactions in Q2 2025 included Berlin Brands Group, an international e-commerce firm, leasing nearly 22,300 sqm in a logistics park near Senec, and a 3PL provider securing 21,000 sqm in the Bratislava City submarket. Total gross take-up reached 103,100 sqm across 14 transactions, with net take-up (excluding renegotiations) at 73,000 sqm.
The Rise of Speculative Construction
Interestingly, some developers are initiating speculative construction projects – building without pre-committed tenants. This move, despite the overall decline in demand, is seen as a positive signal, particularly with the anticipated development of industrial parks surrounding the planned Volvo automotive plant near Košice. This indicates a proactive approach by developers to meet future demand and provide readily available modern facilities.
Understanding Rental Costs and Availability
Industrial and Warehouse Space Rental Rates
Businesses considering new premises will find competitive rental rates in Slovakia. The highest achievable rents for industrial space reached €5.50/sqm/month in Q2 2025. In selected locations, depending on the area's attractiveness and the availability of vacant space, rents typically range between €4.00 – 4.50/sqm/month. The total stock of modern industrial premises for lease in Slovakia currently stands at 4.64 million sqm.
Office Space within Industrial Facilities
For businesses requiring integrated office and warehouse solutions, office space within industrial buildings commands separate rental rates, typically ranging from €9.00 – 11.00/sqm/month. This offers a convenient and cost-effective solution for companies needing administrative functions co-located with their operational facilities.
Slovakia’s industrial real estate market, while navigating evolving conditions, presents robust opportunities for businesses. With continued construction, a focus on modern and sustainable facilities, and strategic developments like the Volvo plant, it remains a compelling location for logistics, manufacturing, and automotive industries seeking high-quality industrial and warehouse space.
Source: property-forum.eu
