The share of tenant-favourable markets is expected to fall from the current 52 pct to 33 pct by 2029. This is being driven by declining vacancy and the continued limited supply of space. This shift in the market balance will lead to an increase in the share of landlord-favourable markets in the coming years, rising from the current 26 pct to 39 pct in 2029.
Global rents for industrial and logistics space are currently 36 pct higher than in 2020. Although the pace of rental growth is moderating, demand remains robust, and the availability of quality space in key locations continues to tighten. In the EMEA region, 63 pct of markets are in a phase of moderate growth or stagnation, compared with 71 pct in the previous year. This shift indicates a slowdown in momentum, rather than a halt. Around 40 pct of markets in EMEA expect vacancy to decline over the next three years, 38 pct anticipate stability, and only 22 pct expect an increase.
There continue to be significant differences across Europe. Western European markets, particularly the United Kingdom, France, Ireland, Belgium and Sweden, are facing a shortage of modern space and rents there continue to rise. By contrast, parts of Central and Eastern Europe have entered a correction phase, where rents are stagnating or declining slightly.
Czech Republic: settles after a period of significant growth
The Czech Republic is among the markets where rents declined slightly year-on-year in 2025. This represents a normalisation following the sharp increase recorded between 2020 and 2022, rather than a structural weakening of the market. Stable demand and limited new development are contributing to the Czech Republic being among the markets where vacancy is expected to continue declining in the coming years.
From an operating cost perspective, electricity prices for businesses in the Czech Republic are slightly above the global average of the markets monitored. This is a relevant factor for companies deciding where to locate production or distribution operations, and energy costs are becoming an increasingly important criterion across Europe.
After a period of very rapid growth, the Czech industrial and logistics real estate market is gradually stabilising. For occupiers, however, this does not mean they should wait before making decisions. Quality space in well-connected prime locations remains limited, and the expected decline in vacancy will further narrow the range of options available. At the same time, there are opportunities emerging in locations where supply currently exceeds demand and where very favourable lease terms are available. Companies should therefore use the current market conditions to review their real estate strategies, extend key leases or secure space that will support both growth and more efficient operations.
Jiří Kristek, Head of Occupier Services in the Czech Republic, Cushman & Wakefield
Energy costs: a key strategic factor
Differences in electricity prices for industrial users across Europe are widening and are becoming one of the key parameters in location decisions. Countries dependent on imported energy commodities, particularly in the context of geopolitical instability in the Middle East, are facing higher costs. Occupiers are therefore increasingly prioritising energy-efficient buildings and locations with access to renewable energy sources or on-site energy generation.
In the EMEA region, 75 pct of markets recorded electricity prices above the global median. Despite a partial easing of wholesale gas prices in the second half of 2025, energy costs in Europe remain higher than in other regions.
Key drivers of demand: e-commerce, retail distribution and manufacturing
E-commerce remains the dominant driver of demand across all monitored regions and continues to be one of the most important long-term drivers of the market. In EMEA, it is followed by retail and energy users, which have become an increasingly visible demand segment over the past two years in the context of investments in renewable energy and decarbonisation.
The overall trajectory is clear. A combination of gradually tightening availability, stable or declining vacancy, and structural demand driven by e-commerce and manufacturing is shifting the balance of power back towards landlords. Occupiers who currently have greater negotiating power should actively use this window of opportunity to secure key locations and set their real estate strategies for the long term
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