In the third quarter of 2024, leasing activity for logistics and industrial spaces in Slovakia reached nearly 140,000 sq m, with take-up (leased spaces adjusted for lease extensions in the current tenant's premises) amounting to 83,000 sq m. This represents a significant 34% decrease compared to the same period last year. Along with other interesting findings, this was highlighted in the latest quarterly report by the real estate consulting company CBRE.
"The decline compared to 2023 is visible in almost all indicators, and in some cases, it is even more pronounced. However, this is primarily because it was truly a record year," explains Michal Cerulík, Director of the Leasing Department for Logistics and Industrial Properties at CBRE Slovakia.
"In terms of rental types, pre-leases accounted for a significant 36% share. This was followed by renegotiations (33%), new leases (13%), expansions (11%), and short-term leases (7%). The substantial share of pre-leases recorded in the third quarter was primarily due to the signing of a large transaction by a manufacturing company in eastern Slovakia."
"Pre-leases offer advantages on both sides. Tenants have the opportunity to customize their future spaces according to their specific needs, while landlords can significantly reduce the risk of potential vacancies through this method," he added.
The largest share of leased space, reaching 49%, was concentrated in the wider surroundings of Bratislava. This was followed by eastern Slovakia with 34% and central Slovakia with 9%. Surprisingly, the western part of Slovakia (excluding the wider surroundings of Bratislava) accounted for the least at only 8%. In terms of categories, the industrial sector led rental activity in the third quarter with 33%. It was followed by retail (21%), the automotive sector (19%), and 3PL (15%).
The vacancy rate for industrial and logistics spaces increased to 4.77%. This was primarily caused by the completion of over 40,000 sq m of new, still-unleased spaces within a single hall in western Slovakia.
"This is currently the reason for having the highest vacancy rate of spaces across Slovakia, specifically 6.34%. This is followed by central Slovakia (4.83%) and the wider surroundings of Bratislava (3.77%). The least amount of available spaces is in the eastern part of the country, currently only 2.86%."
"The prospects in the segment remain promising. In 2025, approximately 375,000 sq m of spaces currently under construction are expected to be completed. An even more interesting figure is that 56% of them are already pre-leased," he added.
The highest achievable rent is currently at €5.75/sq m per month, which has increased by 5% year-on-year. The average rent has risen by only 2% year-on-year and currently stands at €4.90/sq m. The prime yield is at 6.25%.
