Colliers has published the latest analyses based on information regarding the industrial and logistics (I&L) real estate sector in the CEE-13 region, describing it as "thriving."

In recent years, the I&L sector in the CEE-13 region has seen significant interest from developers, occupants, and investors.

This has included various opportunities, such as land acquisitions, single assets, large portfolios, and sale and leaseback arrangements with long-term income.

Despite facing economic and geopolitical challenges, such as higher financing costs, price mismatches, and limited product availability, the sector continues to be a key point for investments in the CEE region.

The total supply of modern I&L stock in the capital markets of the CEE-13 countries amounts to nearly 25 million m², with over 67 million m² at the country level.

Although vacancy rates vary between the CEE-13 countries, strong demand for I&L space has been primarily driven by the 3PL, retail, and distribution sectors. While 2023 saw a decline in demand in most countries, largely due to economic and geopolitical factors, the sector remains dynamic and continues to develop across the region.

The total supply of modern I&L stock in the CEE-13 region amounts to nearly 25 million m² in capital markets and over 67 million m² at the country level.

Significant yield compression in the CEE-6 region between 2012 and 2021, driven by low product supply and strong demand, has also led to substantial increases in rental rates, especially in high-demand markets. While rental growth may stabilize, economic pressures could lead to slight declines in some markets.

A significant portion of modern industrial and logistics space in the CEE-6 region incorporates sustainability initiatives. These countries have been leaders in implementing green solutions, resulting in high levels of environmental certification such as BREEAM or LEED. (Photo: Dreamstime)