Prologis, closed 2025 on the Czech logistics real estate market with an occupancy rate of 98%, outperforming the market average of 96% by two percentage points. These results reflect the portfolio’s long-term stable performance and sustained demand for high-quality distribution space. Continued e-commerce expansion and the country’s strategic location for supply chain regionalization remain key demand drivers.
In the Czech Republic, Prologis manages a portfolio totaling 1.42 million square meters, comprising 71 buildings and 110 customers across the 3PL, retail, e-commerce and manufacturing sectors. During 2025, the company signed 65 new leases and renewals totaling 501,000 square meters. It renewed the majority of its expiring leases, achieving a record-high 97% retention rate, underscoring the stability of its customer base and the quality of its services.
“2025 confirmed that Prologis in Czech Republic remains strongly positioned for further growth. High occupancy and customer retention reflect our customers’ confidence in our locations, technical building standards and value-added services,” said Anna Brath, Senior Leasing Manager, Prologis Czech Republic.
E-commerce continues to drive logistics demand
E-commerce remains one of the primary demand drivers. In 2025, the Czech e-commerce market reached revenues of CZK 206 billion, representing year-on-year growth of 6%. According to Prologis Research, e-commerce penetration across continental Europe accounts for approximately 10–15% of total retail sales, compared with nearly 30% in the United Kingdom, highlighting further growth potential in Central Europe.
Based on forecasts by Prologis Research, the European e-commerce sector is expected to grow at an average annual rate of approximately 5% in the coming years. Over the next five years, this expansion could generate additional demand for 1.4 to 1.9 million square meters of warehouse space annually. The same research team estimates that globally, e-commerce companies will account for approximately 25% of all new leasing activity in 2026.
“A distinctive feature of the Czech market is the dynamic growth of online grocery. This segment places exceptional demands on delivery speed, technological equipment and last-mile efficiency. For example, one of our grocery e-commerce customers serves Prague and surrounding areas from Prologis Park Prague-Chrášťany, where the combination of strategic location and operational efficiency significantly shortens delivery times and optimizes distribution processes,” added Anna Brath.
Logistics-intensive segments, including online grocery, are increasingly focused on improving the efficiency of existing distribution networks rather than simply expanding warehouse capacity. “Through our Prologis Essentials platform, we provide comprehensive and cost-efficient warehouse solutions that enhance operational and energy performance – from LED lighting, racking systems and material handling equipment to EV charging stations and other energy-efficient installations, including possible on-site solar production. Our objective is to deliver a fully integrated infrastructure that enables customers to focus on their core business,” Anna Brath added.
Regionalization and AI reshaping the market
Beyond e-commerce, the continued regionalization of supply chains will significantly influence the logistics market. According to Prologis Research, approximately 60% of senior executives expect a substantial shift of logistics operations closer to end markets by 2030.
“In this context, the Czech Republic holds a strong competitive advantage. Its central European location and direct connections to key transport corridors create favorable conditions for regional distribution models. Locations with direct access to Western European markets, such as the Pilsen region, or sites along the D1 motorway and west of Prague with links to the international airport, represent strategic value for occupiers,” said Martin Baláž, SVP, Head of Asset Management Prologis for Central Europe.
At the same time, digitalization and artificial intelligence are playing an increasingly important role in supply chain management. Approximately 70% of global companies already use advanced AI tools, particularly in quality management, risk identification and operational optimization. By 2030, Prologis Research expects artificial intelligence to support the majority of supply chain decision-making processes.
“At Prologis, we systematically leverage advanced data analytics, smart metering and building management systems to optimize asset performance. AI-enabled internal tools also support our asset management and customer service operations,” added Martin Baláž.
Outlook for 2026
Prologis enters 2026 in the Czech Republic with the objective of building on its stable leasing activity and responding to identified demand. In key locations in the Czech Republic, such as Prague and Pilsen, the company is ready to commence new development totaling up to 178,000 m².
“As we enter 2026, we do so with a high-quality portfolio, a stable customer base and a strong focus on value-added services. Modern logistics real estate today represents critical infrastructure for business growth and the broader economy,” concluded Martin Baláž.
With strategically located assets, a focus on technological innovation and a long-term investment approach, Prologis remains well positioned to support the continued growth of its customers and the Czech economy.
