Croatia’s Warehouse Vacancy Falls to 1%

Vacancy in Croatia’s modern industrial and logistics property market fell to 1% in the second quarter of 2026 from 2.1% three months earlier. No new space was added to the monitored rental stock, while reported take-up reached 18,417 square metres. Prime headline rent remained at €6.50 per square metre a month, and the combined volume of projects under construction and in planning approached 808,000 square metres. Almost 80% of that pipeline, however, remains at the planning stage.

Croatia’s modern warehouse supply remains limited

The stock of modern Class A industrial and logistics premises available for lease reached 450,065 square metres at the end of the second quarter. Class A generally refers to modern buildings with appropriate loading infrastructure, ceiling height, technical systems and access for heavy vehicles.

A 1% vacancy rate implies approximately 4,500 square metres of theoretically available space. The effective choice may be smaller because an available unit may not meet an occupier’s requirements for location, size, configuration or power capacity.

No new premises were delivered into the monitored rental stock during the quarter. This does not establish that no private or owner-occupied warehouse was completed anywhere in Croatia. It refers to the modern leasing market covered by the research.

CBRE separately confirmed that no industrial and logistics projects were completed in Zagreb during the second quarter and said the development pipeline would remain an important factor shaping the market.

Zagreb County secured most leasing transactions

Four transactions were recorded during the quarter. Three took place in Zagreb County, which surrounds the capital, while one was signed within the City of Zagreb.

Demand is moving toward suburban locations where larger sites, motorway access and fewer restrictions on truck movements are available. Large logistics and manufacturing facilities are harder to accommodate within the city because of land prices, density and transport requirements.

Manufacturing companies made the most notable contribution, particularly businesses in the chemical and building-materials sectors. Selected deals included 7,300 square metres leased by Quattro logistika and 5,000 square metres at RC Zone Samobor.

Those two examples account for 12,300 square metres of the reported quarterly figure of 18,417 square metres. The map presents a selection of deals rather than a complete transaction list.

The report uses conflicting take-up terminology

The summary page describes the 18,417-square-metre figure as net take-up. Net take-up normally measures newly occupied space after subtracting premises that tenants have vacated.

A chart on the following page labels the quarterly series as gross take-up, which generally counts leasing activity without deducting returned space.

The research does not explain the difference or provide a separate figure for space vacated during the quarter. It is therefore more accurate to describe 18,417 square metres as reported take-up or leasing activity rather than stating conclusively that it represents net absorption.

The chart indicates that second-quarter activity exceeded the first-quarter result but remained below the peak recorded at the end of 2025.

Warehouse rents remain near their recent peak

Prime headline rent stayed at €6.50 per square metre a month, while the reported average rent was €6.25.

Quoted rents in the City of Zagreb ranged from €6.50 to €7.50. The range was €6.50–7 in Adriatic Croatia, €6–6.50 in Northern Croatia and €5.50–6 in Pannonian Croatia.

Headline rent does not necessarily equal the occupier’s effective cost. The final amount may depend on indexation, lease length, service charges, guarantees and the cost of fitting out the premises.

Stable prime rent combined with a 1% vacancy rate confirms limited availability, but it does not prove that rents will accelerate. Some occupiers may wait for projects under construction or search for less expensive locations outside Zagreb.

Construction pipeline reaches almost 165,000 square metres

Projects under construction totalled 164,913 square metres, equivalent to approximately 36.6% of the existing Class A rental stock.

Selected major developments included Logexpert’s 58,000-square-metre project in Vukovina, 43,000 square metres at RC Zone Samobor and 39,000 square metres at LOGIS near Sveta Helena. Together, the three projects represent 140,000 square metres.

Completions should expand occupier choice, especially in the wider Zagreb region. The full construction pipeline may not become vacant space because some premises may already be pre-let or designed for specific users.

108 REAL ESTATE Managing Director Dario Tomljenovic expects completions to loosen availability in selected submarkets, but does not anticipate a meaningful increase in the national vacancy rate in the near term.

Planned projects exceed the existing market

A further 642,834 square metres was at the planning stage. Combined with projects under construction, the potential pipeline reached 807,747 square metres, almost 1.8 times the existing rental stock.

The largest project shown on the map was a 312,000-square-metre Accolade development. Other schemes included 85,000 square metres at RC Zone Klinča Sela, 42,000 square metres for VGP in Dugopolje, a 28,500-square-metre Logexpert project and an 18,500-square-metre cross-dock facility in Zadar.

Planned space accounts for 79.6% of the total pipeline. These projects should not be treated as guaranteed future supply. They may be phased, reduced, postponed or cancelled because of permitting, infrastructure, financing or leasing conditions.

The 807,747-square-metre figure demonstrates the scale of developer interest, but it does not mean Croatia’s modern warehouse stock will nearly triple. Actual supply growth will depend on construction starts and the share of projects backed by pre-lease agreements.

Zagreb remains Croatia’s principal logistics hub

Most existing space is concentrated in and around Zagreb. The capital region combines the country’s largest consumer market with distribution infrastructure and motorway connections toward Slovenia, Hungary, Serbia and the Adriatic coast.

Developers and investors are also paying closer attention to areas near Rijeka and Split. Coastal demand is supported by ports, tourism, retail distribution and the need to supply Croatia’s geographically elongated market.

Regional markets are smaller and more dependent on individual anchor tenants. Speculative development without pre-leasing may therefore involve greater risk outside the capital region.

Road capacity, labour availability, public transport, electricity supply and delivery times will influence the competitiveness of new locations alongside quoted rent.

Industrial production provides demand support

Croatian industrial production increased by 4.3% year on year in June. Output rose by 5.3% from May after seasonal and working-day adjustments.

Manufacturing production was 4% higher than a year earlier, while output of intermediate goods increased by 14.8%.

Stocks of finished industrial goods were 9.8% higher than in June 2025. Rising inventories may increase short-term storage requirements, although they can also indicate slower sales of certain products.

Industrial employment fell by 5.3% year on year, while labour productivity increased by 6% during the first half. The statistics show that output rose while employment declined, but do not establish how much of that change resulted from automation, restructuring or the closure of less efficient capacity.

Retail activity shows no exceptional acceleration

Real retail turnover increased by 0.4% year on year in June, extending the annual growth sequence to 39 consecutive months. Turnover was 1.9% higher in the first half of 2026.

Food, beverage and tobacco sales increased by 2.9%, while non-food sales rose by 1.5%. Automotive fuel sales declined by 12.9%.

Internet and mail-order retail sales fell by 3.2% year on year in June but remained 3.3% higher during the first six months as a whole. The previous version did not distinguish the monthly and half-year comparisons clearly enough.

The data do not support a claim of exceptional e-commerce growth during the second quarter. Warehouse demand was generated by a broader combination of manufacturing, contract logistics, retail distribution, vehicle-sector businesses and online fulfilment.

Croatia’s economic growth slows

Croatian gross domestic product expanded by 2.2% year on year in the first quarter of 2026, down from 3.9% in the final quarter of 2025.

Seasonally adjusted GDP was unchanged from the preceding quarter. Gross fixed-capital formation increased by 2.5%, while exports of goods and services declined by 1.6%.

Manufacturing gross value added rose by 1.1%, construction by 2.8%, and trade, transport, accommodation and food services by 1.8%.

The figures are consistent with positive but slowing demand for industrial property. They do not indicate a broad economic boom capable of automatically absorbing the entire proposed development pipeline.

Inflation keeps operating costs elevated

Consumer inflation eased from 4.8% in March to 4.5% in June. Prices declined by 0.4% from May.

Housing, water, electricity, gas and other fuels were 12% more expensive than a year earlier. Energy prices increased by 13.2%, while services rose by 8.1%.

Higher energy and service costs can increase warehouse operating expenses, transport costs and equipment maintenance. Inflation may also support nominal rent through annual indexation clauses.

At the same time, higher operating costs restrict occupiers’ capacity to accept further rent increases because companies must also cover wages, insurance, fuel and financing expenses.

Construction activity begins to lose momentum

Construction output was 1.9% higher in May than a year earlier but fell by 0.1% from April after seasonal adjustment.

Work on buildings increased by only 0.6% year on year and declined by 0.6% during the month. Total construction activity was 2.6% higher in the first quarter than a year earlier.

The moderation does not mean that development has stopped. It shows that Croatia’s large proposed industrial pipeline must still pass through permitting, financing and construction before it becomes usable stock.

Project delays would keep vacancy low for longer. Several simultaneous speculative completions without sufficient pre-leasing could instead cause availability to rise rapidly in individual locations.

As International Investment experts note, the 1% vacancy rate and absence of new completions demonstrate a current shortage of high-quality warehouses, but they do not make every proposed project automatically attractive. Space under construction equals only 36.6% of the existing stock, while almost 80% of the announced pipeline remains at the planning stage. The market can absorb part of the new supply, but four transactions and 18,417 square metres of quarterly activity form a limited demand base for projects exceeding 800,000 square metres. Developments supported by pre-leases, several potential occupiers, motorway access and sufficient power infrastructure appear the most resilient. Schemes without anchor tenants may face stronger competition if several large phases are delivered at the same time.

FAQ: Croatia’s Industrial Property Market

What is Croatia’s warehouse vacancy rate?

Vacancy in modern Class A industrial and logistics premises fell to 1% in the second quarter of 2026 from 2.1% three months earlier.

How large is Croatia’s Class A warehouse market?

The monitored stock of modern Class A premises available for lease reached 450,065 square metres.

How much warehouse space was taken up in Q2?

The report gives a figure of 18,417 square metres. Because it labels the number as both net and gross take-up in different places, it is safer to describe it as reported leasing activity.

How much does warehouse space cost in Zagreb?

Quoted rents in the City of Zagreb ranged from €6.50 to €7.50 per square metre a month. National prime rent was €6.50 and the reported average was €6.25.

How much logistics property is under construction?

Projects under construction totalled 164,913 square metres. Another 642,834 square metres was at the planning stage.

Will every planned project be completed?

Completion is not guaranteed. Projects depend on permits, financing, infrastructure connections and occupier demand.

Where are most transactions taking place?

Three of the four second-quarter transactions were in Zagreb County, while one was signed within the City of Zagreb.

Which industries are creating warehouse demand?

Demand comes from manufacturing, contract logistics, retailers, distributors, online fulfilment and vehicle-sector companies. Chemical and building-materials businesses were notable contributors during the quarter.

Could Croatia develop excess warehouse supply?

The risk would increase if several large speculative projects were completed simultaneously without sufficient pre-leasing. Most of the announced pipeline is still at the planning stage.