The Viennese industrial and logistics market is going through a phase of structural shifts. After two challenging years, there is a slight phase of stabilization this year, but overall the environment is dominated by geopolitical uncertainty and subdued demand due to the economic situation. “The conflict in the Middle East is another factor that is delaying hope for an upswing and a turnaround – as we know, the picture was already sobering beforehand,” says Felix Zekely, Managing Director of Optin Immobilien.
The geopolitical tensions have reached the logistics market, “even if this cannot always be seen in immediate figures,” says Alexandra Fischer, industry/logistics team leader at Otto Immobilien. The ongoing unrest is putting central trade and transport routes under massive pressure.
This leads to longer delivery times, higher transport and insurance costs and increasing uncertainty along supply chains. Elisa Stadlinger, Head of Commercial Real Estate at ÖRAG: “The logistics market reacts sensitively to geopolitical risks, as supply chains, trade flows, transport costs and industrial production directly depend on them.”
Many companies are therefore relying on more security warehouses, alternative transport routes and greater diversification of their supply chains. “What we also clearly feel is the uncertainty surrounding important decisions,” adds Fischer: “Lease contract negotiations are dragging on, decisions are being postponed.” When location decisions are made, they are made more selectively.
Tenants nationwide are currently seeing a wide range of options as well as attractive conditions and incentives. “This opens up new scope for action for companies, while providers have to differentiate themselves more,” says Fischer. The large-scale rentals that have characterized the market in recent years have become rarer. Inquiries for large hall areas of 5,000 square meters or more have declined, while the segment of around 200 square meters and above has gained significant momentum. “Companies are acting more cautiously and are looking for smaller, flexible spaces rather than large new construction projects,” says Stadlinger. “Longer-term effects will probably only become clearer on the overall economic development in the coming quarters.”
What is already evident: an increased movement towards the development of business parks with smaller units – from 1000 to 2500 square meters, Zekely states: “The concept is not new – there are established providers with Squarebizz and Flexiparks. From today’s perspective, some will be added.”
The uncertainty is already evident when it comes to renting space, although things haven’t gone smoothly in the past. The demand for modern logistics space in 2025 remained far below expectations. Zekely shows: “In 2023, 250,000 square meters of space were rented in the greater Vienna area, in 2025 only just over 100,000, but around 20,000 square meters of this was for a B product in the IZ NÖ Süd to a retailer.”
While demand is losing momentum, it is encountering growing supply from the strong completion years of 2024 and 2025. Large-volume A-class new build products – in Vienna North, East and South – are standing empty and struggling for users. In addition, “consolidations, bankruptcies and restructuring ensure that existing logistics and production areas come onto the market in addition to the new ones,” says Stadlinger. At the same time, sublease offers are being offered on a large scale on the market. “A sign that logistics service providers are reducing their capacities, probably also in response to the population’s reduced purchasing power,” says Fischer.
As a result, the vacancy rate on the logistics market rose to a high level and was almost ten percent at the end of the year. In the industrial real estate segment, demand for suitable space is even lower due to the economic situation. Due to the high vacancy rate, owners also decide to repurpose the halls. This includes leisure concepts such as karting, paddle or bouldering or B2B wholesale concepts. “In the latter, price sensitivity is not as pronounced as in the area of logistics service providers,” says Zekely.
