The vacancy rate on the Budapest industrial market declined 2.2 percentage points q-o-q, reaching a record low of 5.9% at the end of Q1 2017. The Budapest Research Forum published its quarterly industrial market analysis.
In the first quarter of 2017 four developments were handed over increasing new supply by 40,230 sqm, including Budapest Dock Szabadkikötő Phase II and III (19,200 sqm), and two buildings of Prologis Park Budapest-Sziget (21,030 sqm). One industrial park was deleted from stock due to owner occupation.
The modern industrial stock in Budapest and its surroundings stands at 1,961,480 sqm at the end of Q1 2017.
BRF registered 25 industrial transactions in the first quarter, out of which one lease agreement reaches 10,000 sqm. The average deal size was 2,864 sqm which is in line with the average level of the previous five Q1 periods.
The largest pre-lease was signed in CTP-Biatorbágy, for 10,000 sqm. The largest new lease was signed in Mile Logistics Center for 8,365 sqm. The largest renewal was a 9,760 sqm deal in Prologis Park Budapest-Gyál and the largest expansion took place in Akácliget Logistics Center at 3,550 sqm.
Net absorption remained positive over Q1 2017 and amounted to 67,346 sqm.
The Budapest Research Forum (BRF) comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary. BRF analyses modern industrial properties located in Budapest and Pest County, completed after 1995 for letting purposes, comprising a minimum of 2,000 sqm space in terms of city-logistics or minimum of 5,000 sqm space in terms of logistics park warehouses. The industrial stock excludes owner occupied buildings.
