Vacancy rates reached a record low level on the Budapest office market as a result of modest development activity and strong demand from tenants. The Budapest Research Forum has published its quarterly office market analysis.
Demand in the second quarter of 2016 reached 129,172 sqm of transacted office space, which was 53% higher than in the previous quarter. According to the BRF, 202 lease agreements were signed in Q2 2016, with an average deal size of 639 sqm. Renewals were the major driver of the market with a share of 51%. This was followed by new deals with a proportion of 37%. Expansions accounted for 8%, whereas pre-leases for 4%. No owner-occupied or BTS transaction was registered in this quarter.
BRF registered altogether 26 transactions above 1,000 sqm, 13 renewals, 11 new deals and 2 pre-leases. 9 of these contracts were signed in Váci Corridor submarket, followed by Central Pest and Central Buda. The largest pre-lease transaction (2,100 sqm) was registered in Nordic Light, while the biggest new lease agreement was recorded in Haller Gardens, extending over 2,000 sqm.
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