Total demand on the Budapest industrial market amounted to 59,740 sqm in Q2 2018, marking a 72% decrease over the figure noted in the same period last year. The Budapest Research Forum published its quarterly industrial market analysis.
In the second quarter of 2018, one new building was handed over, a 12,220 sqm warehouse in the next phase of Inpark Páty. The total modern industrial stock in Budapest and its surroundings stood at 2,081,120 sqm at the end of Q2 2018.
Total demand amounted to 59,740 sqm in Q2 2018, marking a 72% decrease over the figure noted in the same period last year and 42% decline compared to the previous quarter. Lease renewals accounted for 46.7% of the quarterly volume, while the share of new leases was 30.8%. Expansions stood for 22.5% of the quarterly volume. No pre-lease agreement was signed in the second quarter of 2018.
18 leasing transactions were recorded in the second quarter, out of which one agreement was signed for more than 10,000 sqm. The average transaction size was 3,320 sqm during the quarter. 93% of all leasing activity was recorded in logistics parks, where the average transaction size was 3,960 sqm, while the average deal size in city logistics schemes equalled 1,090 sqm.
The two largest transactions of the quarter were a lease renewal and an expansion by the same tenant. Sauflon at Prologis Park Budapest – Gyál renewed its contract on 14,110 sqm and expanded with a further 9,760 sqm. The largest new lease agreement amounted to 8,580 sqm and was signed in Prologis Park Budapest - Harbor.
The vacancy rate slightly increased by 0.7 pps q-o-q, to the current 3.5%. At the end of the second quarter, a total of 73,740 sqm area was vacant, and there are only two existing schemes with more than 5,000 sqm of available warehouse space. Net absorption totalled 25,550 sqm in the second quarter of 2018.
The Budapest Research Forum (BRF) comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.