Take-up on the Budapest industrial market added up to 102,410 sqm in Q1 2022, which marks a 130% increase compared to the same period of the previous year, the Budapest Research Forum (BRF) reports.
In Q1 2022, Prologis Park Budapest - Sziget II DC1A was handed over with 11,460 sqm of new space. The total modern industrial stock stood at 2,812,510 sqm at the end of the first quarter. Due to the annual size revision, there was a positive change of 35,210 sqm in the speculative stock, and 3 buildings previously not examined by BRF are now part of the speculative stock, meaning 31,980 sqm.
Total demand amounted to 125,260 sqm in Q1 2022, indicating a 53% increase in the volume measured in the corresponding period of the previous year. Pre-leases dominated the demand with a share of 43%. Renewals in the existing stock accounted for 18%, while new leases reached 29% share. The share of expansions in the quarterly demand reached 10%.
19 leasing transactions were recorded in Q1 2022 with an average transaction size of 6,590 sqm – five of them were signed for more than 10,000 sqm. The majority of leases were still signed in big-box logistics parks, as the city logistics stock registered only two agreements. The largest transactions during the quarter were preleases: one for 19,300 sqm in HelloParks Fót FT1 building and the other 18,030 sqm deal was signed in CTPark West BIA9.
The vacancy rate at the end of Q1 2022 stood at 4.17% showing a 1.0 percentage point increase q-o-q and a 1.6 percentage point increase y-o-y. At the end of the first quarter, a total of 117,180 sqm logistics area stood vacant, and there are seven existing schemes that have availability of more than 5,000 sqm. Net absorption was a negative value at the end of the first quarter, meaning that the occupied areas decreased by 18,970 sqm.
The members of BRF continue to survey the industrial speculative real estate stock outside of Greater Budapest. We have currently identified 120 buildings, representing 1,299,900 sqm. The size of the identified vacant areas is 50,750 sqm, resulting in a vacancy rate of 3.9%
The Budapest Research Forum (BRF) comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL, and Robertson Hungary.
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