No new completions on the Budapest office market

11
Jul
2017
News - No new completions on the Budapest office market #BRF #Budapest #Hungary #office #report

by Ákos Budai | Office

The Budapest office market vacancy rate has decreased to 8.6% in Q2 2017, which is the lowest rate ever on record.  Renewals were the major driver of the leasing activity while no new buildings were completed in the quarter. The Budapest Research Forum published its newest figures.

No new office buildings were completed in Q2 2017. The total Budapest office stock totalled 3,346,735 sqm. The total stock comprises 2,682,155 sqm of Class A and B speculative and 664,580 sqm of owner occupied buildings.

The vacancy rate has continued to decrease by 0.6 pps quarter-on-quarter to 8.6%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded on the South Buda submarket (3.1%), whilst the Periphery submarket registered again the highest figure (33.1%).

Demand in Q2 2017 increased by 47% compared to the previous quarter, reaching 98,730 sqm. Renewals were the major driver of the leasing activity with 38.5% share. In the second quarter of 2017 new lease agreements were represented by 32.9%, expansions accounted to 9.9%. Pre-leases showed a higher share compared to previous periods with 18.8%. There was no owner occupation registered during the period.
 
According to BRF, 178 deals were closed in Q2 2017, with an average size of 555 sqm. In terms of submarkets, Váci Corridor had the highest leasing activity, representing more than 34% of the total demand, followed by South Buda (25%) and Central Buda (13%) submarkets.

The largest deal of the quarter was a renewal in Infopark D office building for more than 7,000 sqm. This was followed by a renewal in Átrium Park for 6,710 sqm. The largest pre-lease was signed in Office Garden III, extending to over 4,630 sqm.
 
The quarterly net absorption totalled 19,265 sqm in Q2 2017.
 
The Budapest Research Forum (BRF) comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary. 

BRF Budapest Hungary office report


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  • International retailer MR.DIY has joined the tenant mix of the Plejada Shopping Centre in Sosnowiec. Its new 700 sqm store will significantly enhance the shopping centre’s offering of household products and everyday essentials. Cushman & Wakefield is responsible for the leasing and comprehensive management of the property.
  • Hotspot Workhub, the flexible workspace operator, has renewed and expanded its presence within The Mark office building, owned by CPI Property Group. The lease deal for 2,550 sqm was brokered by iO Partners Romania.
  • Foundever has doubled its footprint to 3,500 sqm within the Bucharest-based Campus 6.3 office building, owned by CPI Romania. Cushman & Wakefield Echinox brokered the deal.

New appointments

  • Katarína Brydone, Jana Vlková and Vendula Maršová have been appointed as the first Equity Partners of Colliers’ Czech business. Brydone brings more than 20 years of experience in international real estate. Vlková has more than 25 years of experience in commercial real estate. Maršová, Partner and Head of Valuation and Advisory Services, brings more than 16 years of experience in real estate valuation and advisory.
  • BNP Paribas Real Estate Poland has expanded its Industrial and Logistics Agency team with the appointments of Joanna Choromańska, formerly of JLL, and Bartosz Wilczyński, previously with CBRE. The new hires bring a combined 34 years of experience in sector sales, lease negotiations, and build-to-suit project delivery to support the division's ongoing growth.
  • Speedwell has expanded its industrial and logistics team with the appointment of Valentin Achim as Leasing and Property Manager for Industrial Developments. Achim brings extensive experience in coordinating commercial and operational activities within the logistics and industrial sectors. In his new role, he will oversee the development and expansion of the company's Spaceplus platform.


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