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


Latest news


New leases

  • Banca Transilvania has renewed its lease for 1,200 sqm in AFI Park Timișoara, in a deal brokered by Cushman & Wakefield Echinox.
  • Revetas Capital has secured four lease transactions totalling 5,700 sqm of gross leasable area at the Bonarka for Business (B4B) office park in Kraków. The transactions include a new lease agreement with telematics firm Geotab, alongside three lease renewals. Geotab has taken up office space in Building E of the complex. Concurrently, KION renewed its commitment to 4,000 sqm of office space within the same building. The remaining two lease renewals were finalized for spaces in Buildings F and D. Cushman & Wakefield represented Geotab, and JLL advised KION on the deals.
  • Sirowa Poland has relocated its office in the revitalised mixed-use Centrum Praskie Koneser complex. The international distributor of cosmetic and pharmaceutical brands leased 958 sqm in Building P at the development, in a deal brokered by Savills.

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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