Panattoni has started construction of a speculative 17,300 sqm last-mile logistics warehouse project in Törökbálint, about 12 kilometres from Budapest's city centre. The launch of Panattoni Park Budapest City West follows the company’s market debut in Hungary in 2021 with the acquisition of two land sites totalling 100,000 sqm near the capital.
The Panattoni Park Budapest City West project comprises four modern logistics facilities ranging in size from 3,350 sqm to 5,550 sqm as well as 20 dock levellers, 55 parking spaces and five Electric Vehicle charging points. Panattoni is targeting zero carbon emissions from 2025 and a BREEAM ‘Very Good’ sustainability certification for the property. Budapest-based Hungarian construction firm Market Építő Zrt. has been selected as the general contractor for the project.
László Kemenes, Head of Panattoni Hungary, said: “The local logistics real estate market is far less developed than in neighbouring countries and the last-mile segment in and around Budapest is particularly underserved. With this development, we are focusing on occupiers seeking high-quality space in smaller sized lots, located very close to the city." The Park will offer units starting from 1,000 sqm upon completion in Q1 2023.
Hungary’s distribution centre market is still underdeveloped, with average logistics warehousing space just 250 sqm per 1,000 inhabitants, compared to 900 sqm in the Czech Republic and 550 sqm in Poland, or Germany’s 920 sqm per 1,000 inhabitants. Budapest’s logistics market catchment area contains around 3.3 million people inhabitants, roughly similar in size to the other regional centres of Vienna, Bratislava and Zagreb combined. These three cities are all accessible from Panattoni Park Budapest City West within a two to four-hour drive.
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