In Q3 2022, the speculative industrial stock in Greater Budapest was expanded by eight buildings, a total of 145,390 sqm, while four new buildings were handed over in Regional Hungary, with a total of 33,380 sqm, Budapest Research Forum (BRF) reports.
The stock in Greater Budapest reached 3,076,770 sqm, while further a 1,413,430 sqm of space is located in Regional Hungary. The largest new building in Q3 was CTPark Vecsés VCS3 with 32,690 sqm. Inpark Gyula I. was handed over with 13,580 sqm.
The vacancy rate at the end of Q3 2022 stood at 4.9% in Greater Budapest (1.5 pps decrease q-o-q and a 1.4 pps increase y-o-y). At the end of the third quarter, a total of 149,400 sqm logistics area stood vacant, and there were 8 existing schemes that had availability of more than 5,000 sqm. In Regional Hungary there was 60,670 sqm of vacant space, which equals a 4.3% vacancy rate.
Total demand in Greater Budapest amounted to 218,220 sqm in Q3 2022, indicating a 52% increase in the volume measured in the corresponding period of the previous year. Take-up excluding renewals added up to 170,680 sqm, which marks more than two and a half times the higher volume that was registered in the same period last year. New leases dominated the demand with a share of 72%. Renewals accounted for 22% of gross take-up, while pre-leases and expansions both reached a 3% share.
36 leasing transactions were recorded in Greater Budapest in Q3 2022 with an average transaction size of 6,060 sqm – six of them were signed for more than 10,000 sqm. The majority of the leases were still signed in big-box logistics parks, as the city-logistics stock registered only two agreements.
The largest transactions in the quarter were new leases: one in CTPark Budapest West BIA4 (28,330 sqm), and one in Prologis Park Budapest – Sziget DC5 (20,810 sqm). Quarterly net absorption in Greater Budapest was 187,330 sqm in Q3 2022.
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