A high level of green building certification has become a requirement for investors and is an advantage in attracting international tenants. A critical new ESG requirement for occupiers is the need for ESG data for reporting purposes.
A shift towards a built-to-suit development model gives the developer more opportunities to develop according to tenant demands and specifications, beginning from consultations in the initial design phase and then working together throughout construction.
HelloParks, part of the Futureal Group, has sold the two Breeam New Construction “Outstanding” warehouses at the HelloParks Páty (22 km west of central Budapest by road) to Erste Real Estate Fund. The buildings offer a combined 84,000 sqm at the mega park, positioned along the M1 motorway in the capital’s western agglomeration.
“Increasingly stringent EU regulations are prompting Hungarian tenants to choose warehouses that support their sustainability goals,” comments Rudolf Nemes, CEO and co-founder of HelloParks.
“Tenants’ requirements from sustainability are currently still rather mixed, but it is definitely starting to become a high priority for them. […] High certification levels are an advantage for attracting international tenants,” says Anna Bencze, head of sustainability at HelloParks.
“ESG reporting requirements have also naturally emerged for our tenants, and one of their key requirements is now the need for receiving ESG data for their own reporting purposes. From a sustainability perspective, the positive outcome of the energy crisis has been that the vast majority of building occupiers have shifted to a much more energy efficient operation, for which they have much better opportunities in a newer, smarter building,” she notes.
“The provision of renewable energy through local production (for example, solar panels or green electricity contracts) is also a daily topic in negotiations. In general, it can be said that sustainability needs related to day-to-day operations are in the foreground, but we are also increasingly seeing more demands from tenants’ own corporate ESG strategies,” Bencze adds.
Across the board, tenants are seeking modern, cost-efficient, and sustainable facilities. Features such as high ceilings, ample dock doors, advanced fire protection, and flexible layouts top the list of requirements. Many also value location, seeking easy access to highways, public transportation, and major consumer markets.
Sustainability credentials, including energy-efficient systems and the potential for on-site renewable energy, are increasingly playing a critical role in site selection, agrees Máté Szoboszlay, business development and investment director at Faedra Group.
Wing and Alteo Energiakereskedő, Alteo Group’s energy trading company, have entered into a strategic cooperation agreement under which Alteo will supply 100% of the industrial properties managed by the developer’s sub-brand, Wing Industrial, with electricity from clean and renewable energy sources.
Alteo will thus continue to support Wing in 2025 in procuring green electricity for the Airport City, East Gate, East Gate PRO and Login business parks. This year, 50% of the total electricity purchased by Wing’s entire corporate group will come from clean and renewable energy sources, marking a significant step forward in sustainability.
The developer says ESG criteria and sustainability are priorities in Wing’s developments. One of the group’s long-term goals is to measure the energy consumption of all its buildings with up-to-date data recording and analysis. Furthermore, Wing aims to modernize existing facilities and progressively develop more energy-efficient buildings that rely on green electricity, focusing on both present-day requirements and tenant’s needs.
There is no question that ESG considerations are reshaping tenant demand and investor expectations. Companies want facilities that minimize carbon footprints and promote resource efficiency, aligning with corporate social responsibility goals and regulatory pressures. Green certifications, renewable energy installations, and advanced energy monitoring systems are, therefore, increasingly becoming a necessity rather than a bonus.
EU Taxonomy guidelines further reinforce these trends, stipulating specific performance benchmarks for new developments. Developers who align with these guidelines may gain an edge in securing favorable financing terms and attracting top-tier tenants. Consequently, solar panels, energy-efficient lighting, and robust insulation are routinely integrated into many new industrial and logistics parks. Likewise, social aspects, such as employee well-being areas, safe working conditions, and inclusive environments, are gaining priority.
ESG-related investments typically require an upfront financial commitment from the developer or landlord, covering design and construction elements such as energy-efficient systems, upgraded insulation, or renewable energy installations. However, these improvements often yield cost savings and operational efficiencies over time, benefiting tenants through reduced utility bills and enhanced working environments. According to Lóránd Gárdonyi, the real estate and customer experience director at Prologis Hungary, the costs are typically shared.
“As landlords, we invest in energy-efficient designs and renewable energy solutions, but customers also contribute, particularly when requesting specialized sustainability features,” he explains. “Every request is different, but we are trying to provide our tenants with some ‘turn-key’ solutions for typical demands such as LED lighting programs, Smart lighting or heat-pump offers. We always strive to increase value by replacing end-of-life technology with current, more efficient and sustainable alternatives; we also see our tenants investing in their own technology to improve their effectiveness.”
In many lease structures, landlords recoup part of the initial ESG investment through slightly higher rent or service charges, justified by the longer-term value-add for tenants. When these features significantly reduce operating expenses or help meet corporate sustainability targets, most tenants view the costs as beneficial. Indeed, many are willing to share in the investment if it leads to demonstrable savings or reputational gains.
Zsuzsanna Hunyadi, director of leasing and customer experience at Prologis Hungary, says logistics customers prioritize location, accessibility, and efficiency. She says a high “clear height,” optimized dock ratios, and sustainability features are key.
In contrast, industrial tenants often need more customized spaces, such as reinforced flooring, enhanced power supply, and tailored production layouts. ESG considerations and cost-efficiency are increasingly important across both segments of the sector. In the slightly longer term, logistics players focus on automation and scalability, while industrial customers require flexibility to accommodate technological upgrades.
This article was first published in the Budapest Business Journal print issue of April 4, 2025.
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