Atenor and its contractor, Péter Építő have topped out Aréna Business Campus Building “A”. The first eight level phase of the complex will provide 20,000 sqm of space, due to be handed over in the second quarter.
The deep construction works of the second phase has already started, with a further 15,000 sqm of office space due to be delivered in mid-2021. The construction of buildings “C” and “D” are planned to be completed in two-to-three years and will deliver a total of 72,00 sqm of office and retail. As much as 40% of the first phase is preleased.
The development of such a large-scale speculative project reflects both the positive indicators in the Budapest office market and the long-term confidence of Atenor in its ability to let and sell a project onto investors.
Atenor has experience in developing large-scale office and residential projects in Belgium, France, Germany, Hungary, Luxembourg, Poland, Portugal and Romania.
The most recent Budapest office delivery was the 16,000 sqm Balance Hall by CPI Group, the latest edition to the Balance office park in the Váci office corridor. Total modern office stock in Budapest now stands at about 3.7 million sqm, of which around 3 million sqm is speculative class “A” and “B” space, according to the Budapest Research Forum (comprising CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL, and Robertson Hungary).
The overall vacancy rate has fallen to a new record low of 5.6%, albeit representing only a slight quarter-on-quarter reduction. Total leasing demand for 2019 amounted to 637,00 sqm, which is the highest annual volume on record according to the BRF. The largest prelease on record was the 27,300 sqm letting of the whole of Pillar office development, under construction by GTC in Váci út.
A functioning speculative office market is also finally showing signs of developing outside of Budapest as Garda Ingatlan Fejlesztő Befektetési Alap has signed a 2,000 sqm letting with EPAM Systems at the 22,000 sqm, LEED “Gold” accredited Forest Offices in Debrecen.
“Securing the first tenant in a newly developed office building is always a pleasure. Not many multinational companies choose countryside locations in Hungary, so this transaction is outstanding for more reasons. We are happy that we were able offer a suitable option to satisfy EPAM’s expansion and relocation needs within the same city,” commented Krisztina Enzsöl, senior office negotiator at Cushman & Wakefield, who worked on the transaction.