Hungarian and regional developer Futureal Group has handed over the 25,000 sqm Skypark office building, the latest development at the Corvin Promenade office, retail, residential and leisure project. Skypark has been designed to meet the needs of technology and R&D reflecting the pre-lease that has been concluded.
The BREEAM accredited development, designed by Zoboki-Demeter & Associates, will provide Nokia with an IT and telecommunications R&D center. This is regarded as one of the largest deals in the post-economic crisis period and, as with Wing’s latest projects, is essentially a built-to-suit office deal.
The complex includes restaurants, cafés, kindergarten and a conference center in addition to parking for 170 vehicles. As reflects the demand for sustainable development the “Very Good” certified development provides automated shading technology, which controls sunshine exposure, an electric car charger, a green roof, bicycle storage, changing rooms and showers, as well as energy-efficient mechanical systems.
The tower block is located adjacent to the speculative 15,000 sqm Corvin Technology & Science Park, which will form the latest office phase of the Corvin Promenade project. “With the 22-hectare Corvin Promenade urban development project, we managed to revive a prominent section of Józsefváros; not solely from an architectural point of view, but also from a cultural and economic viewpoint,” said Gábor Futó, founder of Futureal Group.
“Skypark marks a further milestone of this rehabilitation that is transforming the Corvin Quarter into a knowledge quarter. According to our plans, the rehabilitation of the Corvin Promenade will be finished in the next three years, so it will show its final form soon,” he added.
With regard to further pipeline, Futureal plans to develop the Budapest One business park adjacent to the terminus of the Metro 4 line.
This 45,000 sqm project is seen also seen as part of the redevelopment of a road, metro and rail transport hub. The first phase is planned to consist of around 23,000 sqm of office space, but a substantial pre-lease needs to be concluded for construction to commence, according to Futureal.
On Váci út, Futureal is also developing the speculative Advance Tower that will deliver 11,000 sqm of BREEAM accredited space, designed by Mérték architects studio.
There are currently six further Budapest office projects due to deliver this year that will easily meet annual absorption figures of around 150,000 sqm, despite some fears of oversupply that have been expressed.
According to the Budapest Research Forum (comprising CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary), vacancy in the Budapest office market currently stands at 9.5% in a stock of around 3.3 million sqm, a record low.
A lack of development has brought the supply and demand curve more in line, which should support rental growth and investor interest. Most of the office assets currently under construction are expected to be substantially pre-leased before completion.