Prologis has completed a 10,600 sqm speculative facility at Prologis Park Budapest-Harbor, located 12 km to the south of central Budapest. The company says it has a Hungarian portfolio approaching 600,000 sqm with close to 100% occupancy.
The total CEE Prologis portfolio consists of 4.2 million sqm of space in Hungary, Poland, Czech Republic and Slovakia, with the company is aiming for BREEAM accreditation for all its developments.
Prologis Park Budapest-Harbor DC Building 12 has been submitted for BREEAM “Very Good” accreditation. Prologis says the complex is the first Building Information Modeling-designed logistics center in CEE. The system is a 3D model-based process that allows architectural, engineering and construction professionals to more efficiently plan, design, construct and manage buildings and infrastructure.
According to Rita Lippai, project manager for Prologis Hungary, the complex includes such features as: high-graded insulated wall panels and roof systems that, together with gas fired heaters, can cut heating costs by 30%; energy efficient LED lighting and large skylights that can reduce electricity costs by 46% compared to standard lighting; and a smart metering system that helps optimize water, gas and electricity consumption in the building. The new facility has a ten meter clear height, and 14 docks and the logistics park provides electric vehicle charging points.
“Sustainable development and energy-efficient property management are now more than just ‘nice to have’ [features]; many of our customers expect them. There is a greater focus on ‘smart building’ solutions, such as lighting upgrades [to LED] or real time utility metering systems,” says László Kemenes, country manager at Prologis Hungary.
Logistics developers are developing increasingly sophisticated industrial complexes in reaction to developing tenant requirements such as automized warehouses and a growing concern with the working environment in tight labor markets.
All the major industrial park developers and operators are seeking third-party sustainability accreditation from bodies such as BREEAM and LEED as tenants are looking to save on utility costs and developers need to comply with tighter international environmental regulations.
The newly completed Building 12 has the potential for development of a further 13,600 sqm in one further phase.
“Speculative developments represent confidence in a given market and strong fundamentals stimulate that form of new supply,” explains Kemenes.
“The increasing number of these developments has been driven by low vacancy and strong demand throughout the CEE region, and they are useful in balancing supply with the volume of given demand on the market. A more disciplined approach to speculative development has contributed to a better-paced increase in new supply that is more easily absorbed by demand,” he adds.
Prologis has a policy of development and acquisition throughout the region. The company purchased the Harbor Park Logistics Center from a consortium of Crow Holdings, Lehman Brothers, Heitman International and Wallis Real Estate for a reported EUR 70 million in 2005.
The low availability of contiguous industrial space in the Budapest area and rising demand has resulted in a record low vacancy rate of 2.4% in a market with an estimated total stock of more than two million sqm according to Cushman & Wakefield.
“We have some promising discussions and hope to conclude the first deal soon and expect to be fully let in the coming months. We have additional development land in Prologis Park Budapest-Harbor for another building […]. In addition, we have earmarked land options for the extension of all our other parks in the Budapest area,” Kemenes concludes.