C&W: Logistics park rental activity picks up in Q2
press release
Demand for quality space remained robust on the industrial real estate market over the second quarter of the year in Hungary, mostly driven by renewals, but occupiers are still restricted by the low amount of available space suitable for their needs, according to a report issued by Cushman & Wakefield yesterday.
The record low levels of availability have seen developers look to break ground on a series of speculative developments, which will be completed in the second half of the year, C&W says.
Although total market size remained unchanged in the second quarter of the year at 1.89 million sqm, due to increase in vacancy, net absorption was negative for the first time since Q3 2013, totaling 20,650 sqm, the report says. Vacancy rate currently stands at 9.7% showing a minor increase from the all-time record low Q1 2016 level.
Rents have stabilized and lease terms are returning to pre-crisis levels, incentives are being withdrawn and rental increase is anticipated in the short-to-medium term, the report says.
Demand in the second quarter saw 92,070 sqm of transacted space. Demand was reportedly driven by renewals (65%), with the vast majority signed in logistics parks. Pre-leasing accounted for 19% of the total demand, the report said.
Four schemes extending to 57,000 sqm of logistics space are currently under construction and will be delivered in the second half.
ADVERTISEMENT
Mapei Targets 6% Higher Revenue This Year
Parliament Negates Mandatory Membership in MOK
Hungary to Roll out Online Price Monitoring System
Meet the Expat CEO of the Year Nominees
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
