CTP Undertakes new Speculative Development
The industrial market continues to record positive data with the CEE developer and industrial park operator CTP beginning work on a 30,000 sqm logistics facility at CTPark Tatabánya. The BREEAM accredited speculative facility is scheduled to be delivered next year.
This reflects three growing trends: for developers to construct outside of the capital, as is common elsewhere in the CEE region, the increasing amount of speculative development and demand for sustainability accredited space at the higher end of the industrial market.
The total modern industrial stock in the Budapest area stands at a little more than 2.5 million sqm according to the Budapest Research Forum, which comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary. What space is available consists mainly of office space at logistics centers; there is very little contiguous logistics space.
“Total demand in the Greater Budapest area in the third quarter equaled 143,000 sqm, renewals represented a higher share of take-up with 77,000 sqm, while the remaining 65,000 sqm was made up of net take-up,” comments Cushman & Wakefield.
“Among net take-up, pre-lease has the highest share with 57%, followed by new leases with 37%. The remaining 6% was represented by expansions,” the consultancy says of the Q3 industrial activity. It has traced eight buildings handed over so far this year, representing 172,000 sqm of space.
Cushman & Wakefield expects a further 162,000 sqm of space to be delivered to the market by the end of the year. Total stock is put at 3.75 million sqm. The vacancy rate is 6% in the countryside and 4.3% for the whole of Hungary. Around 367,000 sqm of space is under construction in the Budapest area and 106,000 sqm in the countryside for a total of 473,000 sqm across the country.
CTP has recently signed a purchase agreement for a new 25,000 sqm building in Szombathely. Developer-led projects have been rare in regional cities in recent years despite high demand in the logistics and industrial sectors. CTP and other builders are committed to developing industrial parks in what they see as regional hubs in addition to the greater Budapest area.
The new project is the third building at CTPark Tatabánya and brings total space at the complex to 88,000 sqm offering facilities for logistics and industrial purposes, according to Dávid Huszlicska, country manager at CTP Hungary.
The complex is located on a 12.5-hectare site 60 km from Budapest. CTP is a logistics park operator in nine countries with more than 6.6 million sqm of space. The company aims for 10 million sqm of space across the region by the end of 2023.
This article was first published in the Budapest Business Journal print issue of December 17, 2021.
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.