The deal represents a significant prelease for the speculative development project. Agora will eventually consist of around 136,000 sqm of office, retail and service space; the long-term, phased development project is scheduled to be completed in 2023.
The first speculative phase of the development (for which HB Reavis has applied for BREEAM “Outstanding”, BREEAM “Communities” and WELL “Gold” accreditation) consisting of Agora Tower and Agora Hub will deliver around 65,000 sqm of office, retail and service space by 2020. The project has been designed by the London-based Make Architects and the Hungarian Finta and Partners Architect Studio Ltd.
As with most current Budapest office projects, Agora is located at a prominent transportation intersection on a three hectare site with direct access to the Árpád híd metro station. HB Reavis and the architects who worked on the project stress the role of the public squares and services that can be utilized by local residents and therefore integrate the project into its surroundings.
With regard to the interior, HB Reavis is using its regional in-house interior design and fit-out group, Origameo for the creation of the work environment, based on consultations and research conducted with Raiffeisen Bank.
Jan Hübner, country CEO at HB Reavis Hungary, comments that construction of a further 60-70,000 sqm phase of Agora Budapest could go ahead in 2020.
With regard to overall supply, 35,000 sqm of office space is scheduled to be delivered in Budapest this year with a further 125,000 sqm planned for 2019 according to Cushman & Wakefield. An estimated 110,000 sqm of space was delivered in the third quarter and high demand has pushed vacancy to a record low of 6.4%, with rents estimated at EUR 24 per sqm per month in the CBD and EUR 15.25 in the Váci corridor.
This is the second Budapest office project by HB Reavis after the 21,000 sqm Váci Corner, that was successfully let and subsequently sold to Zeus Asset Management in 2016. The company has office, retail and logistics developments in Budapest, Bratislava, Warsaw, Prague, Brno and London and is also looking to extend its activities to Germany.
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