New industrial real estate supply up 32,500 sqm in Q4
Image by Pixabay
With the handover of three developments in the last quarter of 2016, the supply of new industrial real estate in Hungary increased by 32,500 square meters, according to a press statement sent to the Budapest Business Journal by the Budapest Research Forum (BRF).
The modern industrial stock in Budapest and its surroundings stood at 1,934,950 sqm at the end of Q4 2016.
The three new developments include Goodman Gyál Logistics Center’s new building (21,700 sqm), Airport City G (7,400 sqm), and the extension of the Bunzl Warehouse in Biatorbágy (3,400 sqm). Two industrial parks’ area were reduced due to owner occupation, the BRF added.
Total leasing activity amounted to 133,460 sqm in the last quarter of last year, which marks a 58% increase on the previous quarter and a 64% raise on a yearly basis. Renewals accounted for 39% of the total take-up, while the share of new lease agreements made up 23%, and expansions 5%. Three large pre-leases were signed during the quarter, totaling 44,520 sqm and representing 33% of the total demand in Q4 2016.
The BRF registered 27 industrial transactions in the fourth quarter, of which six lease agreements exceeded 10,000 sqm. The average deal size was 4,943 sqm, 81% higher than the last quarter’s result.
Some 97% of leasing activity was recorded in logistics parks, where the average deal size was 5,630 sqm. The average deal size in city logistics schemes equated to 1,000 sqm.
The largest lease was signed at Inpark Páty, a pre-lease agreement for 23,400 sqm. The largest new lease was signed at Prologis Park Budapest-Sziget, for 13,730 sqm. The largest renewal was a 21,800 sqm deal at Bilk (the Budapest Intermodal Logistics Center), while the largest expansion of 2,100 sqm took place at Prologis Park Budapest-Sziget.
The vacancy rate declined by 0.8 percentage points quarter-on-quarter, reaching 8.1% at the end of Q4 2016. Space of a total 155,970 sqm is currently vacant, but there is no scheme offering more than 10,000 sqm available adjacent space.
Net absorption remained positive over Q4 2016, amounting to 38,990 sqm.
The Budapest Research Forum comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.