Budapest modern industrial stock up 40,010 sqm in Q1
Image by Pixabay
The total modern industrial stock in Budapest and its surroundings stood at 2,286,970 sqm at the end of Q1 2020, up 40,010 sqm compared to the previous quarter, according to data by the Budapest Research Forumʼs (BRF).
Image by Pixabay
BRF, which comprises CBRE, Colliers International, Cushman & Wakefield, ESTON International and, JLL and Robertson Hungary, says that the increase was a result of the completion of two projects: BUD Cargo City (8,700 sqm) and CTPark West (31,320 sqm).
Total demand amounted to 79,660 sqm in Q1, a 5% year-on-year decrease. Compared to Q4 2019, the decrease was 10%.
Lease renewals accounted for an outstandingly high ratio, reaching 85% of the quarterly volume, followed by new leases with a share of 10%. Pre-lease stood for 5% and expansions stood for 0.2% of the quarterly figure. Takeup excluding renewals added up to 11,840 sqm, down 13% year-on-year.
Some 19 leasing transactions were recorded in Q1, out of which three agreements were signed for more than 10,000 sqm. The average transaction size came to 4,190 sqm.
About 96% of the transaction volume was recorded in logistics parks, with an average transaction size of 5,470 sqm.
The remaining 4% of the transactional volume was registered in city logistics parks, reaching an average transaction size of 630 sqm which consists of an average transaction size of 1,000 sqm in case of warehouse space and an average transaction size of 235 sqm in case of office space.
The two largest transactions in Q1 were renewals in the building of Batta Park on 28,590 sqm and the other was in Prologis Park Budapest M1 on 15,880 sqm.
The vacancy rate at the end of the quarter came to 2.8% representing in a 0.97%-point decline quarter-on-quarter, and a 0.28%-point decrease year-on-year. At the end of Q1, a total of 63,830 sqm stood vacant.
BRF says that there is only one existing warehouse with available space of more than 5,000 sqm.
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