ExxonMobil Signs for 27,000 sqm at GTC Pillar

Office Market

In what is described by developer GTC as the largest deal in an office building that is under construction in Budapest to date, ExxonMobil has signed a 27,000 sqm prelease for the whole of the Pillar office center, located close to the Váci út corridor in District XIII.

GTC Pillar office complex.

ExxonMobil, as the sole tenant for the building, was involved in both the design and construction phases of the LEED “Gold” accredited project, designed by Budapest-based ZDA-Zoboki Design Architects’ Studio.  

Regular consultations between the parties ensures that Pillar is tailored to the tenant’s needs, ranging from environmentally conscious green solutions through electric vehicle charging facilities, restaurants according to Bori Gedai, deputy country manager of GTC Hungary.

“After having celebrated our 15th anniversary earlier in 2019, we have now signed the lease agreement for a great new office building, which will enable ongoing growth and confirms ExxonMobil’s long-term commitment to Hungary,” comments Romke Noordhuis, managing director of ExxonMobil Global Business Center Hungary.

“With Pillar, we will provide a modern, state-of-the-art work environment for our employees, from where we will be powering ExxonMobil’s global business,” he adds.

Record Low

Total modern office stock in Budapest currently stands at a little more than 3.5 million sqm, and the current vacancy rate stands at about 6.5%, the lowest on record, according to CBRE, which represented ExxonMobil in the Pillar transaction.

“New supply has remained conservative against buoyant demand, which has resulted in the lowest citywide vacancy rate on record,” said the consultancy.

Development activity is accelerating; Cushman & Wakefield has traced around 250,000 sqm of space under construction, although as much as 60% of space due to be delivered this year is already preleased.

Regional developer GTC completed the 21,500 sqm, LEED “Platinum” certified White House on Váci út last year and the fully let complex was subsequently sold to the German closed-end fund, Warburg-HIH RE. GTC is also planning the 37,000 sqm Twist office complex. Pillar is due for delivery in the first quarter of 2022.

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