GRT Group Commences Latest Phase of Office Garden
The Hungarian developer, GRT Group, has commenced construction of the 20,000 sqm fourth phase of the Office Garden office park in District XI in South Buda.
Office Garden by GRT Group.
Phase 1 of the long-term project was handed over in 2008 and upon completion the complex will consist of 95,000 sqm of office space in five phases with a capacity for 7,000 workers. GRT have been operating on the Hungarian market as developers and constructors in the office and residential sectors since 1989 and has completed 180,000 sqm of space.
According to GRT, the company intends to acquire LEED certification as it did with the preceding stages of the project: the second phase achieved “Gold” accreditation. All phases of the project were designed by László Szekeres of Skicc architect studio, based on a long-term relationship. Handover of the latest phase is planned for the second quarter of 2021; the third installment of Office Garden was completed in 2017.
The South Buda sub-market is very popular among tenants, with 15% of the annual net take-up in 2018, according to GRT; the leasing figures for the first quarter of 2019 are also promising.
The strongest occupational activity was recorded in the Váci Corridor, which attracted more than 35% of total demand, compared to South Buda with 14%. Strong demand is continuing to be registered for new developments: 78% of the new office space delivered in 2018 was preleased before completion.
Preleases now constitute a significant segment of take-up on a market with record low vacancy. Tenants with significant requirements may need to wait for deliveries in 2021 in order to secure office areas of the required size and quality.
“Practically speaking, this increased interest boosted the launch of Office Garden IV, as no vacant areas were left in the previous phases. We firmly believed in the success of the project from the beginning, and the feedback and great performance of the office park confirmed that our concept was right,” says Róbert Tilki, managing director of Robertson Hungary.
A member of the BNP Paribas international network, Robertson Hungary has been the exclusive letting agents on all phases of the project. Tilki expects to have concluded significant lettings by the end of the year.
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