Office occupier activity up 12% in Q1

Office Market

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Office occupier take-up in Hungary increased by 12%, while the vacancy rate decreased in the first quarter, as compared to the same period last year, commercial real estate service Jones Lang LaSalle (JLL) reported in a press release today.

In the first quarter of 2015, there were no new office completions, stagnating office stock at 3,230,086 sqm. The vacancy rate decreased by 50 bps compared to the previous quarter, while there were significant deviations between the vacancy rate of sub-markets. The highest vacancy rate was registered in the Periphery (32.6%), the lowest in South Buda (10.2%).

The report also noted that the highest prime rents are 20 EUR/sqm/month, while the average rent prices are between 11-14 EUR/sqm/month in the Grade "A" office buildings.

"The tenant market has become extremely active. The driver of property related decisions of large companies is still portfolio rationalization, while tenants with smaller space requirements aim to reach a qualitative change in terms of the location or the technical parameters of the building," said Rita Tuza, Head of Research at JLL Budapest. According to Tuza 2015 will be about preleases and a large number of rental transactions will be signed. 

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