Wizz Air Relocates to new HQ in Millennium Tower

The airline has secured 8,000 sqm of office space in what is described as a landmark deal in an uncertain Budapest office market, where few such large transactions are being concluded. With a limited pipeline, such large, contiguous, quality, sustainable office spaces are becoming more challenging to source in the Budapest office market.

The long-term lease was concluded with very flexible conditions, according to Valter Kalaus, managing director of Newmark VLK Hungary, who provided tenant representation for the transaction.

Wizz Air is leasing the entire South Tower with state-of-the-art interiors and services to improve employee comfort, according to the company. Airline staff will have a separate entrance and reception, a dedicated modern dining and catering area and a unit of a leading café chain, while a modern fitness center is also available.

“We tried to find a vibrant and rapidly developing location for the client. Millennium Tower is an excellent property as it is surrounded by a lot of services, and the building itself offers many amenities,” says Kalaus of the deal.

“It already functioned as a company headquarters, so a significant part of the fit-out could be retained. A more cost-effective approach was used to arrange the final interior space, which is an important aspect for a tenant which is a low-cost airline,” he said.

“Wizz Air had some ESG requirements that we took into consideration during the selection process. As an airline company, they pay special attention to creating and operating in a sustainable environment. It has been a very long process as the deal had a fairly complicated structure,” Kalaus adds.

Suitable Buildings

Concerning the office market, he adds that only a few new projects have been launched over the past three years. Most contracts are extensions, and there are very few suitable office buildings among those already operating where such a large company headquarters could be established according to modern standards and requirements.

In addition, the flexibility of the lessor extended to the point that it could also provide additional space for the airline’s future expansion should there be demand for it.

“We are delighted to be moving our corporate headquarters to an office building with such outstanding facilities. The new premises will give Wizz Air [….] a central hub to foster collaboration, community and innovation to strengthen its low fare leadership position,” comments Ian Malin, CFO of Wizz Air.

“I am sure that the modern environment and easily accessible downtown location will be appreciated not only by our existing and new colleagues but also by our partners while serving our continuously growing and expanding airline for many years to come,” he adds.

There is currently 410,000 sqm of office space under construction in 16 office projects scheduled for completion across Budapest by 2024/2025. However, the absence of announced projects for 2026 suggests caution and perhaps a shift towards “brown” redevelopment opportunities, according to Cushman & Wakefield.

“Apart from a handful of ongoing office projects, office developers are still reluctant to jump into new [schemes]. Those already started need a strong tenant base to be continued as planned,” concludes Kalaus.

This article was first published in the Budapest Business Journal print issue of April 19, 2024.