C&W closes 78,000 sqm of industrial deals in 2016
The total transactions by Cushman & Wakefield in 2016 involved 78,000 sqm of industrial space in the Hungarian market, most of which were completed in Budapest and its vicinity, according to a press statement sent to the Budapest Business Journal. C&W described 2016 as “a successful year on the Hungarian industrial market”.
The largest deal was the landlord representation of NIPÜF Zrt. (National Industrial Park Management and Development Co. Ltd.), the state-owned industrial developer that entered the market in 2016 under the brand “Inpark”. NIPÜF’s objective is to develop standard or tailor-made logistics and manufacturing buildings, following the needs of customers planning to enter or expand in Hungary.
A lease agreement with one of the leading logistics giants comprises more than 23,000 sqm of modern logistics warehouse space that will serve its international automotive client regionally. The property is due to be handed over in July 2017.
“We are extremely proud to have concluded one of the largest BTS industrial transactions of the year. Despite a demanding schedule and specific technical expectations from the tenant’s side, with our coordination the project was closed rapidly. A truly bespoke facility is being constructed for the tenant,” said Gábor Halász-Csatári associate, head of industrial.
C&W expects that there will be continuous interest from developers for well-located and dimensioned greenfield sites for new projects. All these factors add to the positive market sentiment on both the landlord and tenant side and widespread anticipation of further growth for the industrial sector in Hungary in 2017.
“The Budapest market has seen significant progress compared to previous years: new landlord-developers have increased their market share and several BTS, speculative and semi-speculative developments have been completed. Rental rates are on a slight increase, incentives are lower while longer lease terms (five years or more) are gradually becoming more acceptable, even by 3PL companies who are most sensitive to long-term commitment,” added Halász-Csatári.
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