The third quarter of 2006 showed 20% less leasing activity compared to the previous quarter, with 59,400 square meter of take-up.
However, this number comes close to the Q3 figure one year ago (62,000 square meter). Over 90 lease agreements were signed, from which more than 67 were new transactions and moves while the rest were expansions, extensions and renewals. The major ones include Magyar Cetelem’s 3,550 square meter extension and expansion in Margit House, EDS’ lease renewal and expansion of 3,445 square meter in the Metrotech Building, Wallis Ingatlan Zrt’s move to 1,700 square meter in Máriássy Ház and the newly built Gregersen Palace’s exclusive tenant, Tempus Közalapítvány in its 1,675 square meter. The majority, 63%, of the space let in the third quarter is located in the Non-Central and 26% in the Central submarkets.
Q3 brought low development activity, as two buildings were completed, Kinnarps Office Building (7,500 square meter) in the Central and Gregersen Palace (1,675 square meter) in the Non-Central submarkets, however both are fully let. These two new developments, plus the Andrássy 70 building that was sold to Orco Property Group, increased the total stock to 1,668,449 square meters. Vacancy rate dropped slightly by 1.15 percentage points to 12.41% by the end of September. This fall resulted from the low number of new completions that came to the stock fully leased and the stagnant high office occupation.