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New offices suffer high vacancy

A quarter of all leasable office spaces in Budapest is standing empty, while 90% of the newly-built offices have no tenants, according to a fresh report by the Budapest Research Forum (BRF).

Despite efforts by property builders to slow down new projects, a total of 91,000 sqm of new office space was made available in the first quarter of 2010, which pushed up the overall vacancy rate to 25%.

In January-March, a total of 77,000 sqm were rented out, a third of which were related to renewed contracts.

The average rented space is 570 sqm, with over two-thirds of the leases signed for offices under 500 sqm.

Members of the BRF include CB Richard Ellis, Colliers International, Cushman & Wakefield, DTZ, King Sturge and Jones Lang LaSalle. (Napi Gazdaság)