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Office market: 2009 closed with a take-up

Take-up in the last quarter amounted to a relatively healthy 63,767 sq m, with renewals and expansions remaining the key source of occupier activity, accounting for more than half of the Q4 figure (52.8%), Budapest Research Forum's latest report shows.

Members of the Budapest Research Forum include CB Richard Ellis, Cushman & Wakefield, DTZ, GVA Robertson, Jones Lang LaSalle and King Sturge.

An increasing proportion of the deals are due to tenants relocating within Budapest or renewing previous deals. That is why vacancy practically doubled since 2007, even if take-up figures were above or around 300,000 sq m/year.

The most significant transactions were Getronics renewing on 4,686 sq m at Margit Palace and Celanese Corporation renegotiating their 2,800 sq m lease and expanded further more with 1,500 sq m office space at Váci 33.

At the end of 2009 modern office stock totaled 2,400,559 sq m. Seven new office buildings were completed during the quarter, predominantly in the non-central submarkets (61,545 sq m), whilst
availability continued to trend upwards. The largest office buildings completed were Corvin phase II with
24,421 sq m office space and Budawest with 14,065 sq m space. Ü48 was introduced in the 8th district with 7,365 sq m office space, already pre-let to FHB bank. Further completions include: Allee Corner (6,795 sq m) in the 11th district, Uniqua Vital Business Center (8,899 sq m) in the 13th district, whilst Paris Department Store (3,700 sq m) and First Site Office Building (2,810 sq m) were added to the CBD stock.

The total vacancy rate now stands at just below 22%, with the non-central and peripheral submarkets facing the highest oversupply. (BBJ Online)