Vacancy rate on the ever popular Váci út office corridor remained below 20% (18.2%), while CBD vacancy rate jumped up to 23.5%, thanks to new office buildings handed over in this location, the new market report from Real Estate Research Association (RERA) shows.
As expected, the so called periphery submarket sees the highest vacancy rate: 40.5 % RERA average office market vacancy rate shows 24.9%, an increased figure in comparison to the previous quarter.
Based on RERA figures, the volume of published open market deals exceeded 54,000 sqm. The submarket of Váci út corridor was the most active, where more than third of the total quarterly take-up (37.6%) was realized. The second was the submarket of Inner-Buda (20%), followed by South-Buda (16.5%), while other submarkets gained only single-digit shares out of the total take-up.
Weak demand is well attributable to the fact that new office leases were consecutively below 2,000 sqm in the 1st quarter. As expected, lease renewals were signed for considerably large spaces around 5,000 sqm, such as Ernst&Young’s lease renewal in WestEnd Business Center.
These facts clearly show that tenants with larger office space requirements rather chose renegotiation in the first quarter of 2010 as well. During data collection several office buildings reported that they rather accepted to reduce leased area sizes prior to the expiry date.
RERA, apart from the current statistics, aims to pay particular attention to the categorization of each office building by quality and location aspects in the next, Q2 report, which is likely to show a more complete market overview from an entirely new point of view.
In addition, RERA will assign a leading part to ‘net absorption’ in the next quarter, which would show the decrease or increase of leased stock in total, quarter on quarter. (BBJ Online)