Work Starts on Speculative Build at Budapest Logistics Park
Leading regional industrial developer Prologis has started work on a rare speculative building at Prologis Park Budapest-Harbor.
Prologis Park Budapest-Harbor.
The 14,000 sqm state-of-the-art logistics facility is currently the only speculative development by Prologis CEE. In line with other developers in the current market environment of high demand and low vacancy, built-to-suit is the development strategy of choice for developers alongside securing preleases early in the process.
At the same time, tenants are demanding more highly specified parks, and Prologis CEE has a common policy of developing buildings with BREEAM “Very Good” ratings.
“When customers need space, they expect immediate and effective solutions from us. We make it our business to continuously assess markets, locations and facilities to satisfy these needs, enable growth and keep our customers ahead of what is next,” Prologis says.
Total modern industrial stock in the Budapest area stood at around 2.23 million sqm as of the end of the third quarter according to the Budapest Research Forum, consisting of CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.
Overall vacancy stood at 2%, representing 43,000 sqm of vacant space, and there is no existing warehouse with an area of more than 5,000 sqm. The largest deal in the period was a 19,000 sqm prelease/built-to-suit deal of the new phase of BILK (Budapest Intermodal Logistics Center).
Speaking of the decision to go ahead with the speculative build at Park Budapest-Harbor, Martin Polák, managing director for CEE at Prologis says, “We focus on delivering the best solutions for our customers in the strategic locations. We are constantly observing the market and reviewing development options in the Central European region.”
The park is located around 12 km from the center of Budapest in the outer District XXII.
The new building has been designed using building information modeling, a 3D-modeling process that gives architectural, engineering and construction professionals the insight and tools to plan, design, construct and manage buildings and infrastructure more efficiently, according to Prologis.
“Implementing BIM also enhances customer experience and drives energy sufficiently in line with our commitment toward carbon neutral developments. Prologis-standard, energy-saving LED lighting and large skylights will cut electricity consumption by 45% in comparison to the latest lighting standards. The special-grade wall insulation and roof system, together with high-performance gas-fired heaters, will reduce heating costs by as much as 30%. Smart meters help optimize water, gas and electricity consumption remotely with just a single click,” commented Prologis.
Elsewhere in the region, in Silesia, Prologis is developing a built-to-suit facility for Raben Group Poland. “Thanks to energy-saving measures, the environmental footprint will not only be smaller, but operating costs will also be lower. Building management and maintenance solutions will also be implemented, such as smart metering to control utilities via mobile phone anywhere in the world,” said Prologis.
The company has achieved a BREEAM “Outstanding” rating for the BMW CE distribution hub it built at Bratislava Park Bratislava.
Despite the current success of the Hungarian logistics market around Budapest, a functioning developer-led industrial market has not been established outside the capital. What development there has been in secondary cities is often owner-occupied, despite the activities of such major regional developers as Prologis and CTP in regional Central European cities elsewhere across CEE.
“We are committed to the logistics real estate market in Budapest and we have ear-marked land options for the extension of all other parks in the Budapest area,” Prologis says of its development plans for Hungary.
This latest phase of Prologis Park Budapest-Harbor is scheduled for completion in the second quarter of 2020.
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