In Q2 2020, 64,140 sqm of new space was added to the total modern industrial stock in Budapest and its surroundings, according to a quarterly report by the Budapest Research Forum (BRF, which comprises CBRE, Colliers International, Cushman & Wakefield, ESTON International, JLL and Robertson Hungary).
Projects completed during the quarter were: the newest phase of East Gate Business Park (17,780 sqm), the new building of CTPark South (22,840 sqm), the Prologis Harbor DC11 building (13,520 sqm) and the newest phase of Budapest Dock Szabadkikötő (10,000 sqm).
The total modern industrial stock in Budapest and its surroundings stood at 2,351,110 sqm at the end of Q2, according to BRF.
Total demand amounted to 202,610 sqm in Q2 2020, twice as high as the figure registered in the same period last year and 17% higher than the four-year average Q2 volume. New leases accounted for 45.6% of the quarterly volume, followed by renewals with a share of 29.2%. Pre-lease stood for 19.6% and expansions for 5.6% of the quarterly figure. Take up excluding renewals added up to 143,350 sqm.
Some 22 leasing transactions were recorded in the second quarter of the year, out of which eight agreements were signed for more than 10,000 sqm. The average transaction size was 9,210 sqm. About 95% of the transaction volumes was recorded in logistics parks, with an average transaction size of 11,890 sqm. The remaining 5% of the transactional volume was registered in city logistics parks, reaching an average transaction size of 2,060 sqm. 14% of city logistics take-up compiled of renewals, while 86% stood for expansions.
The two largest transactions in Q2 were a renewal in Batta Park on 28,585 sqm and a pre-lease in CTPark Budapest South on 28,460 sqm.
The vacancy rate at the end of the second quarter of 2020 stood at 2.59%, resulting in a 0.22%-point decline quarter-on-quarter, and a 0.45%-point incline year-on-year. At the end of the second quarter a total of 60,930 sqm logistics area stood vacant, and there is only one existing warehouse with available space of more than 5,000 sqm.
Net absorption amounted to 67,030 sqm in the second quarter of 2020.