The office building vacancy rate has been continuously diminishing in the Central Buda area of the capital, reaching 4.6%, the lowest ever recorded vacancy rate in the market segment of class A and B offices, a recent study shows, according to a press release sent to the Budapest Business Journal.
According to the most recently released third-quarter market report of the Budapest Research Forum (BRF), class A and class B office buildings account for some 80% of the 3.35 million square meters of Budapest office market stock. Some 24.8% of the total demand in the Budapest office market is made up by renewals, while expansions account for another 6.4%, according to the press release.
Another report prepared by Cushman & Wakefield (C&W) claims that 8.12% of the total take-up was realized in Central Buda in Q3. The C&W report notes that the vacancy rate has been continuously diminishing in Central Buda, with the present rate of 4.6% being the lowest ever recorded vacancy rate in this segment of the market.
Class A office building Alkotás Point has been present on the Central Buda market for 15 years and currently has an occupancy rate of 95%. Owner Heitman has invested in energy monitoring and air technology systems, economically efficient solutions and services.
Tenants on today’s office market do not necessarily seek buildings offering the largest possible area, but more often those providing flexible conditions and a high standard of operational services, said Amy Tonnessen, Heitmanʼs Senior Vice President, Portfolio Management Europe.