The Budapest Research Forum (BRF) says that total modern industrial stock in Budapest and its surroundings stood at 2,246,960 sqm at the end of Q4 2019.
According to a quarterly report by BRF (which comprises: CBRE, Colliers International, Cushman & Wakefield, ESTON International, JLL and Robertson Hungary), some 9,090 sqm was added to the total modern industrial stock in Budapest and its surroundings in the last quarter of 2019. The handover of building "E" of Dél-Pesti Üzleti Park accounts for the entire increase.
Total demand amounted to 88,230 sqm in the quarter, indicating a 16% decrease year-on-year and a 43% decrease compared to the previous quarter. Lease renewals accounted for an outstandingly high ratio, reaching 85% of the quarterly volume, followed by new leases with a share of 8%. Prelease stood for 5% and expansions stood for 3% of the quarterly figure. Take up excluding renewals added up to 13,610 sqm which was 77% lower than in Q4 2018.
Some 18 leasing transactions were recorded in the last quarter of 2019, out of which three agreements were signed for more than 10,000 sqm. The average transaction size was 4,900 sqm. About 99% of the transaction volume was recorded in logistics parks, with the average transaction size reaching 5,110 sqm. The remaining 1% of the transactional volume was registered in city logistics sites, reaching an average transaction size of 1,300 sqm.
The two largest transactions in Q4 were renewals in Prologis Park Budapest – Gyál: one was for 22,180 sqm, while the other for 20,750 sqm. The vacancy rate at the end of Q4 2019 fell to 1.85% resulting in a 0.64% decrease compared to Q3, and a 0.53% decline year-on-year. At the end of the quarter, a total of 41,640 sqm of logistics area stood vacant, and there was no existing warehouse with available space of more than 5,000 sqm.
Net absorption totaled 29,760 sqm in Q4 2019.