Property
Budapset office supply shrinks in Q1 - DTZ
Take-up
Take-up of 2007 Q1 was 75% of that of Q4 2006, but 70% more than the first three months last year. Key new lease agreements were: Questor 2,550 sqm in BC 30, Thyssen Krupp 2,090 sqm in Horizont Park, Budapest Bank 1,465 sqm in Optima B and the Socialist Party (MSZP) 1,300 sqm in Moszkva Tér Business Center.
Major pre-lease agreements: T-Online 5,500 sqm in Infopark D, Group 4 1,600 sqm in Flórián Udvar, Johnson Controls 1,250 sqm in Mester Park and Bristol Myers Squibb 1,224 sqm in Millenáris Office Building.
Major renewals: Bayer-Shering 2,000 sqm in Alkotás Point, Samsung 1,794 sqm in Szépvölgyi Business Park C, AC Nielsen 1,686 sqm in Váci utca Center and L'oreal 1,633 sqm in Óbuda Gate.
Major tenant expansions: Inbev 2,300 sqm in Duna Tower, Philips-NXP 1,300 sqm in IP West II, Citibank 1,297 sqm in Bank Center and Zepter 1,262 sqm in Optima B.
The number of deals over 1,000 sqm in Q4 was 17, which is a little less than one quarter before (21).
According to the BRF, the total amount of letting transactions during Q1 2007 was 59,820 sqm. According to DTZ's analysis, 21,388 sqm of this consisted of renewals, extensions and expansions.
Vacancy
The vacancy rate in both class A and B buildings decreased in Budapest and its periphery, according to BRF, closing at 12.01% (0.82% less than a quarter before). “This change is due to a good level of letting transactions linked with the few completions between January and April," DTZ said.
Vacancy rates in Buda and Pest, and in class A and B buildings fell: class A locations in Buda and Pest to 11.87 % form 12.89%, category B offices to 13.01% from 13.44%.
In terms of Buda take-up, the 11th and the 3rd districts performed the best, while in terms of newly completed buildings only Buda City Tower was handed over (2,850 sqm) in this side of the city.
As a continuous trend, Váci út corridor proved to be the most popular in terms of new tenants' preference: 19.41% of all the transactions were signed in this sub-market. This area is directly followed by North and South Buda sub-markets with 18.74% and 18.12% respectively.
Rental levels
Prime class A headline rents are in EUR 17-17.5/sqm/month range. One or two exceptional buildings reach EUR 18-20/sqm/month. The majority of the letting transactions are concluded at headline rents of EUR 12-14/sqm/month. Rent-free incentives provided by landlords result in effective rents EUR 1-2 lower than headline rents. “Rents are not expected to move within the immediate future," DTZ concluded.
Take-up of 2007 Q1 was 75% of that of Q4 2006, but 70% more than the first three months last year. Key new lease agreements were: Questor 2,550 sqm in BC 30, Thyssen Krupp 2,090 sqm in Horizont Park, Budapest Bank 1,465 sqm in Optima B and the Socialist Party (MSZP) 1,300 sqm in Moszkva Tér Business Center.
Major pre-lease agreements: T-Online 5,500 sqm in Infopark D, Group 4 1,600 sqm in Flórián Udvar, Johnson Controls 1,250 sqm in Mester Park and Bristol Myers Squibb 1,224 sqm in Millenáris Office Building.
Major renewals: Bayer-Shering 2,000 sqm in Alkotás Point, Samsung 1,794 sqm in Szépvölgyi Business Park C, AC Nielsen 1,686 sqm in Váci utca Center and L'oreal 1,633 sqm in Óbuda Gate.
Major tenant expansions: Inbev 2,300 sqm in Duna Tower, Philips-NXP 1,300 sqm in IP West II, Citibank 1,297 sqm in Bank Center and Zepter 1,262 sqm in Optima B.
The number of deals over 1,000 sqm in Q4 was 17, which is a little less than one quarter before (21).
According to the BRF, the total amount of letting transactions during Q1 2007 was 59,820 sqm. According to DTZ's analysis, 21,388 sqm of this consisted of renewals, extensions and expansions.
Vacancy
The vacancy rate in both class A and B buildings decreased in Budapest and its periphery, according to BRF, closing at 12.01% (0.82% less than a quarter before). “This change is due to a good level of letting transactions linked with the few completions between January and April," DTZ said.
Vacancy rates in Buda and Pest, and in class A and B buildings fell: class A locations in Buda and Pest to 11.87 % form 12.89%, category B offices to 13.01% from 13.44%.
In terms of Buda take-up, the 11th and the 3rd districts performed the best, while in terms of newly completed buildings only Buda City Tower was handed over (2,850 sqm) in this side of the city.
As a continuous trend, Váci út corridor proved to be the most popular in terms of new tenants' preference: 19.41% of all the transactions were signed in this sub-market. This area is directly followed by North and South Buda sub-markets with 18.74% and 18.12% respectively.
Rental levels
Prime class A headline rents are in EUR 17-17.5/sqm/month range. One or two exceptional buildings reach EUR 18-20/sqm/month. The majority of the letting transactions are concluded at headline rents of EUR 12-14/sqm/month. Rent-free incentives provided by landlords result in effective rents EUR 1-2 lower than headline rents. “Rents are not expected to move within the immediate future," DTZ concluded.
