In the third quarter of 2016 one development was completed, the new building of the Prologis Park Budapest – Sziget offers 21,510 sq m modern industrial space in Szigetszentmiklós.
In total the modern industrial stock in Budapest, and its surroundings stands at 1,909,310 sq m.
Total leasing activity amounted to 84,570 sq m in Q3 2016, which marks a 9% decrease on the previous quarter and a 37% incline on a yearly basis. The demand was generated mostly by new lease agreements with 43% of TLA, while renewals made up 28% and expansions 16%. Due to limited available space several large pre-leases were signed during the quarter, totalling 11,560 sq m and thereby representing 13% of the total demand for the period.
BRF registered 31 industrial transactions in the third quarter, out of which one new lease agreement exceeded 10,000 sq m. The average deal size was 2,728 sq m, 38% below the last quarter’s result.
Approximately 95% of the leasing activity was recorded in logistics parks where the average deal size was 2,961 sq m. The average deal size in city logistics schemes equated to 1,155 sq m.
The largest lease was signed in K-Sped 17, a new lease agreement on 14,870 sq m. The largest pre-lease was signed in BILK on 5,960 sq m. The largest renewal was a 6,080 sq m deal in the Prologis Park Budapest - Harbor Park, while the largest expansion took place in a ProLogis Park Budapest – Gyál on 6,850 sq m.
The vacancy rate declined 0.7 percentage points q-o-q reaching 8.9% at the end of Q3 2016. In total 169,320 sq m is currently vacant with only three schemes offering available space above 10,000 sq m.
After reaching a negative territory in Q2 2016, net absorption managed to recover and amounted to 13,340 sq in this quarter.
BRF
