In Q4 2019, 9,090 sqm of new space was added to the total modern industrial stock in Budapest and its surroundings, as the “E” building of Dél-Pesti Üzleti Park (9,090 sqm) was handed over. The total modern industrial stock in Budapest and its surroundings stood at 2,246,960 sqm at the end of Q4 2019.

Total demand amounted to 88,230 sqm in Q4 2019, indicating a 16% decrease from the figure noted in the same period last 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.

18 leasing transactions were recorded in the fourth quarter of 2019, out of which three agreements were signed for more than 10,000 sqm. The average transaction size was 4,900 sqm during the quarter. 99% of the transaction volume was recorded in logistics parks, with an average transaction size of 5,110 sqm. The remaining 1% of the transactional volume was registered in city logistics parks, 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 stood at 1.85% resulting in a 0.64% decrease q-o-q, and a 0.53% decline y-o-y. At the end of the fourth quarter, a total of 41,640 sqm logistics area stood vacant, and there is no existing warehouse with available space of more than 5,000 sqm.

Net absorption totalled 29,760 sqm in the fourth quarter of 2019.

The Budapest Research Forum (BRF) comprises CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.