There were no new buildings handed over in Q3 2020. The total modern industrial/logistics stock in Budapest and its surroundings stood at 2,351,110 sqm at the end of the quarter.

Total demand amounted to 176,870 sqm in Q3 2020, which is 30% higher than the figure registered in the same period last year. Transactions registered in the Jan-Sep period came close to 460,000 sqm which was a new record regarding Q1-Q3 demand volumes of previous years. Preleases and BTS agreements accounted for 40.1% of the quarterly volume, followed by renewals with a share of 29.8%. Expansions stood for 20.5% and new leases for merely 9.6% of the quarterly figure. Take up excluding renewals added up to 124,250 sqm.

24 leasing transactions were recorded in the third quarter of 2020, out of which six agreements were signed for more than 10,000 sqm. The average lease size was 7,370 sqm during the quarter. One transaction was registered at city logistics parks (1,400 sqm). Average transaction size at logistics parks was 7,629 sqm; out of the 8 deals exceeding the average size, only two were renewals of expiring leases.

Each of the three largest agreements was above 20,000 sqm: a 35,700 sqm pre-lease was signed by Lenovo at CTPark Budapest East, a 24,800 sqm renewal and a 20,800 sqm expansion were closed at Prologis Park Budapest Sziget.

The vacancy rate at the end of Q3 2020 stood at 2.3% resulting in a 0.29%-point decline q-o-q, and a 0.21%- point decline y-o-y. At the end of the second quarter, a total of 54,090 sqm logistics area stood vacant, and there was only one existing warehouse with available space of more than 5,000 sqm. Net absorption amounted to 6,850 sqm in the third quarter of 2020.

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