In the fourth quarter of 2018, two new phases of Üllő Airport Logistics Center were handed over on a total size of 91,760 sqm. The total modern industrial stock in Budapest and its surroundings stood at 2,177,880 sqm at the end of Q4 2018.

 

Total demand amounted to 105,070 sqm in Q4 2018, marking a 51% decrease from the figure noted in the same period last year, which generated the second highest total demand registered by BRF. Lease renewals accounted for 44.1% of the quarterly volume, while the share of new leases was 16.8%. Expansions stood for 15.8% of the quarterly volume. Two pre-lease agreements were signed in the fourth quarter, representing 23.3% of the total demand.

 

 

32 leasing transactions were recorded in the fourth quarter, out of which three agreements were signed for more than 10,000 sqm. The average transaction size was 3,280 sqm during the quarter. 91% of the total leasing activity was recorded in logistics parks, and three transactions were registered in city logistics accounting for 9% of the total demand in Q4 2018.

 

The three largest transactions of the quarter were a pre-lease agreement in BILK’s recently announced new building on 18,800 sqm, a new deal in East Gate Business Park on 10,420 sqm and a renewal in Prologis Park Budapest – M1 on 10,070 sqm. The largest expansion deal was registered in Tulipán Park on 6,900 sqm. Another pre-lease agreement was signed in the EF building of Airport City Logistics Park on 5,700 sqm.

 

The vacancy rate decreased by a significant margin of 1.3 pps q-o-q, to the current record low level of 2.4% due to the 95% occupancy level of the new Üllő Airport Logistics Center. At the end of the fourth quarter, a total of 51,840 sqm stood vacant, and only one existing scheme had more than 5,000 sqm of available warehouse space.

 

Net absorption totalled 116,170 sqm in the fourth quarter of 2018.