In the third quarter of 2015 the size of the modern industrial stock in Budapest and its surroundings stood at 1,842,310 sq m as one building has been excluded from the speculative stock being sold to an end user.
Total leasing activity amounted to 61,835 sq m, which is almost 60% of the level registered in Q2 2015 and 10% less than in the same period of previous year.
Demand for industrial space was driven by new leases, which accounted for 46% of the total leasing activity. It was followed by renewals with a share of 39%, while expansions totalled 15%. Pre-lease or new built-to-suit agreements were not registered in the third quarter of 2015. The volume of take-up (lease agreements excluding renewals) reached 37,845 sq m, the half of the level measured in Q2 2015 and almost 30% less than a year before.
In Q3 2015, 28 industrial transactions were registered with an average size of 2,210 sq m, less than the half of the average figure registered in the previous quarter. 81% of the leasing activity was signed in logistics parks with an average deal size of 2,780 sq m. The average deal size in city logistics schemes reached 1,180 sq m. The quarter’s largest transaction was a lease renewal on 12,290 sq m in ProLogis Park Budapest Harbor Park, followed by a new lease agreement in K-Sped warehouse on 7,650 sq m. The largest expansion was signed in Citypoint9 on 3,450 sq m.
The vacancy rate has decreased further, standing at 12.3% at the end of September, reaching the lowest level since 2008. The decline of the rate reached 1.4 pps quarter on quarter and 6.3 pps year-on-year.
Net absorption reached 31,630 sq m, which is two times higher than the level measured in the previous quarter.