In the second quarter of 2017 two buildings were added to the industrial stock with a total size of 20,380 sq m. BILK Logistics Park was expanded by a new 8,790 sq m warehouse whereas BRF added a 11,590 sq m warehouse to the Greater Budapest industrial stock, which was recently bought by M7 Real Estate.
The modern industrial stock in Budapest, and its surroundings stands at 1,953,790 sq m at the end of Q2 2017.
Total demand amounted to 212,750 sq m in Q2 2017, which is the highest quarterly volume ever on record. Renewals accounted for 75% of the total take-up, while the share of new lease agreements made up 19%. Two pre-leases were signed during the quarter, totalling 10,980 sq m and representing 5% whereas the remaining 1% was generated by expansions.
BRF registered 24 industrial transactions in the second quarter, out of which five lease agreements were signed for more than 10,000 sq m. The average transaction size was 8,865 sq m in the quarter which is significantly larger than the typical deal size.
98.5% of the leasing activity was recorded in logistics parks where the average deal size was 11,030 sq m. The average deal size in city logistics schemes equated to 631 sq m.
The largest transaction of the quarter was a renewal on 95,000 sq m in BILK in addition to which a 5,730 sq m pre-lease agreement was concluded by the same occupier. The largest new lease was signed in Prologis Park Budapest – Harbor Park on 13,640 sq m.
The vacancy rate declined by 0.4 percentage point q-o-q reaching a record low of 5.5% at the end of Q2 2017. In total 108,240 sq m is currently vacant and there is no scheme which offers more than 10,000 sq m available adjacent space.
Net absorption remained positive in Q2 2017 and amounted 27,300 sq m.