In the fourth quarter of 2017, six buildings with a combined size of 62,750 sq m were added to the industrial stock. Four new schemes were handed over: a 16,050 sq m BTS scheme on the area of CTP Biatorbágy, a 14,250 sq m warehouse in East Gate Business Park, an 8,400 sq m BTS building in Budapest Airport Business Park and a 7,000 sq m warehouse in Budapest Dock Szabadkikötő. Furthermore, two existing buildings were included in the stock due to adequate quality and occupational status; the 8,550 sq m warehouse component of Logicor’s Fehérakác property and the 8,500 sq m Promesa Warehouse in Dunakeszi.
The total modern industrial stock in Budapest and its surroundings stood at 2,043,220 sq m at the end of Q4 2017.
Total demand amounted to 211,250 sq m in Q4 2017, marking a 58% increase over the figure noted in the same period of the previous year. Lease renewals stood for 37% of the quarterly volume, while the share of new leases was 23%. Two pre-leases were signed during the quarter for BTS developments totalling 81,050 sq m, representing 38% of total demand, and expansions accounted for the remaining 2% of leasing activity.
29 leasing transactions were recorded in the fourth quarter, out of which six agreements were signed for more than 10,000 sq m. These deals accounted for 69% of all leased area. The average transaction size was 7,280 sq m during the quarter and the median amounted to 2,270 sq m, reflecting a distribution skewed towards a handful of dominant deals.
As much as 96% of all leasing activity was recorded in logistics parks, with only two deals signed in city logistics schemes – an 8,550 sq m new lease and an 860 sq m expansion.
The largest transaction of the quarter was a 64,400 sq m pre-lease at Üllő Airport Logistics Center, which was coupled with another 16,650 sq m pre-lease in the same park. The largest renewal amounted to 28,590 sq m and was signed in Prologis Park Budapest – Batta.
The vacancy rate dropped to a new record low of 4% by the end of the fourth quarter. A total of 81,960 sq m is currently vacant, and there are only three existing schemes with more than 5,000 sq m of available warehouse space.
Net absorption totalled 73,650 sq m during the quarter, which is the highest figure since 2009.