Two new buildings were handed over to the Greater Budapest modern industrial stock in Q4 2020; a new 10,600 sq m building in InparkPáty and a 13,200 sq m building in Budapest East Business Park in Nagytarcsa. Including these completions, the total modern industrial stockstood at 2,374,900 sq m at the end of the year.

Total demandamountedto 110,260 sq m in Q42020, which was 25% higher than in the corresponding period of the previous year. New relocation leases in the existing stock stood for 46% of total leasing activity, while expansions of existing premises amounted to 6%. The quarter saw no pre-leases, hence the quarterly take-up totalled 57,520 sq m. The remaining 48% of total demand during the quarter was made up of renewals. Total leasing activity throughout 2020 amounted to 537,900 sq m, marking a 29% increase from the previous year and the second highest annual volume on record.

20 leasing transactions were recorded in Q4 2020,three of which were signed for more than 10,000 sq m. The average leasesize continued todecrease to a more normalized level at 5,510 sq mduring the quarter.The larger deals, which exceeded the average, were evenlysplit between new leases and renewals. The vast majority of leases were still signed in big-box logistics parks; the city-logistics stockregistered only three agreements.

The three largest deals during the quarter included a 23,370 sq m new lease in CTPark Budapest East in Üllő, a 15,940 sq m renewal in Prologis Park Budapest - Sziget in Szigetszentmiklósand another new lease for 13,050 sq m in Euro-Business Park in Budaörs.

The vacancy rateat the end of Q42020 stood at 2.0%,down by 0.3pp from the previous quarter but up by a marginal 0.1pp from a year earlier. At the end of the year a total of48,000sq m logistics stockstood vacantandthere was onlyoneexisting building withmore than 5,000 sq m of available warehouse space.

Net absorption amounted to 29,890 sq m in the fourth quarter of 2020, raising the annual volume to 121,590 sq m.