Office News: Tenants are Increasingly Occupying Spaces

The number of vacant offices in the Budapest rental market is minimal. In the third quarter, the vacancy rate did not exceed 5.9 percent, according to the Budapest Real Estate Consultants' Consultation Forum (BIEF). Contrary to last year's and first quarter of this year's trend, in the third quarter, the North Buda submarket had the smallest vacancy, only 2.9 percent unused.

In the third quarter of 2019, two office buildings were added to the Budapest office stock. These include the Hungária Center, which has a total leasable area of 7 thousand square meters, and the second phase of the Advance Tower, with a floor space of 7.6 thousand square meters.

The vacancy rate fell to 5.9 percent, a record low of 0.4 percentage point quarter-on-quarter. In the Northern Buda submarket, BIEF registered the lowest vacancy rate of 2.9 percent, which is disparate from previous quarters. The highest vacancy rate of 34 percent is still in the agglomeration.

Net absorption in the third quarter was 28 thousand square meters and gross demand was 191 thousand square meters. The rental market grew by 41 percent compared to the same period last year. Contract extensions represented the largest share of total demand, accounting for 63 percent of the total value. New contracts rose to a fifth of transaction volume. The share of enlargements was 7 percent and that of pre-contracts 10 percent.

The biggest movement was in the center of Pest, unlike in previous years. Here, 32 percent of the total transaction value was entered into. The Váci út corridor and South Buda held 28 and 17 percent of the market.

BIEF registered a total of 141 leases on an average of 1,300 square feet during the quarter, up 41 percent from the previous quarter.

Source:

Napi.hu