"The Budapest office market over the last three months of 2007 witnessed high activity resulting in a record year in terms of office demand with more than 325,000 sqm leased area.18 lease transactions were concluded in the fourth quarter above 1,000 sqm, showed the fourth-quarter report released by the Budapest Research Forum (CB Richard Ellis, Colliers International, Cushman & Wakefield, DTZ, and Jones Lang LaSalle) on Monday.
Among the largest were the Nokia Siemens Networks' deal (14,100 sqm) in City Gate, ELLA/AXA have signed in BSR Center (7,420 sqm), Nokia moved into Studium (5,825 sqm) and a state authority (NIVE) upgraded to modern offices in Lotar Office Building (5,150 sqm). A total of 92,400 sqm office space was taken up in Q4 2007. Nearly half of this total was realised in the Central sub-market, while 25% included lease expansions and renewals.
Five new office buildings were completed during the quarter: the first two phases of Gateway Office Garden (21,000 sqm) that was occupied by the Hungarian Post, GRT Office Garden (15,160 sqm) in the 11th district, first phase of Skanska's Népliget Center (8,600 sqm), Merkúr Palota (6,500 sqm) in district 6 and Vígadó Offices (4,500 sqm) at Vörösmarty square.
With the year-end, BRF has reviewed the modern office stock in Budapest and several corrections were necessary, furthermore some buildings were excluded due to changes in their status. As a result of the above the total amount of stock was 1,855,900 sqm by 31 December 2007 from that 193,100 sqm was delivered to the market during the last year.
Due to the aggregate alterations, the vacancy rate slightly increased to 12.2% compared to last quarter's figure, but it reached a lower level than at the end of 2006 (12.8%). The majority of the vacant office space (58%) was offered in Non- Central locations, where half of the stock is located."
Source: Portfolio Online Financial Journal
29.01.2008