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Industrial property market report Q4 2014

Monday, 09 February 2015 14:19
The Budapest Research Forum (BRF) now reports its Q4 2014 industrial market data.

In Q4 2014 one new building was completed in ProLogis Park Budapest-Sziget, therefore the size of modern industrial stock in Budapest and its surroundings increased by 7,500 sq m and reached 1,855,585 sq m.

Demand for industrial space showed a strong performance in Q4 2014. The total volume of lease transactions reached 128,465 sq m which is 2 times higher q-o-q and is identical to the take up level registered in Q4 2013. The annual demand increased also significantly, a 55% y-o-y growth was registered with a total amount of 386,625 sq m.

In Q4 2014 the share of renewals and new leases remained in balance, both transaction types accounted for 42% of the total leasing activity, expansions took 12%. Moreover, one pre-lease agreement was registered which makes up 4% of the total leasing activity. During the year the share of renewals grew by 9 percentage points compared to 2013 accounting for 43% of the total leasing activity. New transactions took 36%, expansions 18%, pre-leases 3% of the annual demand.

In total 27 industrial transactions were concluded in Q4 2014 out of which two exceeded 10,000 sq m. The largest lease renewal took place in ProLogis Park Budapest-Batta exceeding 28,500 sq m. The largest new deal of the quarter was signed by GE Hungary for 20,750 sq m in ProLogis Park Budapest-Gyál. 94% of the transactions were concluded in logistic parks where the average transaction size reached 5,775 sq m, while in city-logistics the transaction size is 1,190 sq m.

Due to the high level of demand, the vacancy rate showed an outstandingly strong decrease, currently it stands at 15.7% representing a decrease of 2.9 percentage points q-o-q and 5.5 percentage points y-o-y.