BRF: 2010 Q4

Members of the Budapest Research Forum including CB Richard Ellis, Cushman & Wakefield, DTZ, GVA Robertson, Jones Lang LaSalle and King Sturge report their industrial market data covering Q4 2010.

In Q4 2010 one industrial scheme was delivered to the market, the built-to-suit development for Waberer’s in BILK Logistics Park comprising 18,000 sq m warehouse and 500 sq m office space. With this completion the total industrial stock reached 1,805,144 sq m at the end of the year.  In total 68,333 sq m industrial stock was completed in 2010, out of which 33% was speculative development.

The take-up in Q4 2010 reached 51,558 sq m, only 2% lower compared to the yearly average, and 27% less than the previous quarter.  In total 210,270 sq m industrial stock was let in 2010. 

Contrary to the previous quarter, Q4 2010 renewals took the largest share of take-up representing 45% of the total take-up. New take-up was only 2% less at 43%, while expansions comprised 12% of the quarterly take-up. Analysing the yearly take-up trends, new transactions, pre-let agreements and expansions comprised 65% of the demand.
In total 29 industrial transactions were concluded in Q4 2010 out of which 22 signed for space in logistics parks. The average transaction decreased during the last quarter quarter to 2,120 sq m in logistics parks and 702 sq m in city logistics. In logistics parks the average transaction for 2010 was 2,850 sq m, while in city logistics it was 961 sq m.

Vacancy reached more or less the level registered at the beginning of the year. The current vacant industrial rate is 19.5% of the total stock. Occupancy in logistics parks (81%) surpassed occupancy of city logistics, which has a 76% occupancy rate.

Note on the methodology:

BRF analyses modern industrial properties located in Budapest and Pest County, completed after 1995 for letting purposes, comprising a minimum of 2,000 sq m space in terms of city-logistics or minimum of 5,000 sq m space in terms of logistics park warehouses. The industrial stock excludes owner occupied buildings.