BRF – The group has collated all information and now reports the office market data for the third quarter of 2009.

A total of 47,663 square metres (sq m) of speculative office space was let in the period from 1st July to 30th September 2009. This figure is the lowest since Q2 2006 and a significant 60% drop compared to the previous quarter.

The Q3 take-up splits as follows: 51% renegotiation of current lease agreements, 37% new leases in existing office buildings, 11% expansion of existing areas and under 1% pre-lets. Due to the market trends fuelled by the current economic situation, the share of renewals has been increasing quarter on quarter, and has comprised the largest element of take-up since Q1 2009.

The first four out of the five largest transactions were renewals. TATA signed the largest transaction this quarter extending to 5,730 sq m in Science Park, Deloitte renewed its 4,871 sq m office lease in Park Átrium, Roche stayed in 3,141 sq m at Terrapark and Novartis (2,510 sq m) renegotiated at Bartók Ház. The largest new contract was a pharmaceutical company’s acquisition of 1,618 sq m in Dorottya Udvar.

118,482 sq m of modern office space was delivered to the market in Q3 2009, bringing the total stock to 2,334,100 sq m at the end of September. The largest completions of this quarter comprise the first phase of Madarász Irodapark (16,822 sq m), followed by Infopark E (16,250 sq m), the remaining phases of IP West (total 13,974 sq m) and the second phase of Capital Square (10,541 sq m). Several smaller office buildings were delivered, including Bécsi Corner, Fórum Offices, Palazzo Dorottya, and Erzsébet Office Building “B” was refurbished. In addition, two built-to-suit office buildings, the new headquarter of the Hungarian National Television (MTV) and the neighbouring Market Headquarter were also completed.

The vacancy rate increased by 1.7 percent points from Q2 and 4.6 percent points on the same period last year.  At the end of September 19.7% of the total office stock was vacant, the highest rate registered since December 2003. The vacancy rates of the sub-markets have grown between 1.2 to 1.6 pps. from Q2, but the Central sub-market witnessed an over 2 pps. increase. The vacancy rate was again the lowest in the Central sub-market with 13.7% (11.7% in June) while it remained the highest in the Non Central Pest area for the third consecutive quarter standing at 25.1% (23.4% in June).