Industrial market analysis Q2 2012 (BRF)

The Budapest Research Forum (BRF) which comprises: CBRE, Colliers International, Cushman & Wakefield, DTZ, Eston International, GVA Robertson and Jones Lang LaSalle now reports its Q1 2012 industrial market data.

In Q2 2012, no new industrial developments were completed, therefore the size of modern industrial stock in Budapest and its surroundings totalled 1,806,485 sq m.

The total volume of lease transactions reached 88,370 sq m. This level surpassed the previous quarter by 85%. In the first half of the year 136,064 sq m industrial space was let, representing a 23% decrease compared to the same period of the previous year.

The share of renewals reached the highest level registered since 2010, totalling 59,676 sq m, 67.5% of the total leasing activity. The quarter’s two largest transactions were renewals, both UTI and Diebold renewed with ProLogis.

New leases accounted for 28% market share, no change compared to Q1 2012. Expansions took 4.5% share.

22 leasing transactions were closed in Q2 2012; however, the average transaction size was 4,017 sq m, the second highest level registered since 2010. Logistics parks amounted for 97% of the demand, with an average deal size of 5,038 sq m. 7,755 sq m were let in city-logistics with an average deal size of 1,293 sq m.

Vacancy rate increased by 38 basis points and currently stands at 21.4%. As there weren’t any lease renewals in city-logistics schemes net take-up almost resulted 100% in the decrease of vacant warehouse units, the vacancy rate decreased by more than 4 percentage points. As this type of scheme represents only 10% of the total stock, it does not significantly affect the total market vacancy rate.
During the first half or the year the vacancy rate increased by 51 basis points.

Net absorption remained in the negative range in Q2 2012 accounting for -6,389 sq m.

Download full BRF report in PDF.