Market Report – Industrial and logistics properties 2017

In 2017 industrial and logistics property developers became more active, and the total stock surpassed 2 million square meters. The amount of annual handover was more than 100 thousand square metres for the first time since 2009; the majority of the developments were finished in the second half of the year.

New developments of about 118 thousand square meters were completed in 2017, this is 50% higher than the volume last, and is roughly as big as the development volume of the past five years.

The biggest new hall was made at Inpark Páty Industrial Park: Kühne & Nagel could move into the new establishment of 23 thousand square meters in the third quarter. The new developments which are currently in process take up about 130 thousand square metres. Out of these Üllő Airport Logistics Center is a significant project, here more than 85 thousand square metre of new property is expected to be handed over in the third quarter of 2018.

There was a new record in leases in 2017: following a very strong first half year the annual volume of transactions was close to 620 thousand square metres. This was the first time when demand was bigger than 500 thousand square metres. The number of lease extensions, new contracts and pre-lease agreements increased significantly compared to last year, however, there was a smaller demand for expanding leased areas.

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