Office-solution for Covance and Chiltern delivered by ESTON

ESTON International assisted in finding a new HQ for the tech-giant

The US-based LabCorp life sciences company, whose drug development segment is known as Covance, successfully completed the acquisition of Chiltern in 2017. The aim was to strengthen their position as a global life sciences company with leading diagnostics and drug development businesses. A change of this size in a company’s life requires office expansions, change management and relocation. The two companies, Chiltern and Covance, were initially located in Allee Corner and Canada Square. Neither of these locations were able to fulfill the requirements after the merger. As a best option, the two companies decided move to a new joint location that offered a larger office area and a higher level of service and ESTON International was the partner selected to identify the new location. The optimal solution was the Residence Offices situated in District II. The property was chosen due to the excellent location, the level of service, and the leasable area, all of which perfectly suited the client. The move-in to the new 600 sq m office was completed in March 2019. The Residence Office Buildings belong to the LFPI Group that represented on the Hungarian market by FLE GmbH.

Market Report H2 2018

Lendületben az irodapiac – derül ki az ESTON új kutatásából
A budapesti bérirodák piacán dinamikus kereslet-bővülésnek lehettünk tanúi az elmúlt három évben. A szakértők szerint ennek még nincs vége.

2018-ban rekord szintre emelkedett a budapesti bérirodák iránti kereslet: az összes kiadott terület meghaladta az 530 ezer négyzetmétert; erre korábban csak 2015-ben volt példa. Piaci szereplők osztják a véleményt, hogy a növekedés dinamikája szükségszerűen csökken a közeljövőben, de a részleteket nézve úgy látszik, a coworking irodák új lendületet adhatnak a kereslet bővülésének.
Salamon Adorján, az ESTON International Zrt. vezérigazgatója szerint a nagyobb szolgáltatók már jelen vannak a budapesti irodapiacon, de a verseny a jövőben tovább éleződik. „Tapasztalataink szerint az Egyesült Államokban és a Nyugat Európában már bevált formula itthon is egyre nagyobb népszerűségnek örvend, és a korábban 1500-2000 négyzetmétert kereső szolgáltatók ma már jóval nagyobb, akár 4-5 ezer négyzetéteres bérleményeket keresnek operációjuk biztosítására. Közismert, hogy a jelenlegi piaci helyzet nem igazán kedvez a nagyobb bérlőknek, hiszen mozgásterük elsősorban a még építés alatt álló irodaházakra korlátozódik.” A szakember szerint lenne igény arra, hogy Budapest dinamikusabban zárkózzon fel a nyugati trendekhez, hiszen egyre több cég ismeri fel, hogy hatékonyságának növeléséhez a munkavállalói igények kiszolgálásán át vezet az út. A coworking irodaterek jellemzően elsődleges lokációkon, kiválóan megközelíthető épületekben találhatók, ahol az irodai munka mindig újszerű, igényes és változatos környezetben zajlik. A kulcs a rugalmasság, a legfőbb felhasználók lendületes start-up vállalkozások, vagy akár multinacionális nagyvállalatok, ahol sok tevékenységet projekt-feladatként delegálnak.
Bővebben az alábbi kutatásból olvashat a jelenlegi iroda-, ipari-, és befektetési piac helyzetéről:



The American owned HortonWorks has recently extended their office lease in the CBD in Central Udvar.  The tenant representation team of ESTON International supported the California based data software developer company from Santa Clara. 

ESTON started the cooperation with HortonWorks in 2016 and the advisor company was really glad to work with them again. „We are happy that the „band” (the team dealing with the real estate matters) was reunited again. Because of their growing clientele they started to run a bigger operation and it resulted in an office size increase as well” – told Tamas Pal, Head of Office Agency from Eston. „It ment a lot and made the process easier that we have worked together with AddVal before which has been responsible for the letting of the building. Their professional attitude ensured the new Landord about the serious willingness of the Tenant regarding the lease extension and expansion”.

AddVal’s Leasing Manager Rita Szabo said: „We are really satisfied when one of our Tenants extending their office lease in the building that we lease and manage. It is a great recognition of our efforts.

„In the current office lease environment it’s very challenging to secure the requested office space for an expansion but Eston did their best for the sake of HortonWorks” – continued Tamas Pal, Head of Office Agency at Eston International. HortonWorks started with one level lease in the building and now they are on 3 levels after expanding their operation.

The ESTON Tenant Rep team represented HortonWorks for the second time. Now and then Eston worked together with the American advisor; Savills Studley helping their Client together. An assignment like this is always really interesting because apart from the local tasks the consultants need to resolve the time zone differences which requires a great flexibility from all parties. In this particular case we were lucky that the consultants and the landlord team have been well established so the earlier mentioned „band” expression is a very correct expression. We can achieve the targets together with the band!


BRF report – Q3 2018

Office market report:

Four new office buildings were delivered to the Budapest office market in the third quarter of 2018, totalling 110,970 sq m. The largest of the completions took place in the Non-central Pest subregion; Magyar Telekom’s HQ comprises 58,800 sq m. Further handovers included the 36,000 sq m Mill Park, the 11,340 sq m Advance Tower I. and the 4,830 sq m EcoDome.

The total modern office stock currently adds up to 3,587,290 sq m, consisting of 2,943,580 sq m category ‘A’ and ‘B’ speculative office space as well as 643,710 sq m owner occupied space.

Industrial Property Market:

In the third quarter of 2018, one new building was handed over: a 5,000 sq m warehouse in the next phase of Budapest Dock Szabadkikötő.

The total modern industrial stock in Budapest and its surroundings stood at 2,086,120 sq m at the end of Q3 2018.

Total demand amounted to 109,350 sq m in Q3 2018, marking a 10% decrease from the figure noted in the same period last year but 83% increase compared to the previous quarter. Lease renewals accounted for 52.1% of the quarterly volume, while the share of new leases was 31.4%. Expansions stood for 10.1% of the quarterly volume. One pre-lease agreement was signed in the third quarter, representing 6.4% of total demand.

For the full reports, please click on the links below:



BRF Q3 2018 industrial PR_ENG-FINAL_ESTON

BRF Q3 2018 industrial PR_HUN-FINAL_ESTON


ESTON International started its operation 25 years ago, and has become one of the most significant players in the Hungarian commercial property market, and has been remarkably successful ever since. The company, which provides a full scale of services in the commercial property market, has Sykes, Epson, MOL, Erste Fund Management, Concorde, Fusion, ACG and Nokia Networks among its main clients. ESTON operates an office area of more than 300 thousand square metres, has supervised the building of more than 40 thousand square metres office space as project manager, furthermore ESTON has one of the biggest teams of tenant representative consultants. In the past two years ESTON sold more than 200 thousand square metres of development land, and the full development potential of the properties is around 700 thousand square metres.

ESTON started its operation on the property market in 1993 and set off to expand its scale of services very early on. In addition to its professional approach the company has been focusing only on commercial properties since 2004. ESTON’s team has obtained a very strong market position in this sector, where the competitors are the local offices of the biggest global property service providers. Since 2010 ESTON has offered tailor made solutions in the property management sector as well, this branch has become one of the most dynamically growing divisions at the company. In September 2017 ESTON and Savills entered into a partnership with the aim to expand their services on institutions and property companies who would like to invest in Hungary, in addition, Hungarian clients also have wider access to the European market through Savills’ extended network of offices.

Mr. Adorján Salamon, ESTON’s Managing Director said: “I’m very proud that in the company’s history we have reached the highest number of staff, the biggest market share and annual income. I’m positive that under the current market conditions we are able to continue the growth. I would like to say thank you to our Partners and Colleagues because without them we couldn’t have realised this success story.”

Salamon Adorján

Market Report H1 2018

Office market

In the first half of 2018 office areas of around 75 thousand square meters were handed over in five office buildings, which surpasses last year’s volume (5,500 m²) significantly. The main parts of the new areas were finished on Váci Street (about 60 thousand square metres). The biggest newly handed over building is Promenade Gardens (22,500 m²).

The building of further new office buildings, about 462 thousand square metres, has started; out of this 168 thousand square metres could be handed over until the end of the year (10 buildings). The office stock of Váci Street will probably surpass one million square metres in 2020. This means that the current office stock (25% of the market) will remain the largest sub-market in Budapest.

Industrial and logistics property market

Until the middle of 2018 new halls were handed over in three logistics parks with a total area of over 30 thousand square metres (out of which 25,691 m² is warehouse and 4564 m² offices). The size of the area handed over is significantly smaller (30%) than it was a year ago, but the completion of more, big sized units is being planned until the end of the year. The biggest new handed over building is located in Inpark Páty, and is used as a warehouse by Euronics (12,200 m²).

The major part of the 113 thousand square metre logistics property (100 thousand m²), which is being developed, is expected to be handed over this year. By this the annual development volume will grow by 11% compared to 2017. The biggest growth can be expected in Üllő Airport Logistics Center; here 85 thousand square metres can be used by tenants in the two halls before the end of the year.


In the first quarter of 2018 economic growth in Hungary grew by 4.4% compared to last year’s result. This is one of the most significant GDP growth measured in the EU. In the January-May period performance grew in several fields: industry (3.1%), construction industry (6.9%) and tourism (number of guests: 7.1%, income of commercial accommodation: 11%). Inflation in the first half of the year stood at 2.3%; in case of durables deflation could be seen. Labour-market indicators continued to improve; unemployment rate fell to 3.7%, employment rate increased to 69.1%. Average net income surpassed by 12.1% last year’s data in the January-May period.  Base rate stills stands at 0.9%, the Hungarian forint weakened significantly compared to the euro (HUF/EUR 328.6).

Please, click on the title for the full report (pdf).

BRF report Q2 2018

The Budapest Research Forum (hereinafter the ‘BRF’, which comprises CBRE, Colliers International, Cushman & Wakefield, ESTON International, JLL and Robertson Hungary) hereby reports its Q2 2018 office market summary.

Three new office buildings were delivered to the Budapest office market in the second quarter of 2018, totalling 57,060 sq m. GTC White House (21,560 sq m) and Promenade Gardens (22,500 sq m) both opened their gates along the Váci Corridor, while Graphisoft Park South (13,000 sq m) is the newest phase of the namesake park.

The total modern office stock currently adds up to 3,503,170 sq m, consisting of 2,838,720 sq m category ‘A’ and ‘B’ speculative office space as well as 664,450 sq m owner occupied space.

Please, find the full report below (pdf).

SAVILLS COMPLETES ACQUISITION OF Cluttons middle east business

  • Savills establishes Middle East platform following the acquisition of Cluttons network in the region
  • Business to be rebranded Savills during 2018

International real estate advisor Savills has completed the acquisition of Cluttons Middle East, a leading real estate consultancy business in the region.  The business employs 190 staff in seven locations throughout the region, providing Agency, Management and Consultancy advice in both the Commercial and Residential sectors.  The acquisition, which was completed on 31 May will see Savills take full ownership of Cluttons Middle East, a business which has been established in the region for more than 40 years.

The business will be re-branded Savills during 2018. Cluttons Middle East’s 190 strong team will transfer to Savills global platform with immediate effect. The full retention of Cluttons Middle East leadership team and employees will ensure clients not only continue to benefit from the same regional expertise but also benefit from Savills global platform.

The region has been a strategic target for Savills, and the acquisition sees Savills establish its first wholly owned business in the Middle East having previously been represented by associates in the region. This new Savills business in the Middle East provides a vital bridge between Savills expanding European business and its established Asian operation, further strengthening Savills global coverage. Savills has developed some strong relationships with its associates in the region over many years and while the formal associations will come to an end, the firm expects to continue cooperating with its former partners in the future.

Mark Ridley, Savills Deputy Group Chief Executive, says: “The Middle East region is key to the global economy and its continued economic development, increased government investment and a young population will continue to accelerate its significance.

“The acquisition of Cluttons Middle East geographically links our European and Asian business by enhancing our EMEA platform.  With a market leading position, and strong local leadership, we will be able to offer a high quality service to both existing and new clients as we look to expand our platform of services.”

With offices across the UAE, Bahrain, Egypt, Oman and Saudi Arabia, Cluttons Middle East is the most established Real Estate Advisory business in the region, servicing a large portfolio of clients ranging from international corporate and institutional investors, to private individuals and families. The company has built its market leading reputation working on some of the region’s landmark residential, office, retail and industrial projects.

Steven Morgan, Chief Executive at Cluttons Middle East, comments: “Despite economic headwinds across the region in recent years, Cluttons Middle East has grown from strength to strength and Savills acquisition is testament to our current position in the market.  This acquisition by Savills is an incredibly positive  and exciting opportunity for all Cluttons Middle East clients and employees as it will merge our regional expertise with Savills global capabilities.  We are confident that the new consolidated offering will enable Savills to become a market leader in the region from the outset and we look forward to introducing the new brand to our clients and the wider market in the Gulf.”

Across the region, Savillsthe Cluttons Middle East team will continue to lead the business, comprising; Steven Morgan, Chief Executive; Harry Goodson-Wickes, Head of Northern Gulf; Murray Strang, Head of Dubai; Ed Carnegy, Head of Abu Dhabi; Suzanne Eveleigh, Head of Sharjah; Ihsan Kharouf, Head of Oman; and Richard Paul, Head of Professional Services.

Budapest Business Journal Special Report with Adorjan Salamon

Congratulations on celebrating 25 years in business. What have been the highlights?

The company started operations in the real estate market in 1993 and begun expanding its range of services very early on. As a declaration of its professional approach, the company narrowed its focus to commercial real estate in 2004. ESTON has earned – and maintains – a strong market position in this sector where the main competitors are local offices of the biggest global real estate service providers. Since 2010, ESTON offers customized solutions in the property management industry as well; in fact, this has become one of ESTON’s most dynamically evolving departments. In September 2017, ESTON and Savills formed professional association with the aim of extending the company’s services to institutions and property companies looking to invest in Hungary, as well as to introduce Hungarian clients to the wider European market through Savill’s extensive network of offices. By now, ESTON’s team and market share, as well as our annual turnover, are the largest in the company’s history and I am sure we can further grow in the current market situation.

How has the market changed since company’s establishment?

We saw a full round of the CRE market life cycle with an accelerating upswing starting in the early ‘90s, only to be hit by the crisis. And again, market fundamentals are continuously improving, market players are optimistic as the overall health of the sector has been restored and available funding seems to be abundant. As I see it, the market has become more segmented, both in geographical terms and by means of product features and, following a refreshment of the investors’ and developers’ scenes (exchange of many market players), the activities and market shares of domestic companies have strengthened remarkably. In short, the Hungarian property market is mature and much more professional than 25 years ago and the same applies to ESTON as well.

How do you evaluate the Budapest office market in 2018? How do you think it will develop?

The Budapest office market is evolving with increasing dynamics and as such, it is a very interesting, yet challenging environment for property professionals. Class “A” offices are sought after and time management of office lease transactions has become extremely important as landlords are still in a strong position at negotiations. We must emphasize the importance of careful planning, as we have gained special expertise in representing tenants and landlords. As such, ESTON was awarded for closing Nokia Networks’ 25,000 sqm deal with the title “Office Transaction of the Year”; on the other hand, by means of a 10,300 sqm prelease agreement, we successfully contributed to the relocation of Fundamenta to the Hill Side Offices scheme, which was the biggest prelease in 2017. Development activity intensifies this year, which could bring a temporary, though not lasting, stop to market trends.

 Are there any obvious trends to be identified?

Dynamically decreasing vacancy has been a clear indicator of office demand exceeding supply. In 2018, more offices may be completed than in the last three years together (260,000 sqm); on the other hand, preliminary occupancy of offices under construction is very attractive. Rents are on the rise while yields are still diminishing and development lots are in great demand. Developers still believe in expansion and I also see opportunities, niches, in the market where value may be generated. I think landlords may maintain their strong negotiating power in 2018, which would be reflected in a growing difference in rents in different office classes.

And what is the picture for the investment market? How has this changed over the years and what do you predict for the future?

Historically, Germany based investors dominated the market for a long period. After the crisis, and following a restructuring of the portfolios, new investors appeared with different risk sensitivity. It is clear now that the Hungarian real estate investment market has recovered and investment volumes have returned to a healthy level. Also, the increasing importance of local investors can be identified; Hungarian entities’ investments grew to 40% out of the annual investment volume as their focus shifted towards pricier assets. I think, this latter trend continues in 2018 as well.

Compared to your 25 years in business, property management is a relatively new area for you, yet you have already won several prizes. What do you put your success down to?

Flexibility and trustworthiness are the foundations of our professional services and this is especially true in property management. We hire experts who pay attention to details and are committed to deliver the highest standard of services to our clients. The portfolio of office buildings we manage, now more than 200,000 sqm, has continuously and dynamically expanded since the establishment of our PM department and we are confident that we can further grow our market share in 2018 as well.

Source: Budapest Business Journal (May 4 – May 17, 2018)