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!


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).

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BRF Office Market Report 2018 Q1

Two new office buildings were delivered to the Budapest office market in the first quarter of 2018, totalling 18,280 sq m. In the CBD Markó Offices 9 was handed over on 2,630 sq m, whilst the new D phase of Váci Greens was completed with 15,650 sq m in the Váci Corridor.

Furthermore, one asset was added to the BRF stock as in the future it will operate as an office building again.The total modern office stock currently adds up to 3,446,110 sq m, consisting of 2,781,660 sq m category ‘A’ and ‘B’ speculative office space as well as 664,450 sq m owner occupied space.

As the result of our annual stock revision, 1 building was excluded from the modern stock and further 46 buildings GLA’s were amended due to re-measurements taken place over the beginning of 2018.

The office vacancy rate has decreased to 7.3%, representing a 0.2 pps reduction quarter-on-quarter – the lowest rate ever recorded on Budapest office market. In line with the preceding quarters, the lowest vacancy rate was measured in the South Buda (2.7%) submarket whereas the Periphery still suffers from an overwhelming 31.2% vacancy rate.

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WING office buildings represented by ESTON

ESTON International and WING Zrt. have been working together for more than twenty years. As a result of the fruitful cooperation ESTON is going to do exclusively the leasing of WING Zrt.’s office buildings (Skylight City, Studium Office building, Máriássy Modern and Váci 175).  

Skylight City, situated on Róbert Károly ring road, close to Váci street, which used to give home to Material Center furniture store has recently been renovated and now offers office and retail space in accordance with modern requirements. The technical and architectural features of the building deriving from its previous function make possible the creation of environment conscious, people oriented work spaces. The huge glass surfaces, the inner atrium with a glass roof and the spacious area around it create a unique atmosphere in the building. The layout of the building offers solutions for companies which require large, contiguous office space. The underground garage offers electric charger and bicycle sheds with changing rooms and shower for the employees. The success of the project is shown by the fact that the occupancy rate of office building was 65% prior to its handover in spring.

One of the big advantages of Studium Office Building is its great accessibility. It can be found close to the city centre, on the riverbank of the Danube, next to Corvinus University and the Great Market-hall. The M3 and M4 underground stops, several tram stops are within a few minutes’ walk, but there are also buses and trolley buses in the area. The office building is accessible not only by public transport but also by car, parking is made convenient by the two-storey underground garage, where there is public garage too. Due to the building’s excellent features and high technical standard there is just one office area for lease. It has beautiful panoramic view on the Danube and is ideal for tenants for whom the vicinity of the university counts as an advantage.

The building complex in Máriássy street located at the Pest side of Rákóczi bridge is a unique spot in Budapest. One of the buildings in the complex is built in modern style, while the other building used to be the Calf market hall (Borjúvásárcsarnok) and is now renovated at a high standard in loft style. Its location makes it easy to reach both the Buda side and the Pest side quickly: the M1/M7 motorways can be reached in 15 minutes by car, the city centre in 10 minutes by car, while the airport in 20 minutes by car. Trams 1 and 2 can be reached easily within a short walk, which provide access to underground lines M3 and M2. In Lurdy shopping mall, which is next to the building, you can find some restaurants, shops (bank, post office, pharmacy, drugstrore, etc.), gym, cinema and further service providers are expected to open their business there. The success of our work and the favourable location are shown by the high occupancy rate.

VÁCI 175, situated on the most well-known office corridor of the capital in Váci street, is an office building on four floors, which is easily accessible by car and by M3 underground as well. Duna Plaza shopping mall, which is in the vicinity, provides a wide range of services for the area’s residents and workers as well. Thanks to ESTON’s cooperation, occupancy rate is 100% in the office building. There is one leasable office area downstairs with street entrance ideal for retail shop or show room.

Mr. Adorján Salamon, owner and General Manager of ESTON said: “We are very happy to be working on this diverse office portfolio, we are proud of our common past with WING Zrt. and of our common successes. I think that from this wide selection we can provide an office solution for our Clients which perfectly suits their needs. We are happy to continue the cooperation in the future with WING Zrt with our enthusiastic and committed office leasing team.”

Market Report – Modern offices 2017

In 2017 about 80 thousand sq. m new office area was handed over; this figure is smaller than that of last year or the one previously expected. More than half of the newly delivered office area (42.5 thousand sq. m) can be found in the South Buda region, where new office buildings have been built for the first time since 2010.

The biggest new building is the Hungarian Nobel Prize winners’ Park I (24000 m² in South Buda), where Ericsson is located.

The building of further 410 thousand sq. m new offices has begun; out which about 265 thousand sq. m could be handed over in 2018 (in 15 buildings). The office stock of Váci Corridor will almost reach one million sq. m by the end of 2019; this is a sought-after area, which is shown by the fact that the current occupancy rate of the offices is not worse (41% on average) than the market average despite the concentrated developer’s activity.

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ESTON International has won a new significant office-lease tender

East-West Business Center – Unique opportunity in the heart of the city

ESTON International has won the (co-exclusive) office-lease contract of East-West Business Center, which is an iconic building of Budapest. Thanks to the big, contiguous office space and its excellent accessibility we can offer a unique opportunity to our Clients.

The office building complex, which is owned by Erste Property Ltd., was renewed twice, once in 2008 and later in 2017. The technical building system was completely changed and modern social areas were created. The main hall and reception, furthermore the lift foyers and corridors were given modern design, the facade of the building is highlighted by new lighting system. During renovation they paid attention to environmental conscious solutions, as a result electric charger stations for cars and safe bicycle storage together with changing rooms and showers were established in the two-level underground garage.

The property is situated at an iconic location of Budapest, opposite the Hotel Astoria, at the exit of underground line M2. The first building of the National Theatre stood in its place until 1908, after it was demolished, the area was used for various purposes – huts were build here then later war garages, then it was used as a parking lot and a cinema also stood here. Finally it was sold in 1989 and two years later Budapest’s first modern office building, the East-West Business Center was handed over ceremoniously.

The office building offers high level, ’A’ category office areas on nine floors, with a total of 23,000 m² leasable office space. A completely revamped, exclusive office building able to satisfy all tenants’ needs is waiting its future tenants, they can offer solutions for smaller and bigger companies as well – with the smallest rentable unit being 300 m², contiguous office space of over a thousand square metres is available too.

According to property management agencies the building provides unique opportunities in the current office market situation since it is ideal for companies which would like to expand in the saturated city centre area, and also for colleagues for whom good public transportation is indispensable.

“We are very proud to be working on the office lease of East-West Business Center. We are undertaking this significant assignment enthusiastically with our committed team of consultants. Since there is a lack of available big, contiguous office space in this area and since the area offers wide range of services, in addition the property is easily accessible, we expect that we will close our assignment successfully within a short time” – said Mr. Adorján Salamon, Managing Director of ESTON International.

ESTON provides long term leasing solution for Nielsen

As the result of the successful cooperation between ESTON International and AC Nielsen Piackutato Kft. a long term lease agreement was signed in September at the Vaci Utca Center office building.

ESTON’s tenant representation team worked out the leasing strategy together with the local top managers, facility manager and the real estate manager of Nielsen in the New York HQ.

„During the consultancy work, lasting more than two years, we evaluated all the possible scenarios following the upcoming lease expiry of the client and we did our best to list all the possible transparent leasing alternatives for them. Nielsen was introduced several relocation options; however, we found the lease renegotiation would be the most effective and competitive solution for them at their current building. The management of Vaci Utca Center did a great job operating and maintaining the building in the last few years which helped us to achieve one of our most important target during the tenant representation, which was to refresh and modernize the Nielsen office according to the recent trends. We succeed to optimize the leased areas during the renegotiation of the terms so Nielsen could have a more efficient seating. During the renegotiation of the financial terms, we also paid attention to the incentive package; which, as we achieved, supports Nielsen in the new fit-out and eases the operational costs as well” – said Tamas Pal, ESTON’s Head of Office Agency.

Office market report Q3 2017

ESTON International hereby reports The Budapest Research Forum’s Q3 2017 office market summary.

Two new office buildings were completed in Q3 2017; Graphisoft Park Start-up building was handed over on 2,500 sq m in North Buda, while Nexon’s 4,000 sq m owner occupied headquarter was handed over on the Váci Corridor submarket. The total Budapest office stock totalled 3,353,235 sq m. The total stock comprises 2,684,655 sq m of Category ‘A’ and ‘B’ speculative, and 668,580 sq m of owner occupied buildings.

Vacancy rate has continued to decrease by 1.0 pps quarter-on-quarter to 7.6%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded on the South Buda submarket (3.3%), whilst the Periphery submarket registered again the highest figure (28.5%).

Demand in Q3 2017 increased by 67% compared to the previous quarter, comprising 164,985 sq m. Owner occupation deals represented the highest share of the demand in the third quarter with 32.7% share, followed by new deals with 27.6%. Renewals equated 24.8%, while expansions accounted for 6.4%. Share of pre-lease agreements represented 8.3% of the total leasing activity.

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Office market report Q2 2017

ESTON International hereby reports The Budapest Research Forum’s Q2 2017 office market summary.

No new office buildings were completed in Q2 2017. The total Budapest office stock totalled 3,346,735 sq m. The total stock comprises 2,682,155 sq m of Category ‘A’ and ‘B’ speculative, and 664,580 sq m of owner occupied buildings.

Vacancy rate has continued to decrease by 0.6 pps quarter-on-quarter to 8.6%, which is the lowest rate ever on record. The lowest vacancy rate is still recorded on the South Buda submarket (3.1%), whilst the Periphery submarket registered again the highest figure (33.1%).

Please download the whole report here: