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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.
Hosting a Shared Services Center in an office building requires a great spectrum of services and know-how from the agency side. Flowserve chose ESTON International based on our experience.
We welcome them to their new office in Nordic Light. Congratulations to Nikolett Svéger, Senior Consultant for her work and contribution.
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!
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).
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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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.”
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.
Please, click the title for the full report.