Property news

NEW SUCCESS OF ESTON’S TENANT REPRESENTATION TEAM – HORTONWORKS HAS RECENTLY EXTENDED THEIR OFFICE LEASE IN CENTRAL UDVAR OFFICE BUILDING IN BUDAPEST

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!

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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 PR OFFICE Q3 2018_EN_ESTON

BRF PR OFFICE Q3 2018 HUN_ESTON

BRF Q3 2018 industrial PR_ENG-FINAL_ESTON

BRF Q3 2018 industrial PR_HUN-FINAL_ESTON

ESTON INTERNATIONAL IS 25 YEARS OLD

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

ESTON’S TEAM HAS WON THE OPERATION OF ADVANCE TOWER OFFICE BUILDING

ESTON’s International Property Management team (PM), who have been present on the market for 25 years, has won the operation of the newly handed over Advance Tower Office building, which is owned by Futureal-group. ESTON is especially proud to be working with a prominent developer such as Futureal. The office building has a leasable area of 12,100 m² and they also possess BREEAM certificate. The building process is in its second phase now. 

ESTON started the operation of its property management branch (PM) in 2012 with the aim to become the market leader in the property management market. The primary task of the branch is to support the Client in carrying out their portfolio plans, furthermore to maximize the profit of Owners and Investors by enhancing tenants’ satisfaction. Their success is highlighted by the increasing number of Clients. What’s more, their work was awarded by winning the prize of the Property Management Company of the Year in 2017 at the Office of the Year competition.

The 8-storey ’A’ category office building developed by Futureal-group was designed by Paulinyi-Reith & Partners Architectural Studio. The specially designed glass surfaces in Advance Tower ensure that the offices in the building get ample natural light. The property is equipped with smart solutions and sustainable technologies, therefore intelligent building management, automated shading system optimizing the sunshine, intelligent watering system on the roof-garden and low-emission heating-cooling system can also be found in the property.

The first phase of the Advance Tower, which has also got BREEAM-certificate, was designed and operated according to the WELL Building Standard qualification (WELL). The aim of the WELL-qualification is to establish office buildings which take into consideration not only the environmental impact but also the health, well-being and comfort of the people working there. The International WELL Building Institute with its headquarters in Washington examines the effects buildings have on the human body, people’s health and general well-being on the basis of seven aspects – air supply, water, access to healthy food, natural light, physical exercise, comfort and mental fitness. Currently there are more than 30 office buildings around the world which possess WELL pre-qualification. Futureal-group, the first European developer, managed to obtain WELL Platinum pre-qualification for three of its projects.

Mr. Adorján Salamon, General Manager of ESTON said “We are very proud that our PM team achieved such a big success in such a short time and that we could expand our portfolio with the operation of a new office building. We guarantee that thanks to our devoted experts our new Partners will get the best possible service and we will do everything to satisfy all their needs.”

“The innovations based on WELL-qualification set the trends of the next decade in the office market. Advance Tower is the trailblazer of this trend not just in Hungary but in Europe too” – said Tibor Tatár, General Manager of Futureal.  “Futureal-group is committed to realizing all its future office-building developments according to the WELL principles, hence people’s health as part of environment consciousness is considered to be the most important factor in  the design process” – he added.

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.

Investment

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).

New member on board of ESTON PM Team

István Földi – Senior FM Manager

As a result of continuous developments and innovative ideas ESTON International continues to be successful, which is reflected not only by figures, but also by the fact that in 2017 and in the first half of this year our portfolio was extended by several new projects and we have more and more satisfied clients by our side.

The firm’s dynamic development calls for expanding our team. ESTON firmly believes that the enhancement of client satisfaction and the further strengthening of the company’s role in the property market can only be reached with committed and motivated colleagues, who see challenges as opportunities for self development. This is why we are happy to announce that we have a new member, István Földi on board.

István joined ESTON’s team as Senior FM Manager in July. The expert has about ten years’ work experience in the field of facility management. He has worked in the field of sales, quality control, and FM due diligence among others, furthermore as a facility manager he was responsible for the operation of office buildings, industrial- and logistics facilities and commercial facilities.

“I am very happy to welcome István in our team in this very active, challenging period. We are especially proud that thanks to István our Property Management team can control the FM duties with our own team member, which opens up new possibilities regarding client satisfaction.” – said Mr. Adorján Salamon, Managing Director of ESTON.

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.

BRF Industrial Property Market Report 2018 Q1

In the first quarter of 2018, two new buildings were handed over with the size of 18,020 sq m: a 11,020 sq m warehouse in East Gate Business Park, and a 7,000 sq m hall in the next phase of Budapest Dock Szabadkikötő building C. Furthermore, one existing building was included in the stock due to adequate quality and occupational status; the second building of Logicor’s Fehérakác property raised the industrial stock with 4,400 sq m. The total modern industrial stock in Budapest and its surroundings stood at 2,068,900 sq m at the end of Q1 2018.

Total demand amounted to 103,790 sq m in Q1 2018, marking a 45% increase over the figure noted in the same period last year. Lease renewals accounted for 72.7% of the quarterly volume, while the share of new leases was 21.8%. Expansions stood for 5.5% of the quarterly volume. No pre-lease agreement was signed in the first quarter of 2018.  24 leasing transactions were recorded in the first quarter, out of which two agreements were signed for more than 10,000 sq m. The average transaction size was 4,320 sq m during the quarter, which is one and a half times the average level of the previous five years’ first quarters. 98% of all leasing activity was recorded in logistics parks, where the average transaction size was 4,620 sq m, while the average deal size in city logistics schemes equalled 1,075 sq m.

The two largest transactions of the quarter were lease renewals.  HOPI at Goodman Gyál Logistics Centre renewed its contract on 21,700 sq m, while in Prologis Park Budapest – Sziget Schneider Electric signed a lease renewal for 19,960 sq m. The largest new lease agreement amounted to 7,000 sq m and was signed in Budapest Dock Szabadkikötő. The largest lease expansion was recorded in Prologis Park Budapest – Batta on 4,180 sq m.

Please click the title for the full report.

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.

Please click the title for the full report.

ESTON PM team has a new member on board

Viktória Magyar – Operational director

The year of 2017 was an exceptionally good year in the life of ESTON International. Last year our portfolio expanded with several new contracts and we have got many new, satisfied clients by our side. The key to ESTON’s success is the continuous development and innovative ideas.

Our company has been growing dynamically as a result of developments, therefore we felt it necessary to expand our team in order to better support our development. ESTON firmly believes that increased customer satisfaction and stronger market position can only be attained in cooperation with committed and motivated colleagues, who see challenges as opportunities for growth. This is why we are proud to announce that Viktória Magyar has joined our team.

Viktoria joined the ESTON team in January as Operational director and as a member of the Property Management division she is responsible for daily operational tasks. She has more than fifteen years’ experience in the field of property market, and she was the division leader of JLL Property Management for many years.

Mr. Adorján Salamon, managing director of ESTON said: “The year of 2017 was a strong year in the domestic property market and the Property Management division of ESTON also increased its market share significantly. I expect the property market will continue to grow and also our company will close more deals this year. I am very happy that in this current buoyant, challenging market situation we can welcome Viktoria in our team and I trust we can achieve great success working together in the property market.”