The Budapest Research Forum (members: CB Richard Ellis, Colliers International, Cushman & Wakefield Healey & Baker, DTZ, and Jones Lang LaSalle) reports its joint data for the second quarter of 2005.
The second quarter of 2005 has experienced record letting activity again, totalling 66,100 sq m of leased area. Demand in the first half of the year exceeded the total area of transactions in the first six months of last year by 23%. A number of large transactions were recorded during the quarter: E-on will establish its Headquarters in Roosevelt House (11,000 sq m), Budapest Bank has renewed its lease in Váci út (13,600 sq m), while SAP has signed a
pre-lease agreement for approximately 7,000 sq m in Graphisoft Park. Bank Center, East-West Business Center and Infopark buildings attracted the most new tenants (4 each), while Buda Square, Dorottya Udvar and the newly completed Víziváros also had a successful quarter.
Non Central locations continued to be the most popular representing more than 53% of the total take-up, followed by the CBD sub-market where more than 16,700 sq m (25% of total office lettings) was transacted.
Three new office buildings were completed in the Central location, two on the Pest side, namely Xenter 13, the expansion of Globe 13 (7,048 sq m office space) and Mozsár Trade Center (2,511 sq m) in the 6th district. Furthermore, Víziváros Office Center has been delivered with 12,745 sq m office area in Kapás utca in the 2nd district. The total stock of modern office space in Budapest now totals 1,525,951 sq m.
The overall vacancy rate increased slightly to 14.25% by the end of June. However, vacancy rates have fallen in all of the sub-markets, apart from the Central location which saw all of the quarter's new completions.
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