Cushman & Wakefield (C&W) the world’s largest privately held commercial real estate services firm closed 2012 with a record level of leasing activity in the Budapest office market. The end result was boosted by a strong Q4 where C&W closed over 30,000 sq m with two major office lease renewals and another 12 office lettings which increased the total office area transacted by C&W to over 68,000 sq m.
This is an all time high yearly office take –up for C&W and represents an increase on 2011 levels when the Budapest office market showed significant activity with a record total take-up of close to 400,000 sq m.
Gergely Pados Partner, Head of Office Agency at C&W Budapest commented on the success: “Although we are delighted to close major transactions such as the lease renewal of Raiffeisen Bank in Akadémia Bank Center on behalf of a global real estate investment manager we are just as proud of concluding about 30 brokerage transactions ranging from 50-1,000 sq m, despite very challenging economic conditions”.
This aligned to our long term strategy to proactively pursue all potential leads and introduce and close as many transactions possible in our carefully selected best of class landlord stock.
Although the final numbers for 2012 are under finalization, the total transaction volume across the entire Budapest market will be 15 - 20% less than in 2011. This still represents a healthy market activity given the size of the Budapest market. Renegotiations still dominate the market and the vacancy rates will remain above slightly over 20%, which will continue to put considerable amount of pressure on the market.
“Unless the Hungarian market starts attracting new companies we will continue to see renegotiations dominate the market for 2013. Therefore, despite the very limited speculative developments we see only a slow decline in vacancy rates and continued pressure on rents and incentive packages going forward”- Pados added.
C&W Budapest was founded in 1993 and is by now responsible for the leasing some of important landmark mandates as the leasing of Capital Square, Krisztina Palace, Infopark A, Millennium Towers, EWBC and MOM Park Offices etc. The team has been working on many outstanding office buildings with great success in the past years and has been awarded Best Advisory firm in Hungary in 2012 by Euromoney.