Budapest, August 15, 2012.

The Hungarian office of Colliers International has launched its latest office market report. “The office market was stable in H1 2012, total office stock, take-up volumes and rents have not changed much from 2011, while the vacancy rate showed a slight increase.” – said Tim Hulzebos, managing director at Colliers International Hungary.
The total modern office stock marginally increased in H1 2012, with only one registered new completion during this time. There were no new starts in H1 2012, although there are a few projects in the pipeline that are expected to be completed near the end of 2012 or in early 2013, while others will come to market in 2014.

Distribution of Transactions H1 2012Concerning the demand, office take-up totaled 149,000 m² in H1 2012; a lower figure than take-up numbers for the same period in 2011. New take-up and renewals accounted for 85% of all activity, while expansions totaled almost 16,000 m², more than 10% of all office activity.
Renegotiations remained the dominant take-up activity. Large tenants who leased more than 5,000 m² of space preferred to stay in the same location under more favourable conditions rather than moving offices. Significant renegotiation deals in H1 2012 included VOCH Vodafone Operations Centre (8,000 m²) and Citibank (10,000 m²).
“Colliers was involved in two of Hungary’s biggest transactions in 2012, representing IT Services in a 16,000 m² renewal and expansion deal in Infopark. Colliers was also involved in the biggest relocation transaction of the past two years, in which T-Systems leased 15,000 m² in the South Buda Business Park.” – said Tim Hulzebos.

Sustainability continued to be high on the priority list of tenants. LEED or BREEAM certified buildings are becoming a must for any new development, and tenants also achieved success in influencing owners to make sustainable upgrades and renovations to existing buildings. Colliers played a leading role in advising tenants like Citibank and recently assisted in making Vaci33 a green building. Green considerations were also an important factor in Avis Budget Group Business Support Centre Kft. choosing Green House for its office location, a new development set to open in H2 2012.

Colliers International expects take-up to remain strong in H2 2012 but the overall volume for 2012 will stay below 2011’s take-up level of 300,000 m².
The only major completion expected this year is the 17,500 m² Green House, developed by Skanska. The 15,500 m² Váci Greens project, developed by Atenor Group, is scheduled to open in early 2013.
“We foresee no major changes in vacancy or rent levels in H2 2012. Stagnation is expected in every market segment and renegotiations are likely to remain the major driver of office market activities.” – summarized Tim Hulzebos.

The complete office market report of Colliers International Hungary can be downloaded from here.

Source: Colliers International