18. Februar 2010 
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2010 could be the year of stabilization at the industrial market
Based on the report of Colliers International, some of these locations could be well suited for the development of projects like city logistics parks in the capital.
Rental levels decreased during the first half of 2009, and numerous owners advertised empty space for discounted rents. During the second half of the year rent stabilization was more dominant. Therefore the net rent for big box buildings was between € 3.2-3.8 sqm/pcm, while in case of city logistics buildings it was € 5.0-5.5 sqm/pcm.
Except for a few rare cases, there has been no instance of substantial pricing decrease, even if sellers’ flexibility understandably increased, although the reason for the low number of transactions is not primarily pricing but the lack of buyers at the moment.
2010 could be the year of stabilization, if the market moves towards balance. A drastic decrease in the number of speculative developments is expected, especially relating large international developers with larger floor areas. As a result, the significance of pre-lease agreements will grow, although in some cases the financing and realization of such projects for the developers is still a challenge. Due to such reserved development activity, Colliers forecasts 120,000 sqm of pre-leased and built-to-suit buildings to be constructed in 2010, which is far behind compared to the delivery of previous years. The prediction of tenant activity is also approx. 120,000 sqm leased space in 2010. This means, the vacancy level would decrease, to roughly 14% based on the calculations.
Planning ahead will be increasingly significant for tenants with large floor area needs, as small tenants will invariably experience a supply market, and larger tenants are forecast to experience a demand market.
“Following the maturity of discounted products, due to the changed market circumstances, tenants will encounter higher rental rates and firmer lease conditions in 2010.” – summarized Tamás Beck.
Rental levels decreased during the first half of 2009, and numerous owners advertised empty space for discounted rents. During the second half of the year rent stabilization was more dominant. Therefore the net rent for big box buildings was between € 3.2-3.8 sqm/pcm, while in case of city logistics buildings it was € 5.0-5.5 sqm/pcm.
Except for a few rare cases, there has been no instance of substantial pricing decrease, even if sellers’ flexibility understandably increased, although the reason for the low number of transactions is not primarily pricing but the lack of buyers at the moment.
2010 could be the year of stabilization, if the market moves towards balance. A drastic decrease in the number of speculative developments is expected, especially relating large international developers with larger floor areas. As a result, the significance of pre-lease agreements will grow, although in some cases the financing and realization of such projects for the developers is still a challenge. Due to such reserved development activity, Colliers forecasts 120,000 sqm of pre-leased and built-to-suit buildings to be constructed in 2010, which is far behind compared to the delivery of previous years. The prediction of tenant activity is also approx. 120,000 sqm leased space in 2010. This means, the vacancy level would decrease, to roughly 14% based on the calculations.
Planning ahead will be increasingly significant for tenants with large floor area needs, as small tenants will invariably experience a supply market, and larger tenants are forecast to experience a demand market.
“Following the maturity of discounted products, due to the changed market circumstances, tenants will encounter higher rental rates and firmer lease conditions in 2010.” – summarized Tamás Beck.
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