02. August 2010 
Print
Print
Stabilization on the industrial market
If 2008 was a year of records and 2009 the year of adapting in the Budapest industrial real estate market, then 2010 can so far be considered the year of stabilization. In terms of supply - which is in a declining trend -, leases and investments the market in the first half of 2010 has moved towards balance. Due to the development and changes of the market, a new, up-to-date snapshot of the market is warranted, Colliers International is planning to conduct a comprehensive update of its industrial database to get a clearer, more precise picture of the market in the near future – said Tamás Beck, director of industrial sales & leasing at the Hungarian office of Colliers International.
Developer activity declined within that period, with 46,000 sqm of speculative space delivered in the first six months, the one built-to-suit (BTS) investment was not yet completed by the end of the period. As a result, the overall stock of industrial space built for lease rose to 1.6 million sqm, of which 1.13 million sqm (71%) were speculative developments. In the second half, Colliers International expects a similar delivery figure, bringing the annual total to some 80,000 sqm, or around half of what was handed over in 2009.
Compared to the extremely low take-up figure (26,000 sqm) of the first half of 2009, 70,000 sqm of new lease agreements were signed in the first six months of this year. This figure includes 20,000 sqm (29%) of expansions. However, as opposed to earlier years, when logistics firms accounted for 40–50% of take-up, the majority of contracts in H1 involved end-user companies. There were also a high number of renegotiations and extended leases.
„The pipeline for H2 also looks promising, with similar take-up forecast, which would bring the full-year figure to around 140,000 sqm, or the same as last year.” – forecasted Tamás Beck.
Absorption and vacancy
As there was also a certain amount of industrial space going vacant in the period, the take-up of the first half was enough to bring net absorption to only a slightly positive territory, at 12,500 sqm, which compares to the 55,000 sqm figure for 2009 overall.
Developer activity declined within that period, with 46,000 sqm of speculative space delivered in the first six months, the one built-to-suit (BTS) investment was not yet completed by the end of the period. As a result, the overall stock of industrial space built for lease rose to 1.6 million sqm, of which 1.13 million sqm (71%) were speculative developments. In the second half, Colliers International expects a similar delivery figure, bringing the annual total to some 80,000 sqm, or around half of what was handed over in 2009.
Compared to the extremely low take-up figure (26,000 sqm) of the first half of 2009, 70,000 sqm of new lease agreements were signed in the first six months of this year. This figure includes 20,000 sqm (29%) of expansions. However, as opposed to earlier years, when logistics firms accounted for 40–50% of take-up, the majority of contracts in H1 involved end-user companies. There were also a high number of renegotiations and extended leases.
„The pipeline for H2 also looks promising, with similar take-up forecast, which would bring the full-year figure to around 140,000 sqm, or the same as last year.” – forecasted Tamás Beck.
Absorption and vacancy
As there was also a certain amount of industrial space going vacant in the period, the take-up of the first half was enough to bring net absorption to only a slightly positive territory, at 12,500 sqm, which compares to the 55,000 sqm figure for 2009 overall.
