What to Expect in the Office Market?

Now, it is clear that 2017 was one of the most exciting years of the past decade on the office market. Although the volume of finished office developments is quite low, we can now expect a 500 thousand square meter expansion in the Budapest office market with the development of ongoing projects. 
Meanwhile, the vacancy rate is also at a record low level. Furthermore, a new driving force, the headquarter trend has emerged on the market, which can further increase office space growth too.

Changing tenant needs

In recent years, the tenant's needs have changed a lot, and today it is a basic requirement on the demand side to make the workplace a pleasant environment for the employees. More and more tenants need to provide more extra services to workers who spend long hours in the office. This is why it is rather common that there are sporting opportunities within the building, larger community spaces, resting or playing rooms - which contribute to increasing the well-being factor. In addition, companies put great emphasis on green solutions, sustainability and energy saving. And here's where the built-to-suit and headquarters trends comes into view.

Photo: Mol headquartes

Built-to-suit and headquarters trend

The so-called "bulit-to-suit" type of development, that means the construction of office buildings tailored to tenants’ needs, is one of the latest trends. On the one hand, there is less risk from the developer, as there is little chance that the customer will step back; on the other hand, it is really an office where the prospective company can get maximum efficiency from work. One of its realization forms is headquarters type of development, which is, all departments of a company is relocated to one building.

Photo: Telekom headquarters

Only a few examples of this are Mol's headquarters in the framework of BudaPart development, which contributes about 83 thousand square meters of office space to the Budapest office market. Similar development is the Telekom headquarters building, which is expected to be finished this year. Last year, Nokia Skypark joined the line in the Corvin quarter as well as the Ericcson headquarters, which will also be ready in the future.

Soaring future

In addition, there is a continuous movement on the Budapest office market. Many plans were announced in 2017, such as the Agora Park office complex of the HB Reavis Group, which is currently underway on Pest side of the Árpád Bridge, which is expected to be completed in 2023 in full splendor. For the time being, this building complex increases the volume of speculative developments, since it is not yet known who will be the tenants. However, construction works continue on both the Váci Road and the other parts of the city. Anyways, good news is that the office market in Budapest is soaring and is going to in the future too.

Source:

http://m.portfolio.hu/ingatlan/iroda/uj-trend-viheti-elore-a-fejleszteseket-az-irodaknal.271637.html