Is this part of the cost-cutting switch over to CEE people have been warning about, for what seems like years now? Nokia says it’s going to be closing its Vienna-based headquarters for Central Europe and moving 60 jobs to Budapest. Those willing to follow the jobs two hours down the M1 are allegedly welcome to do so, but would they really be the same jobs (i.e. at the same salaries)? Wonder who’s looking for the office space for Nokai…
It doesn’t mean the company’s workforce at its factory in Savar can breathe easier, though, as half of the plant’s workforce are being given pink slips.
Just a couple items. First of all, Bank Center in Budapest continues its fine run of form with an announcement that it signed up Qatar Airways, and that it had concluded lease renewals on 35% of its total leasable area during the third quarter. Over the last 18 months, in fact, it’s concluded deals (new leases and renewals) on 45% of the building. Current occupancy rate? 85%. Asset management of the building is handled by GLL Real Estate Partners, while property management and leasing is by Avestus Real Estate.
One other matter is a city planning issue in Prague, as the city’s mayor announced today that it was unrealistic to hope that construction would begin anytime soon on the planned fourth metro line. That’s not good news for anyone who was counting on Line D opening to commuters by 2020. Somewhat ominously, the mayor also said there wasn’t really enough money in the kitty for the completion of work on the A-line extension to the airport, but that work must continue.
What crisis? Having just completed one mall in Hungary (Arkad Szeged), ECE has pushed on by beginning construction on its next project, Arkad II, which is essentially a continuation of Arkad I, opened 10 years ago in Örs vezér tere square in Budapest. The new mall will add 20,000 sqm of retail space to the existing mall, spread over three floors. The developers claims that when completed in 2013, the two spaces will form the largest shopping area in Hungary, with over 200 stores and 68,000 sqm of GLA. Renovation and modernization then awaits Arkad 1.
MOMentum offices in Budapest has lined up a new 1,200 sqm tenant beginning in January 2012. The Korean Cultural Center will be moving into the building, which is a development of REM Ingatlan and is now 42 percent leased. REM Ingatlan gave the exclusive leasing rights for the building to Colliers International.
Colliers International in Hungary reports that business trips have increased in the first half of 2011, with the number of guest night up by 3 percent compared to the same period in 2010. “Within this, hotels continued to perform above-average, with the number of guest nights rising by 7%. Four-star hotels performed particularly well, with growth exceeding 11%” – said Norbert Szircsák, researcher and valuation consultant at the real estate advisory firm.
The total nights spent by foreign visitors increased by 10 percent, a stat Colliers chalks up to the fact that Hungary held the rotating EU presidency role for that period. The average occupancy rate for hotels was 43%, with 5-star accommodations posting the best result (61%), followed by 4-star hotels (49%).
Total revenues of accommodation establishments increased by 6% at current prices, compared to the same period of 2010. Average room rates at three-to-five-star hotels in Budapest were between HUF 9,000 and HUF 31,000 in the January–June period.
Hopi Hungary has signed a lease agreement for 20,500 sqm of warehouse space ProLogis Harbor Park, extending its lease from Building L to Building J as well. Hopi was using Building L to provide services for Unilver ath the park which sits adjacent to the M6 motorway to the south of Budapest. The situation on industrial sector has been looking up as late, with the pace of leasing deals rising considerably.
Cushman & Wakefield reported that take-up improved in 2010 to 2.5m sqm, compared to just 1.8m sqm in 2009. On the other hand, the agency points out that output fell by over 1m sqm to just 580,000 sqm.
Ericsson Hungary has confirmed it will be staying at Science Park and expanding into a total of 14,500 sqm. In a “blend and extend” deal brokered by building owner Aviva Investors’ letting agency King Sturge, the high tech company will move into new space in the building as it becomes available. Ericsson has been expanding its R&D workforce in Hungary.