Csaba Zeley News Today

A hybrid work model, whereby employees use a combination of in-office and remote days, is increasingly becoming the norm in modern office complexes, writes real estate editor Gary J. Morrell.

The recently completed 12,500 sqm Academia office redevelopment and renovation project by ConvergenCE and Europa Capital in Pest’ District V is expected to achieve its final Well “Platinum” and “Gold” accreditation this spring. Successful developers now need to meet staff demands along with the additional costs, says real estate editor Gary J. Morrell.

The Budapest office pipeline is low; developers are exercising caution, and new projects are being put on hold given the uncertain economic, geopolitical, and cost environment. However, ongoing schemes are progressing, despite these issues and concerns over letting, office working practices and even how much time is spent in the office.

The office environment, its amenities and location are an intrinsic part of any project concept, design, and leasing strategy. This is in reaction to changing and ever more complex tenant and, in turn, staff demands. Sustainability accreditation from third-party organizations such as Breeam, Leed and Well have a range of requirements that are increasingly the norm for high-end developments and a basic expectation for tenants and staff.

This has been a restrained year for development activity in the office and retail fields. That in the industrial and hotel sectors, however, has been more dynamic. Investment activity has reflected the cautious wait-and-see strategy being adopted by investors towards the Hungarian property markets and, indeed, CEE and Europe as a whole.

The international freight and logistics service provider Transdanubia has signed a 24,000 sqm lease in the PT3 hall of HelloParks Páty. The new tenant is expected to take over the building by the end of 2024. The space will include classic high-rack storage elements, block storage and office functions.

The Budapest office pipeline is limited; builders are exercising caution, and new projects are not being initiated in an uncertain environment. Concerns include geopolitical issues, longer-term letting and demand, office working practices and the time spent in the office, rising development and construction costs, increasing maintenance and energy costs and more expensive debt finance. Despite this, ongoing projects are continuing.

Bettina Beke joined ConvergenCE's leasing team this month, according to a press release sent to the Budapest Business Journal.

The 12,500 sqm Academia office center redevelopment on the Pest embankment of the Danube in central District V has officially opened. Europa Capital purchased the 12,500 sqm building, then called Akadémia, in partnership with ConvergenCE as asset manager, inJanuary 2022.

The U.K.-based Breeam is the third-party sustainability accreditation system of choice with office developers in Central Europe, according to Colliers CEE research. This is followed by the U.S.-based Leed, with the two systems dominating the regional markets. Analysts argue that a more standardized approach or framework is needed, the direction for which is already being set within the new EU Taxonomy framework.