PRESS RELEASE

Q1 2012
The Budapest Research Forum (BRF, which
comprises of: CBRE, Colliers International,
Cushman & Wakefield, DTZ, Eston
International, GVA Robertson and Jones
Lang LaSalle) hereby reports its Q1 2012
office market analysis.

The total Budapest office stock (including owner-
occupied and speculative buildings) reached
3,175,807 sq m in the first quarter of 2012. BRF
registered only one new office handover (`IQ
Offices) in Central Pest submarket; with this, the
total modern office stock includes 2,622,224 sq
m of modern `A- and `B-category speculative
office buildings and 553,583 sq m owner-
occupied buildings.

Having reviewed the overall stock it transpires
that 18 buildings increased in size due to a
change in the measurement system employed,
which increased the stock by 14,565 sq m.
Furthermore, BRF re-classified 13,500 sq m of
office area into `speculative category.

The total volume of demand extended to 53,249
sq m in Q1, which is almost one-third less than in
the first quarter of last year. In contrast with the
record levels of 2011, the leasing volume of Q1
2012 reverted to the average levels in line with
the preceding years, when take-up accounted for
circa 50,000-60,000 square meters per quarter.

The office vacancy rate now stands at 20.4%,
which is 1.2 percentage points higher than in the
previous quarter. This increase is due to the
negative net absorption value, stock revisions
and the vacated former K&H Bank HQ in the CBD.
The lowest vacancy rate (16.2%) was measured
in the Central Pest submarket, whilst the highest
vacancy level is still seen in Periphery region
(33.1%).

BRF registered 128 signed lease agreements in
Q1 2012, with an average deal size of 416 sq m.
This size is 21.5% lower than in Q1 2011. There
were 9 contracts in Q1 with volumes greater than
1000 sq m each, covering 4 lease extensions, 3
new leases and 2 pre-leases. The largest
transaction of the first quarter was Vodafones
lease extension for its Shared Service Centre with
a volume of above 8,000 sq m in the Arna
Corner office building.

The major new lease transactions comprised:
National Innovation Office (Nemzeti Innovcis
Hivatal) on 2,400 sq m in Krausz Palace and
DBHs lease in Greenpoint 7 for 1,200 sq m. Two
new pre-lease agreements have been concluded,
bringing a total of 8,000 sq m lease in Skanskas
`Green House in Central Pest submarket. The
share of new lease agreements stood at the same
level as in the previous quarter at 40.5%, while
lease renewals reached 38.7% of the total
demand.



Building name Size (sq m) Type
IQ Offices 2,353 speculative
Total 2,353


PRESS RELEASE
Q1 2012

Summary:


2012 Q1 Budapest
Completions (m) 2 353

Speculative Stock (m) 2 622 224
OO Stock (m) 553 583
Total Stock (m) 3 175 807
Vacancy (m) 649 392
Vacancy Rate (%) 20,4%

Pre-lease (m) 8 000
Lease expansion (m) 3 082
New Lease (m) 21 565
Lease Renewal (m) 20 602
Total Leasing Activity (m) 53 249

Net absorption (m
2
) -25 161


Further information:

CBRL
1el: -36-1-34-3040
Managing Director: adrienne.konthurcbre.com
Research: gabor.borbelycbre.com
Colliers International
1el: -36-1-336-4200
Managing Director: tim.hulzeboscolliers.com
Research: nora.telekicolliers.com
Cushman & Wakefield
1el: -36-1-268-1288
Managing Director: charles.tayloreur.cushwake.com
Research: orsolya.nemetheur.cushwake.com
D1Z
1el: -36-1-269-6999
Managing Director: balazs.cziradtz.com
Research: eanna.maksaydtz.com
Lston International
1el: -36-1-8-1000
Managing Director: adorjan.salamoneston.hu
Research: daniel.pintereston.hu
GVA Robertson
1el: -36-1-32-2050
Managing Director: rtilkigarobertson.com
Research: rpappgarobertson.com
Jones Lang LaSalle
1el: -36-1-489-0202
Managing Director: erenc.urulyaseu.jll.com
Research: rita.tuzaeu.jll.com



BRF office submarkets: