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HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

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BUSINESS JOURNAL BUDAPEST

VOL. 25. NUMBER 9

3

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Budapest Business

MAY 5 – MAY 18, 2017

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2017 5 – May 18, Journal | May

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SPECIAL REPORT

Office Market SPECIAL REPORT

Desperately Seeking Development Plots With a limited supply of suitable land in the historic center of Budapest, most office development is now being undertaken in out-of-center or suburban locations such as the Váci Corridor. 9 NEWS

The Early Bird Budget Hungary's Fidesz-led government has submitted its 2018 budget bill to Parliament, targeting a deficit of HUF 1.360 trillion, and spending more on defense, the economy, education, healthcare and pensions.3 SOCIALITE

Afternoon in the Land of Angels David Holzer finds himself pondering the pros and cons of hipsterization while in search of coffee (and somewhere open) on a trip to District XIII.37

Touch Over Tech

Future work expert Annemarie Muntz explains the need for soft skills and warns Europe, Hungary included, will face a dire skills shortage by 2050. 4-5 S N EW

The new office concept of IMMOFINANZ

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Budapest Business Journal | May 5 – May 18, 2017

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall NEWS EDITOR: Christian Keszthelyi EDITORIAL STAFF: Zsófia Czifra, David Holzer,

Levente Hörömpöli-Tóth, Gary J. Morrell, Claudia Patricolo, Rob Smyth, Sarah Sunday, Noémi Titz, Ágnes Vinkovits.

LISTS: BBJ Research (research@bbj.hu) NEWS AND PRESS RELEASES:

Should be submitted in English to news@bbj.hu LAYOUT: Norbert Balázs PUBLISHER: Business Publishing Services Kft. CEO: Tamás Botka ADVERTISING: AMS Services Kft. CEO: Balázs Román SALES: sales@bbj.hu

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Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

THE BRAVE NEW WORLD OF FUTURE WORK

T

here was a fascinating insight given into the Future of Work by renowned labor industry expert Annemarie Muntz (see our story The Difference Between Tech and Touch in the Future of Work on pages four and five).

Muntz is the Director of Randstad Holding Public Affairs, but also president of the World Employment Confederation, and was in Budapest as a guest of the Business Council for Sustainable Development in Hungary at one of its breakfast briefings. And it was worth the early start.

The picture she painted, based on industry research, is a sobering one. Hungary is only likely to create 50,000 jobs between now and 2025. Thirty-five percent of what we now call core skills will have changed in the next three years. And between now and 2050, 35 million new high-skilled workers will be needed across Europe.

Demographics means those are jobs the Continent is never going to be able to fill internally (Hungary’s population alone is forecast to fall 1-2% between now and 2025), yet Muntz talks more of a skills mismatch than a skills shortage. She says Europe is going to have to learn to sell itself, because the answer lies through migration. But this is a type of migration the Fideszled Hungarian government need not fear. Those who possess the skills Hungary (and every other state in the EU) will need are typically interested in high wages, not the minimum wage or social security plans. They desire low taxation, not union representation. Oh, and they would prefer it if they could speak English.

Muntz followed a number of strands that come together under the Future of Work. Company branding, for example, will become ever more important for

THEN & NOW

BBJ-PARTNERS

businesses to attract and hang on to those increasingly highly prized talents. And she used a curiously old fashioned word – decency – to describe the basis for viable employer-employee relations.

Crucially, she urged businesses to get involved with universities and governments to make sure the graduates of the future are equipped with the soft skills they will need. There is some good news for Hungary here: by 2025, 42.1% of the country will have “high” qualifications, above the EU average of 38.2%.

Hungary’s universities are doing a good job in turning out graduates. But even that comes with a caveat: “I cannot tell you if they have the right skills,” Muntz warned. And that comes back to the need to talk to academia and lawmakers about what, exactly, is required.

Muntz spoke of a world that will see a “serviceorientated economy in Europe, all non-routine jobs”.

That means Hungary will almost certainly have to look again at the balance of its economy. Manufacturing jobs, which the government has fought so hard to attract, will become increasingly less important; almost all new jobs will be in the service and state sectors.

In order to future-proof themselves, our children will need to learn the so-called soft skills that computers cannot replicate well, at least for now. Routine jobs can be automated, but jobs that require creativity or complex problem solving, management skills, or coordinating with others, cannot. Welcome to the Brave New World of work.

MTI / Balázs Mohai

BBJ

Music has always played an important role in Hungary’s May Day celebrations. The color photo above shows internationally-renowned ethnic Hungarian composer and violinist Félix Lajkó performing in the ‘skanzen’ (open air museum) of Szentendre this May 1, when the skanzen also celebrated its 50th anniversary. In Hungary the day is known as majális; people generally attend outdoor festivities in public parks as it has long been a national holiday. In the black and white picture above left, pioneers – the commmunist-era scouting movement – play the trumpet on majális in 1955.

VISIT US ONLINE: WWW.BBJ.HU

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Another Early Bird Budget Presented

For the third year in a row, the cabinet has completed the draft bill of the budget for the upcoming year in the proceeding spring; if everything goes as planned, it will be passed by Parliament by midJune.

Minister for National Economy Mihály Varga (left) handing over the 2018 budget bill to Speaker László Kövér on May 2. MTI / Tamás Kovács

deficit of

ZSÓFIA CZIFRA

“This is a budget for families who make their living by working,” Minister for National Economy Mihály Varga said as he introduced the 2018 budget bill to Parliament on May 2. The targets of the budget remained unchanged from this year’s: achieving full employment, maintaining economic growth and boosting security, Varga said.

As for the key figures of the bill, many of them have been known for a while.

The government expects GDP growth of 4.3% in 2018, up from this year’s projected 4.1%.

The budget targets a drop in public debt to HUF 28.358 trillion at the end of 2018, calculating with a HUF/EUR exchange rate of 309.3. As a percentage of GDP, public debt is set to decline to 69.5% from a targeted 71.4% at the end of 2017.

The bill targets revenue of HUF 18.740 tln and expenditures of HUF 20.101 tln, leaving a

HUF 1.360 tln

or 2.4% of GDP. The planned deficit is higher than the HUF 1.166 tln gap targeted for 2017. The government is calculating with an average 3% inflation rate next year.

Besides families with children, the budget favors pensioners too: For the first time this year, Hungarian pensioners could get a yearend “premium” if GDP growth exceeds 3.5% and the deficit target is met, the economy minister explained.

Less From Corporate tax, More From VAT The budget also allocates HUF 81 billion more for education, HUF 102 bln more for healthcare, HUF 287 bln more for pensions and social services, HUF 83 bln more for the police and security services and HUF 205 bln more for economic development, Varga said. It earmarks HUF 226 bln for home purchase subsidies for families (the so-called

CSOK program). There is HUF 200 bln earmarked as a reserve.

When it comes to tax revenues, the cabinet is calculating that more money will come in from value added tax, excise tax and personal income tax, but a smaller amount from corporate tax. From the latter, the bill targets some 50% less in revenue in 2018 than this year (HUF 362.6 bln in 2018), and revenue from the bank tax will also be halved next year, coming to HUF 50.4 bln.

The smaller amount from the corporate tax is mainly due to the fact that the Funding for Growth scheme of the National Bank of Hungary has expired.

Revenue from the financial transactions tax is set to stagnate at HUF 204.7 bln.

Increased revenue is expected from VAT: according to the bill, the amount of VAT will be up 25% from the 2017 target, at HUF 3.090 tln. Revenue from excise tax is targeted at HUF 1.099 tln, 6% more than the respective target for this year. Personal income tax revenue is targeted at HUF 2.090 tln, almost 17% over the target for this year.

Revenue from retail duties and fees is seen climbing by 22% to HUF 188.6 bln.

More to Allocate The prime minister’s office and its related institutions will, altogether, get HUF 846 bln next year. The bill allocates HUF 220.1 bln for the Ministry of Foreign Affairs and Trade.

In healthcare spending, funding for general practitioners’ surgeries will rise

by HUF 12 bln to HUF 124 bln. The government will spend HUF 2.315 tln on the health insurance fund, up from HUF 2.059 tln in 2017. Spending on local governments will rise by more than HUF 54 bln from this year’s HUF 641 bln to HUF 695.5 bln.

There will be HUF 5 bln more for government communication and consultation next year, increasing its budget to HUF 20.5 bln.

Pension funding for women who choose to retire early will increase to nearly HUF 260

bln from HUF 233 bln in 2017. Spending on old-age pensions will rise from this year’s HUF 2.501 tln to HUF 2.669 tln next year.

Not surprisingly, the draft bill attracted a vast amount of criticism from opposition parties. The Hungarian Socialist Party (MSZP) called the bill “the budget of corruption and injustice”. Dialogue for Hungary (PM) told the government to stop its “flaunting and large-scale theft”, and stop favoring the rich. “World-record VAT rate and taxes on employment, flatrate personal income tax, low wages – everything remained the same in next year’s budget,” said Democratic Coalition (DK). According to Together – Party for a new Era (Együtt – a Korszakváltók), the bill is not a budget of security but one of theft, which ensures “bread and circuses”, instead of development. Hungary’s farright Jobbik party said next year’s budget will not provide a positive change in the Hungarian economy, and will not bring a better life to families.

Numbers to watch in the coming weeks First estimates of March industrial production will be published by the Central Statistical Office today (May 5), followed by the external trade figures, also first estimates, on May 9. April inflation data will be released on May 10, the performance of the construction sector in March will be published a day later. Second estimates and detailed data for the March performance of industry will come out on May 12. On the very same day, Fitch Ratings is scheduled to review Hungary’s sovereign debt rating. Further excitement is provided by the Q1 GDP data, set to be released on May 16.

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CELEBRATION OF THE 25TH ANNIVERSARY OF DWC, THE GERMAN BUSINESS CLUB IN HUNGARY AND THE 4TH GERMAN BUSINESS BALL on the 20th of May 2017, from 17:00 o’ clock in the Ball Room of the Pesti Vigadó Dresscode: Black tie Program: László Boldizsár, Tenor of the Hungarian State Opera, Ballet group of the city of Kecskemét, Acrobats of the La Vision Group, Cool Miners Band and Vicky Leandros.

Ticket prices: For Club Members and their Partner HUF 23.000; for Guests HUF 33.000. The price includes an exclusive, seated four-course-dinner and all drinks.

Organiser: German Business Club in Hungary Further information about the program, sponsoring and table reservations: +36-1-312-1123, mail@dwc.hu, www.dwc.hu, www.deutscherball.com and on the Facebook page of DWC Ungarn.

Main sponsors:

Yearly sponsors:

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Budapest Business Journal | May 5 – May 18, 2017

The Difference Between Tech and Touch in the Future of Work SECTOR

DEVELOPMENT

Europe, including Hungary, will face the potential of a dire skills shortage by 2050; 35% of core skills will have changed within three year, and Hungary itself will only create 50,000 new jobs between now and 2025, according to Annemarie Muntz, one of the most influential voices in the labor industry.

EMPLOYMENT TRENDS BY SECTOR, AVERAGE ANNUAL GROWTH RATE, 2003-25, HUNGARY (%)

2003-2008

-4 -2

2008-2013

2013-2025

-1 PRIMARY SECTOR AND UTILITIES

-3

-1,8 -1 MANUFACTURING

ROBIN MARSHALL

Muntz is president of the World Employment Confederation, and Director of Randstad Holding Public Affairs, and was speaking in Budapest on April 26 at a business breakfast organized by the Business Council for Sustainable Development in Hungary (BCSDH), whose 80 member companies contribute 30% of Hungary’s GDP.

Her presentation was entitled The Future of Work, and looked both at broader European and specific Hungarian issues.

A core part of the message was what employers will have to do to attract and retain workforce, how company brands will become increasingly important. And she used an old-fashioned word to describe what lies at its heart: Decency. “You cannot attract the right people unless you have decent company relations,” she said.

1

-3

-0,2 CONSTRUCTION

0,5

-0,2 -0,2 DISTRIBUTION AND TRANSPORT

ADVERTISEMENT

4

1 0,8 BUSINESS AND OTHER SERVICES

-1

$

0,5

2

NON MARKETED SERVICES SOURCE: RANDSTAD

It was the numbers, based on research by organizations like WEC and surveys by companies like Randstad, that were truly eye-catching, though. “Thirty-five percent of core skills will have changed between now and 2020. That’s just three years’ time,” she said.

The changes are being brought about by the introduction of so-called disruptive technologies. She gave financial services as a prime example, noting that insiders “say in two or three years the whole payment system will be different. That’s a lot of disruption. I can remember when we paid for things in cash; that seems a long time ago now,” she joked.

Soft Skills “In the European Union, 35 million new high-skilled workers are needed in the coming years as a result of expansion and aging.” Many of those jobs require so-called soft skills: Complex problem solving; critical thinking; creativity; people management; coordinating with others; emotional intelligence; judgment and decision making; service orientation; negotiation; and cognitive flexibility

BBJ_2509_news.indd 4

Muntz said universities are very good at turning out graduates with hard skills, but employers will either have to help tertiary education develop soft skills in the future workforce, or do it themselves after hiring. One other point; these are the most important skills for the next generation of workers to learn, because they are the hardest for computers and AI to replicate.

Routine work demands repetitive skills that are easily automated in a way that soft skills, at least right now, cannot be. “They make the difference between tech and touch.”

Filling those jobs will require different thinking, Muntz said. It is not so much that there is a global skills shortage, but a global skills mismatch, and demographics also plays a role. The workers are there, just not on our doorstep. “In Europe, we need to become more attractive; we need to get more people here because of the ageing population. We need high-skilled migration.”

She was very deliberate in her choice of language. “I am not talking about refugees; the refugee issue is a problem we need to solve, but that is completely different; we need to put in place a framework to attract high-skilled labor migration.”

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Budapest Business Journal | May 5 – May 18, 2017

Such migrants want a high wage, what Muntz called an “Anglo-Saxon environment” (they want to be able to speak English and not learn another language) and low tax rates. They are not much interested in social security, minimum wages or union representation. Thus, the business world needs to be engaged with lawmakers to ensure the right kind of attractive framework is put in place. “If government does not come to you, you need to do business advocacy.”

“I am not talking about refugees; the refugee issue is a problem we need to solve, but that is completely different; we need to put in place a framework to attract high-skilled labor migration.”

Demographic Problems Hungary suffers from the same demographic problems as almost all the rest of Europe.

“The working-age population is forecast to fall by about 1-2% between now and 2025,” Muntz said. The elderly (65+) population will also grow by about 20%. She did, however, note that the country still has a sizeable proportion of people in the 44-55 age range, meaning that, in the very short-term, the worst of the problems will not hit home here; but they are on the way. “In the coming 15 years, you will have still an enormous shortage of people.”

Looking at Hungary’s job creation chances, she raised question marks over the future. “The growth of employment is very modest,” she said. “Up to 2025, 50,000 new jobs are going to be created; that’s not that large an amount.”

Hungary has put a lot of store in creating manufacturing jobs, but for the future, Muntz says it is business services and public (government) services where by far most jobs will be created: agriculture, manufacturing and to a lesser extent

Annemarie Muntz, president of the World Employment Confederation, and director of Randstad Holding Public Affairs.

construction and transport are all going to see more automation, and therefore less job growth.

Her conclusions were equally applicable to the European and Hungarian pictures.

“The Future of Work will lead us into a service-oriented economy, creating jobs that currently do not exist, but that are non-routine based; it is impacted by demographic change that is driven by an ageing society, resulting in the need of 35 million high-skilled workers in Europe by 2050; needs active labor market policies to ensure that untapped potential can contribute to higher participation rates, leading to an inclusive and sustainable labor market; welcomes well-regulated migration to contribute to an competitive and agile economy; and provides opportunities for employer branding which will become increasingly important in the war for talent.”

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Business

Futureal Sells Skypark to OTP Investment Fund

The Futureal Group has sold the 25,000 sqm Skypark office building to the OTP Prime Property Investment Fund for more than HUF 40 billion. The complex is located at the Corvin Promenade mixed-use regeneration project and was designed to meet the needs of technology and R&D companies. The Budapest office sector is attracting the interest of both Hungarian and international investors and the deal is the first of a number of Budapest office transactions that are expected to be concluded this year.

GARY J. MORRELL

Skypark was completed at the end of last year. The BREEAM “Very Good” accredited development, designed

by Zoboki-Demeter & Associates, was pre-leased to Nokia and has provided the company with an IT and telecommunications R&D center. This

was regarded as one of the largest letting deals in the post-economic crisis period.

Skypark will be placed in the OTP Prime Property Investment Fund, which specializes in class “A” and “A+” real estate properties. The first acquisition of the new fund was the purchase of the 26,700 sqm Váci Greens B on the Váci Corridor. The fund is primarily

and CEO of OTP Real Estate Investment Fund Management. “We are of the view that this is the beginning of a strong real estate market cycle. This is why we decided that the timing was right to create a new property investment fund that focuses on investing into premium office developments such as Skypark.”

The office market is expected to be the dominant sector for both Hungarian and international investors, Skypark, sold for HUF 40 billion. with EUR 1.5 bln-1.8 bln in volume expected to be transacted this year. Office yields are estimated to be at recommended for institutional investors around 6%, although that threshold could and private-bank customers, according be broken this year. The presence of to OTP. Hungarian investors active in Budapest is regarded as providing more security Right Timing for the market.

“Both the real estate and the office market sector have been on the rise over See also Office Market Special Report, the past year,” said Zsolt Barna, president pages 8-36.

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An old companion for the long run

2017.04.10. 14:09:37

2017. 05. 03. 18:28

Gruppo T.F.M. KFT. 1068 Budapest, Király u. 102.

1st District

3rD District

4th District

9th District

12th District

14th District

44 sqm – 2 rooms, szabó Ilonka street

66 sqm – 3 rooms, PünkösdFürdő street

200 sqm – 4 rooms, mUnkácsy mIHály str.

69 sqm – 3 rooms, lIlIom street

80 sqm – 2 rooms + Hall, márvány street

72 sqm – 2 rooms, Ilka street

At the bottom of the Buda Castle, this apartment, that needs renovation, has nice view over the garden, private gas heating and balcony.

Close to the Danube, this sunny apartment has separate rooms and panoramic view over a green park. It is situated within a well maintained building with elevator.

In the garden suburb area of the district, this 2 storey family house built on 700 sqm of lot, has 2 bathrooms, terrace, 2 balconies, air conditioning system, well kept garden and garage.

In a new building with elevator, this street and garden facing, high floor apartment has separate rooms, spacious, fully fitted kitchen and 2 balconies. Close to the Ferenc Circuit.

This very spacious and bright, street facing apartment in good condition benefits of separate rooms and private gas heating. Good connection to public transport.

Close to the City Park, this spacious and bright apartment benefits of private gas heating, 15 sqm of terrace, winter garden and parking space in the courtyard of the period building.

34.900.000 HUF

18.900.000 HUF

89.000.000 HUF

140.000 eUr

34.900.000 HUF

34.990.000 HUF

+36.1.201.0403

2nD District

+36.1.379.0506

3rD District

+36.1.782.7275

5th District

+36.1.351.0446

10th District

+36.1.789.2846

12th District

+36.70.943.3097

14th District

84 sqm – 3 rooms, Fekete sas street

74 sqm – 3 rooms, rómaIFürdő

129 sqm – 3 rooms + Hall, károly cIrcUIt

92 sqm – 4 rooms, kőrösI csoma WalkWay

130 sqm – 4 rooms, stromFeld aUrél str.

98 sqm – 4 rooms, alsórákos

Close to the Danube, this completely renovated, sunny apartment benefits of living room with open kitchen, 2 separate bedrooms and it is situated within a building with elevator.

On the Danube bank, in a new built, luxury subdivision with swimming pool in the building, this sunny apartment has panoramic view over the Danube and terrace.

In a very nice period building with elevator, this spacious, high floor apartment has view over the Deák Square and benefits of private gas heating.

This completely renovated, very bright, duplex apartment benefits of two bathrooms and balcony. It is located in the centre of the district.

This very bright apartment, that needs renovation, has covered terrace, direct connection to the common garden and it is situated within a small condominium built on 800 sqm of lot.

This new built family house has 402 sqm of lot, separate rooms, 2 bathrooms, fireplace in the living room, 13 sqm of terrace and parking space. It is located in a quiet side street.

55.900.000 HUF

57.900.000 HUF

69.000.000 HUF

66.900.000 HUF

+36.1.201.0403

2nD District

+36.70.669.5350

3rD District

91.000.000 HUF

+36.1.287.6745

5th District

34.490.000 HUF

+36.1.780.8276

10th District

+36.1.789.2846

13th District

+36.70.943.3097

15th District

369 sqm – 7 rooms, FelHévízI street

87 sqm – 3 rooms, Föld street

131 sqm – 4 rooms + Hall, vörösmarty sqr.

320 sqm – 6 rooms, Felsőrákos

55 sqm – 3 rooms, jéggyár street

61 sqm – 3 rooms, rákosPalota

This 2 storey family house, that needs renovation, has 2 kitchens, 3 bathrooms, 2 balconies and 140 sqm of private garden. It is located in a quiet and green area.

In a new building, this very well divided, garden facing apartment benefits of living room with open kitchen, 2 separate bedrooms, balcony and private gas heating.

Nice panorama over the Vörösmarty Square and the Danube, this high floor apartment has separate rooms, wardrobe room, bright kitchen and it is situated within a Bauhaus style building.

This new built, two storey family house has 840 sqm of lot, living room with open kitchen, 2 bathrooms, terrace, 2 balconies and garage.

This bright, park facing apartment benefits of living room with open kitchen, 2 separate bedrooms and balcony. It is located in the garden suburb area of the district.

In a new building, this bright apartment has living room with open kitchen, 2 separate bedrooms, 17 sqm of terrace and private garden.

Handover in June 2017.

88.000.000 HUF

57.900.000 HUF

255.000.000 HUF

23.490.000 HUF

30.990.000 HUF

+36.1.336.1706

+36.1.430.1403

+36.1.287.6745

79.900.000 HUF

+36.1.780.8276

+36.70.455.8062

+36.70.398.8754

6th District

11th District

13th District

140 sqm – 4 rooms, nagybányaI street

137 sqm – 5 rooms, rómaIFürdő

63 sqm – 2 rooms, nagymező street

107 sqm – 5 rooms, jagelló street

55 sqm – 2 rooms, néPFürdő street

148 sqm – 5 rooms, kertváros

This sunny apartment has separate rooms, 2 bathrooms, terrace, parking space in the garage and direct connection to the well kept common garden of the beautiful building.

In a quiet subdivision, this two storey terraced house in good condition has 2 bathrooms, balcony, terrace and 50 sqm of private garden.

This fully renovated apartment is situated within a completely renovated period building, close to Andrássy Boulevard. Benefits of a private gas heating.

This completely renovated, very bright, garden facing apartment benefits of 2 balconies and it is located in a quiet area. Good connection to public transport.

This completely renovated, high floor apartment has view over the Danube, separate rooms and balcony. It is situated within a well maintained building with elevator.

This family house consists of 2 separate apartments, both flats have fully fitted kitchen and bathroom. Benefits of a well kept garden and garage. It is built on 698 sqm of lot.

39.900.000 HUF

45.000.000 HUF

24.900.000 HUF

36.500.000 HUF

2nD District

119.000.000 HUF

+36.1.376.6080

2nD District

3rD District

62.800.000 HUF

+36.70.669.5350

3rD District

+36.70.3156.087

7th District

+36.1.336.1706

11th District

+36.70.455.8062

13th District

15th District

+36.70.398.8754

Dunakeszi

152 sqm – 4 rooms, bUdakeszI street

445 sqm – sHoP, laktanya street

64 sqm – 3 rooms, István street

110 sqm – 4 rooms, IldIkó street

50 sqm – 2 rooms, PozsonyI street

56 sqm – 2 rooms, bank teleP

In a new built subdivision with reception service, wellness area and private playground, this sunny apartment has panoramic view and roof terrace. It is located in a quiet and green area.

In the centre of Óbuda, this 3 storey, completely renovated shop has private gas heating.

Currently it works as café. Very good connection to public transport.

Close to the City Park, this sunny apartment in good condition has separate rooms, private gas heating and balcony. It is situated within a well maintained period building.

This spacious, street facing, mansard apartment in good condition benefits of separate rooms, private gas heating and balcony. It is situated in a well maintained building, in a quiet area.

129.000.000 HUF

159.000.000 HUF

This very bright, high floor apartment, that needs renovation, has panoramic view over the Buda Hills, and it is situated within a nice period building with elevator.

This family house in good condition built on 588 sqm of lot, has very nice garden and garage in the courtyard. It is located in a quiet area.

26.500.000 HUF

51.500.000 HUF

34.900.000 HUF

28.900.000 HUF

+36.1.376.6080

3rD District

+36.1.430.1403

4th District

50 sqm – 2 rooms, ÚjmegyerI sqUare

202 sqm – 5 rooms, kassaI street

In a renovated building with elevator, this street facing, well divided apartment in good condition has air conditioning system and it is located in a quiet area.

In the centre of the district, in a building with elevator, these two, very spacious, street facing apartments side by side can be used as an office or consulting room as well.

17.990.000 HUF

74.000.000 HUF

+36.1.379.0506

+36.1.782.7275

+36.1.351.0446

7th District

+36.1.720.2433

11th District

+36.70.414.7759

13th District

+36.70.399.0399

Dunakeszi

70 sqm – 2 rooms, rUmbacH sebestyén str.

117 sqm – 4 rooms, nándorFejérvár lane

132 sqm – 4 rooms, ÚjPestI qUay

90 sqm – 4 rooms, révdűlő

This renovated, sunny apartment benefits of a nice terrace and a fully fitted kitchen. Perfectly positioned between Deák Square and the chic “Gozsdu Courtyard”.

In a very quiet street, this very spacious, duplex apartment has private gas heating, 2 bathrooms, balcony and garage. It is situated within a building with nice common garden.

Panorama over the Danube, this completely renovated, high floor apartment has separate rooms, private gas heating and it is situated within a renovated period building with elevator.

This family house in good condition built on 580 sqm of lot, benefits of a terrace, two car garage and a very well kept, beautiful garden.

52.900.000 Ft

119.000.000 HUF

47.500.000 HUF

+36.70.3156.087

+36.1.720.2433

+36.70.414.7759

55.900.000 HUF

+36.70.399.0399

each agency independently owned and operated. • these offers are valid, till the apartments are sold. • these information do not constitute a contractual element.

BBJ_2509_bus.indd 7

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Budapest Business Journal | May 5 – May 18, 2017

Special Report Office Market PM

division

thousand sqm buildings

OVER tenants

100

office fit outs managed by ESTON

Hungary

Designed for Happiness: Aiming for WELL Certification10 Office Market Talk18-20 The Creative Coworking Equation22 Real Estate Office Renaissance Bringing new Challenges and Opportunities to FM35

BBJ_2509_special_report_.indd 8

2017. 05. 09. 14:34

www.bbj.hu

3

Budapest Business Journal | May 5 – May 18, 2017

Special Report | 9

Desperately Seeking Plots as Office Market Booms

The basic requirements for any office project are a suitably-sized development plot with unimpeded access to utilities, a clean title, direct public transport and road access for the labor force, and more increasingly, access to a bike lane.

In Budapest, a very compact city, suitable sites tend to be brownfield rather than greenfield. With a limited supply of plots in the historic center of Budapest, most office development is now being undertaken in out-of-center or suburban locations.

GARY J. MORRELL

Depending on the standard of the plot, the purchase price is said to constitute around 10-20% of the total development cost according to Adrian Limp, head of valuation and advisory at Cushman & Wakefield Hungary. This can rise to more than 20% in the central business district (CBD), where the availability of land is very low. Redevelopment of existing buildings can run to 30-60% of the total investment, depending on the specifications of the asset. Land prices in the Váci Corridor are estimated at EUR 150-300 per sqm of buildable area.

The Budapest office market has matured with the need for successful building owners to meet sustainability specifications that require less carbon emissions and shorter journey times for staff with a public transport and a bike lane option, which is now a basic requirement from tenants.

But this wasn’t always the case. In contrast to the current fashion to locate office centers at transport intersections, there was previously a trend for projects to be undertaken in out-of-city locations with limited or absolutely no direct public

BBJ_2509_special_report_.indd 9

Property Market, which purchased the disused site, describe the project as a “new city quarter” office with residential, retail and leisure components, and also with the possibility of a hotel. The phased development has the potential to deliver

The Magyar Telekom HQ..

“Our business development and land acquisition team finds it more and more difficult to source quality plots in Budapest that fit our premium commercial and residential portfolio.” transport links. The Tópark development has been a monument to the lack of attractiveness of such out-of-city locations that have a very limited provision of offsite amenities. The periphery now has the highest vacancy rates, while the inner city and suburban sub-markets have the lowest.

South Buda currently enjoys the lowest vacancy at below 4% while on the outskirts the average vacancy rate is

above

30%.

“Where the office market is performing well is in the location of office centers on major transport routes,” commented Pál Baross, an experienced sustainability professional.

Focus of Development The Váci Corridor has arguably established itself as the business center of Budapest.

Indeed, the area could be regarded as a template for former industrial areas to be redeveloped and attract inward investment. Analysts agree that the drivers of the development of Váci út are good public transport, large development plots, cheap land prices and the “open door” policy of the District XIII authority, including the engagement of successive chief architects with developers.

Importantly, the local authority says it is striving to create a living environment in addition to a business area.

“Development in District XIII is dynamic and in the next three-to-four years, hundreds of thousands of square meters of offices, service units and thousands of flats are expected to be built.

As far as city development is concerned, we offer developers partnership and cooperation,” said Mayor District XIII József Tóth.

In a recent development, HB Reavis has commenced construction of the Agora

project, which will consist of office buildings distributed around three public squares.

The development will also deliver retail and leisure space. The site was purchased from the District XIII municipality as well as a bank, and is a long-term development project scheduled for

completion in

2023.

“Such large developments require a lot of trust in the market. Most projects are around 20,000 sqm of space,” said Limp.

Also in Váci út, another similar sized office development project is Váci Greens

by Atenor. The company secured the development plot when there was very little office development in the city. “This is a phased project that will deliver 135,000 sqm of office space located in a green environment. We commenced the project due to a need for office space in Budapest, the supply of large development plots in Váci út with excellent public transportation links and the support of the local authority,” said Zoltán Borbély, managing director of Atenor Hungary.

Back in Buda The other area currently very popular with developers is southern Buda. Property Market Real Estate Development, a subsidiary of the constructor Market Group, has commenced development of the mixeduse BudaPart project, located in a park environment at the Kopaszi Gát (dam) on the bank of the Danube.

more than

200,000 sqm

of phased office and residential space over a ten-year period.

Also in Buda, Futureal plans the development of the 45,000 sqm Budapest One business park adjacent to the terminus of the Metro 4 line, on the western edge of Budapest.

In District IX, Wing is developing the 57,000 sqm Magyar Telekom headquarters.

Again the complex is located at a metro and road network hub in the direction of the Ferenc Liszt International Airport. Üllői út, the main road to the airport, is regarded as having potential as a future development area, although, the area lacks amenities.

Sándor Finta, one of the authors of The Budapest 2030 Long Term Urban Development Concept, advocates projects where the original value of a building can be appreciated while providing added value. Horizon Development has a track record of developing high-end office space in historic buildings in central Budapest.

This is also a trend in the center of other major cities, such as Prague and Berlin.

“Our business development and land acquisition team finds it more and more difficult to source quality plots in Budapest that fit our premium commercial and residential portfolio,” commented Attila Kovács, managing partner at Horizon Development. “We constantly seek new opportunities in the CBD, as well as in various submarkets of our capital. With our proven track record of premium CBD developments – Eiffel Square, Eiffel Palace, Váci 1 –, we are almost obliged to continue our development activity in downtown Budapest.”

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BUILDING YEAR 2001 FREE SPACE 3,400 sqm PUBLIC TRANSPORT Tram 17, Bus 9, 86, 160, 260 CONTACT ingatlan@diofaalapkezelo.hu

The grade „A” Óbuda Gate office building located on Danube bank in a key Central Buda location is offering 14,000 sqm office area with high technical standards. The office building was recently fully renovated brand new reception and lobby area with business lounge, as well as a renewed restaurant and cafeteria were developed. The owner is also redesigning the common areas on the office floors and some amendments are made for the bicycle users to fit todays office needs in a landmark office building. Due to a successful leasing period only 25% of the office space is available.

The building can be easily accessed from Buda and Pest Side by public transportation and by car. Óbuda Gate and its vicinity are well-provided with amenities such as restaurants, banks and shopping facilities.

2017. 05. 09. 14:34

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Special Report

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Budapest Business Journal | May 5 – May 18, 2017

Designed for Happiness: Hungary’s new Offices Aiming for WELL Certification

In times when keeping productivity high and talented workers happy are seen as being of increasing importance, offering a green office is no longer enough: Providing solutions that make office life healthier and more comfortable is the latest trend. ÁGNES VINKOVITS

Consistent quality work can be expected only from satisfied workers in the long run. Under pressure to keep their staff happy, companies need to offer not only

reasonable salaries, but also provide a good working environment.

Office buildings that are eco-friendly and have some green resting areas are nothing special anymore, but have rather become a minimum expectation.

Today, a new more complex approach seems to dominate office developments.

The WELL Building Standard, founded by innovative construction company Delos in collaboration with scientists and physicians from Columbia University, measures how buildings affect the health and well-being of the people working inside them by focusing on seven key areas: air, water, nourishment, light, fitness, comfort, and mind. Access to organic foods and natural light as well as high-tech solutions to minimize the time spent waiting for the elevator are all taken into account.

Introduced on the American market in 2014, WELL certification arrived in Europe at London’s One Carter Lane in 2016, and there are still only a handful of completed projects worldwide. Despite that, this region seems to be keeping pace with this latest international trend.

First to the Well Spark, a Warsaw project of property developer Skanska will be the first to gain WELL accreditation in CEE. “We were the first developers on the Hungarian-

Polish market who decided to gain LEED certification [green building accreditation] for all of our buildings, in order to convince tenants, investors and the entire construction sector that green buildings are of good investments,” Katarzyna Zawodna, the president of Skanska Commercial Development Europe says. “We hope that things will go the same way this time,” she adds. The company promises to seek WELL certification for all of its future developments in the region, including Hungary.

HB Reavis, meanwhile, also aims to gain WELL certification for two new developments in Bratislava and one in Prague. And its next Hungarian project, AGORA Budapest, due to be finished by 2018, is designed to gain WELL “Platinum” certification, the highest level of after “silver” and “gold”. “We can already detect such needs from the tenants, but we also would like to take up

an educating role and set an example by contributing to a more sustainable world,” rental manager Mariann Tóth told the Budapest Business Journal.

Agora Budapest will offer 4,500 sqm of office space on Váci út and, along with accompanying green and community areas, will also introduce some people-centered novelties such as an intelligent access control system which is integrated with the elevator operation, a micro locationbased information service and adaptive car parking control system.

Though the certification systems lay down minimum expectations, the developers still have some elbow room to find the solutions their clients most need. “When deciding on the innovative solutions, the needs of the tenants as well as of the people living nearby played a heavy role,” Tóth says, adding that the developer conducted opinion polls to assess what future clients might want.

Futureal, the developer of the Corvin Project, is another looking at the new certification. “The work environment is one of the most influential circumstances on people’s productivity and satisfaction,” general manager Tibor Tatár says. The company’s new, HUF 11 billion Advance Tower project, also on Váci út, will aim for WELL certification, too, in order to “create a space that is not only comfortable but also healthy”.

EXPERT OPINION

How Your Office Helps you to Tackle the Recruitment Challenge our buildings more comfortable, healthier and better equipped to serve our customers now and also in the future. This is our ‘Workplaces by Skanska’ concept that puts innovation, health, safety and sustainability into our focus when we build the offices of the future,” Łapiński said.

According to research conducted in 2016 by CBRE, Millennials will make up half of the global workforce by 2020. As the research shows, the quality of their future workplace will be one of the most important demands they make from their employers.

According to the research, a large percentage of the global Millennial workforce can be motivated by a an attractive office environment, a private office, collaborative workplace opportunities and wellness facilities. In fulfilling these needs, recruitment might become easier and the retention rate of talents could be increased.

What do Millennials want when it comes to office environments?

As the global study shows, they are more similar to Generation X than one might think.

Some 56% of Millennials think that work and private life should be separate – they don’t like the fact that thanks to technological advancements, work continues to intrude their private life –, 42% of them want a private office, while33% of them prefer collaborative workplace environments. Also, 36% of Millennials want some wellness facilities at their workplace. All-in-all, 78% of them see workplace quality as important when choosing an employer, and 69% will even trade other benefits for a better office environment.

What this means is that if you want to ensure continuous workforce supply for your company, you need a futureproof workplace with innovative features and an

employee-focused approach. This is also the perspective that Skanska shares, and every building it develops is human centric, keeping in mind always the technologies and innovations.

“When we shape our office projects, we always look closely at four areas: work environment; placemaking; tenant profitability; and green features, and address innovative solutions to each. Our

aim is to create inspiring, flexible and comfortable working environments where both the business and the people can thrive,” said Marcin Łapiński, managing director of Skanska Property Hungary & Romania. “We create destinations that provide a dynamic mix between business and private life, being committed to the success of our tenants and their ability to boost productivity through their workplaces. And last, but not least, we harness technologies that make

Living proof of this concept is the company’s newest project, Mill Park, which is expected to be handed over in Q3 2018. The complex will feature a green cozy courtyard with social working areas, dedicated places for places for gatherings with urban furniture and an outdoor gym. The project’s two buildings will be equipped with various sustainable and innovative solutions to minimize the environmental footprint.

For instance, the interior lighting system will use around 30-40% less energy than conventional ones, and the developed application of the building will allow employees to check out the menu of the restaurant in the complex, get information about events and amenities in the area, rent a bike and always have updated information about the building. Everything is developed to create a to create a real experience for the people working in Skanska’s office projects.

Thinking some years back, you might realize how much the job market has changed and how dynamic are the needs and requirements of the employees.

Nowadays, the quality of the workplace and the healthy environment created by office building developers has become a very important Human Resources tool.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

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Budapest Business Journal | May 5 – May 18, 2017

Special Report | 11

EXPERT OPINION

Colliers Celebrating 25 Years of “Same Spirit, New Ideas” There were many in all sectors, numerous in the office market, lots of bigger land transactions in the industrial and logistic sectors, and big valuation mandates on a regional level. From the recent past, we are particularly proud of having advised ITS to their 20,000 sqm move to Skanska’s Mill Park, and the sale of the iconic Park Atrium building (my former workplace) and Nordic Light.

Colliers International Hungary is marking 25 years of business.

We asked managing director Tim Hulzebos how it, and the market has changed.

How has the Hungarian market changed in the 25 Colliers International has been on the scene?

The first office buildings in the early 1990s were mostly built by foreign developers with strong ties with construction companies, so we were left with not too good buildings in rather central locations.

The market stood at around 40,000 sqm per year and somebody had the crazy idea to develop Váci út 35, which was perceived as a hopeless location; look at where the Váci Corridor is now!

Most importantly, until 2000, developers could not sell their projects as there were no investors. It was only at around that time that the first buyers, mostly from Germany and Austria, started to become active outside their own countries and created special CEE funds.

Shopping was done in Váci utca and Budagyöngye, and key logistics were done out of Depot. I remember my first deals, the acquisition of a piece of land for McDonald’s in Gyál to build a distribution facility with cooling, and the sale of land in Győr along the M1 to Metro C&C. Obviously, all sectors have strongly developed over the years, although always in a way that could be overseen; Budapest never really “boomed” in my opinion. There have been times of a temporary imbalance between demand and supply, especially in the office markets during the financial crisis and the residential market in the period around 2010.

And how has Colliers changed in that time?

Colliers started off originally as a franchise operation with a strong focus on brokerage, given its American/ Canadian background. Over time, we learned to listen well to our clients and their problems. You do that by asking relevant questions and, based on the outcome of the discussions, we propose property solutions; we are not trying to sell buildings or space anymore.

BBJ_2509_special_report_.indd 11

TIM HULZEBOS MINI BIO

Why should someone choose Colliers?

“We are fun to work with and to work for” is one of our key slogans. At Colliers, we decide on things locally and you can have a strong input in the result of your work; creativity is rewarded and if you do well, you get very well paid: Enough reasons to join us, I would say!

With more than 20 years’ real estate experience, Tim Hulzebos is currently managing the office of Colliers International in Budapest.

Living here since 1995 he actively takes part in CEE property markets.

He has held Colliers Hungary’s managing director position from August 2010.

Hulzebos is a Dutch citizen and obtained his economist diploma at the Erasmus University of Rotterdam in 1993. He worked two years for an international trading company in the leisure and bicycle business in Prague. Between 1995 and 2000 he worked for DTZ Hungary as senior agent, and later as head of agency.

From 2000 until 2006 he was working for DTZ in a regional role involved in business development, cross border investments and corporate real estate services, and was part of the regional management team. In May 2006, he became development director at ING RED, where until 2009 he was involved in Projects like the Allee Shopping Center and Vörösmarty tér 1.

In August 2010, he was appointed managing director of Colliers International Hungary, where he is responsible for the day-to-day running of the business, with a focus on the capital markets and business development. As a fluent German speaker, Tim has an extensive network in the German and Austrian property communities.

How many people are employed in Hungary now, and what services do you offer?

We employ more than 50 people including facility management, and offer a full line of services in the industry

from agency in all markets, valuation and consultancy, investment services and property management in the widest sense of the word. It makes me proud that we are very successful in certifying buildings (LEED, BREEAM) with clients like Citibank, Ikea and National Instruments and numerous office developers in Budapest.

How much of your business is Budapest-based and how much is conducted in the rest of the country?

What is the next biggest market after the capital, and how is this changing?

The vast majority, let’s say 90%, of the business is in Budapest, as it is the administrative, financial and logistical capital of the country, with about 50% of GDP created there. Only in the industrial field is it different; there are weeks when I hardly see our team in the office, as they are on the road to and from the countryside. Debrecen, with its university and skilled workforce, is making a strong effort to put itself on the map as an alternative BPO/SSC location, and we are starting the marketing of a 25 000 sqm Class “A” building soon. Győr and surroundings, with the impressive Audi factory, claims top spot in the industrial market.

What is the biggest deal Colliers has worked on its 25-year history in Hungary?

How do you see the Hungarian market developing? What will it look like when you are celebrating 50 years in business in Hungary?

Good question; obviously, there are certain international trends ongoing based on the implementation and more intensive usage of new IT solutions and technical development, and simultaneously the local market is further maturing and developing. So, either we will all work and shop from home, or we will drive with our electric cars to modern office towers, a number of which are now under planning, or most likely a combination of the two.

www.colliers.hu

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

The company has obviously seen a lot since 1992. Was the financial crisis from 2008 onwards the most difficult challenge? How did the company survive that period?

Crises in the service industry can be caused in many ways, for example the loss of key staff or an entire team, the loss of a major client or a (sub)market breakdown. The financial crisis of 2008 was definitely a great challenge to us – and the entire industry – although its real effects only hit us in 2011-2013. We survived and in fact did not write any red figures, partly as our more flexible remuneration system allowed us to keep our staffing costs under control.

2017. 05. 09. 14:34

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Special Report

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Budapest Business Journal | May 5 – May 18, 2017

Office Development Boom in Budapest

Positive office market fundamentals in terms of demand and the lowest vacancy on record are creating a development boom, with both established regional developers and Hungarian companies now going ahead with projects in Budapest. With growing demand, most of the office assets under construction are expected to have concluded sizeable prelets before completion.

MAJOR

BUDAPEST OFFICE PIPELINE PROJECTS

2017

SIZE

Debt finance is available on more favorable terms and growing interest from investors provides developers with an exit strategy with multiple bids for office projects. Well located, contiguous quality office space in Budapest is difficult to source and vacancy is therefore expected to remain low. Whether this increasing demand and the lowest vacancy in the CEE region upwardly impacts rentals remains to be seen.

There are currently around five major Budapest office projects due to complete this year and

at least

50%

of this space is already pre-let. This should easily meet the predicted annual absorption figure of around 150,000 sqm. JLL estimates

18,500 sqm 14,000 sqm

DEVELOPER

OFFICE GARDEN III

ERICSSON HEADQUARTERS

SKY CITY

VÁCI GREENS D

WHITE HOUSE

GRT Q3

WING Q4

WING Q4

ANTENER Q4

GTC Q4

that around 90,000 sqm of space will be delivered this year, with a significant pipeline growth of up to 240,000 sqm for 2018-2019, based on projects under construction or at the planning phase.

“Based on the construction pipeline, new supply will remain below 100,000 sqm in 2017. In 2018, we expect a surge in development to 343,000 sqm and 220,000 sqm for 2019; however, as much of this is expected to be committed, instant availability is likely to be limited by the time of handover,” said CBRE. In the increasingly popular south Buda area, the Hungarian GRT Group is set to complete the 18,500 sqm third-phase of Office Gardens in District XI in the third-quarter of the year.

A further 18,000 sqm phase is planned for 2018. Once fully completed, the office park is scheduled to have delivered a total of 85,000 sqm of office space across five buildings.

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Usually we spend more time in the offic e than at home, thus we need an attractive and comfortable office environment. The newly reconstructed “A+” category CityZen Office Building offers 12,600 square meters of professionally designed office environment where the scent of fresh coffee from Café Frei welcomes you, the premium quality will fulfill your highest expectations in an environment that inspires you every day to create something new.

BBJ_2509_special_report_.indd 12

22,000 sqm

22,000 sqm

DUE

GARY J. MORRELL

24,000 sqm

There is now an increasing trend for speculative office development in Budapest, due to rising demand, falling vacancy, the increasing availability of debt finance and the perceived low supply of contiguous quality office space. Financing is a lot more achievable and on more favorable terms, although banks still require a certain degree of pre-leasing before committing. Currently, the equity requirement from local and international banks for a large Budapest office project is 25-30%, and up to 50% for a smaller development. Pre-lease requirements from lenders are said to be

around

30-40%.

Already Established The tendency is for already established developers to undertake projects. The CEE developer/investor GTC is developing the speculative 22,000 sqm White House on Váci út, due to be completed by the end of the year. The project has been awarded LEED “Gold” pre-certification and incorporates a 100-year-old former factory that will create 2,000 sqm of office space.

Another pan-European developer, Antenor, undertook the phased Váci Greens project at a difficult time for the Budapest office market. Antenor is scheduled to deliver the 15,500 sqm Building D (fourthphase) of the project in Váci út in the fourth-quarter of the year/first-quarter of 2018. Buildings E and F are due to commence in 2018-2019, and will deliver a further 50,000 sqm of speculative space.

Upon final completion, Váci Greens will consist of six buildings with around 130,000 sqm of office space.

“Based on the construction pipeline, new supply will remain below 100,000 sqm in 2017. In 2018, we expect a surge in development to 343,000 sqm and 220,000 sqm for 2019; however, as much of this is expected to be committed, instant availability is likely to be limited by the time of handover.”

“We will start the design process, apply for building permits and break ground on the next 25,000 sqm phase of the project,” said Zoltán Borbély, managing director of Antenor Hungary. “Our confidence in this speculative development reflects the huge demand for office space in Váci út,” he added.

Also in the Váci Corridor, CPI Hungary (part of the Czech-owned CPI Property Group) is developing the 15,600 sqm Balance Office Park. The refurbishment program will be carried out in two phases, the first phase consists of 9,400 sqm of space and a second phase consists of 6,200 sqm of “industrial and modern style space loft space”. CPI has applied for BREEAM “Very Good” certification.

Wing has gone down the built-to-suit route with construction of the Ericsson research and design headquarters at the Nobel Prize Winners Research & Development Park, located on the Buda side of the Rákóczi Bridge. The 24,000 sqm LEED

2017. 05. 09. 14:34

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Budapest Business Journal | May 5 – May 18, 2017

Special Report | 13 been jointly designed by the London-based Make Architects and the Hungarian Finta Studio. The long-term, phased development project is scheduled for eventual

completion in

2023.

“All four [CEE] markets witnessed a surge in demand last year, which has further encouraged the construction of new offices for delivery in 2017 and 2018.

Across all office markets, delivery of new large-scale developments of 20,000 sqm plus is expected.”

“Gold” accredited complex has been designed

by Wing’s in-house architects, Aspectus Architect Zrt. The project is planned to topout in summer and should be delivered at the end of 2017 or the beginning of 2018, with a further second phase of around 20,000 sqm also planned.

In another built-to-suit project, Wing has commenced construction of the 57,000 sqm Magyar Telekom Group headquarters, located in District IX. This is the largest single block office center under construction in Budapest, according to the developer. The BREEAM “Very Good” accredited building was designed

by TIBA Architects Studio. There is also an adjacent land plot that provides the possibility for development of a second phase. The project is due to top-out by the end of the year and be completed in the second half of 2018.

Wing has also undertaken the speculative Skylight redevelopment project in central Pest that will deliver more than 20,000 sqm of space by the end of the year.

Significant but Manageable A further 12 or so Budapest office developments are planned for delivery in 2018-2019. Although significantly above the depressed levels of the past five years, the pipeline is still regarded as being at a manageable level; although 2018 will see nearly twice as much space delivered as

BBJ_2509_special_report_.indd 13

in 2017, a significant proportion of that is already committed.

Budapest is now the second largest office market in Central Europe at 3.36 million sqm; the list is topped by Warsaw, with 5 million sqm of modern office space as of the turn of the year according to JLL. Prague recorded 3.21 million sqm of space. “All four [CEE] markets witnessed a surge in demand last year, which has further encouraged the construction of new offices for delivery in 2017 and 2018. Across all office markets, delivery of new large-scale developments of 20,000 sqm plus is expected,” commented JLL. Gross take-up for Budapest in 2016 was 467,000 sqm, compared to 750,000 sqm for Warsaw.

Budapest has the lowest vacancy in the region at 9.5%, compared to 14% in Warsaw.

Prime rents for the very best Central Business District (CBD) product in Budapest is put at

EUR 22

per sqm, per month

compared to EUR 20.5-23.5/sqm/month for Warsaw according to JLL. CBRE also estimate prime CBD rents at EUR 22/sqm/month, EUR 16 for central Buda compared to EUR 15.25 for the Váci Corridor.

With regard to further pipeline, the twinphased Corvin 5 at Corvin Promenade is scheduled to deliver 30,000 sqm of space in 2018. In another project, Futureal plans to develop the Budapest One business park adjacent to the terminus of the Metro 4 line. The first phase is planned to consist of around 25,000 sqm of office space, but a substantial pre-lease needs to be concluded for construction to commence according to the developer. In Váci út, the company is developing the speculative Advance Tower, which is scheduled to deliver 11,000 sqm of BREEAM accredited space, designed by Mérték Architectural Studio Ltd. All pipeline projects are attracting the attention of investors, as office is by far the most popular asset class. Leading office developers that have developed and fully leased office projects and subsequently sold

them to investors, are continuing to develop further projects. Horizon Development is constructing the speculative 25,000 sqm Promenade Gardens on Váci út in partnership with the investor, Erste Open-ended Real Estate Fund. The project has been awarded both LEED “Gold” and BREEAM “Very Good” accreditation for the speculative project. The company is also developing the Szervita Square complex in the central District V. The LEED “Platinum” accredited project is due to be completed in 2019. This is a premium downtown building with a mix of office, residential and retail space.

Very Optimistic “We have very optimistic pre-let expectations for both of our premium projects under development. Upon completion, we predict that both Promenade Gardens and Szervita Square will be around 80% let,” said Attila Kovács, managing partner at Horizon Development.

In another major phased development in the Váci corridor, HB Reavis has obtained planning consent for its latest Budapest office project, the 138,000 sqm Agora Budapest, and construction has already started on the first phase. Agora will consist of five office buildings distributed around three public squares. The development has

“The main goal for us when designing Agora was to deliver a scheme that fits into the texture of the city, but at the same time brings modern new architectural value. An equally important aim was to deliver a new work and leisure destination,” said Zoltán Radnóty, CEO of HB Reavis in Hungary.

The first speculative phase of the development, Agora Hub will deliver 34,500 sqm of office space, and scheduled to be completed by the end of 2018. HB Reavis hopes to gain planning permission for a second phase, Agora Tower this summer.

The leading international and CEE developer Skanska is developing the first 18,00 sqm phase of the twin-phased 38,000 sqm Mill Park in central Pest, which is already almost fully pre-let. The project is due to complete in the third-quarter of 2018.

The company is also planning a third phase of Nordic Light, also in the ever popular Váci út business corridor. “We cover all the major business markets in CEE. In Hungary, the market is back on track with very strong demand over the last two years and we now see strong demand from investors,” said Katarzyna Zawodna, business unit president at Skanska Commercial Development Europe. “We are currently looking to secure more developments sites in Budapest,” she added.

Another Hungarian developer, Property Market Real Estate Development (a subsidiary of the constructor Market Group) is preparing the ground for the development of the phased BudaPart office and residential development in south Buda, located in a park environment at the Kopaszi Gát (Dam) on the banks of the Danube. The first office phase is planned to deliver 18,000 sqm of speculative space in the second quarter of 2018.

There will be a flurry of new builds released in 2018/19 as many developers have committed to new constructions around the city. A number of these new schemes have or will secure decent prelets. “The lowest vacancy rate in the CEE region definitely support rental evolution,” concluded Rita Tuza, head of research at JLL Hungary.

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14 | 3 EXPERT OPINION

Eskimos Chasing Seals Until new Supply Arrives Katalin Sermer Country Manager S IMMO APM HUNGARY KFT

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Katalin Sermer, country manager at S IMMO APM Hungary Kft., talks about the challenges facing the office market in Budapest, the year ahead, the dominance of Budapest and the ration of seals to Eskimos.

How do you view the office market in Budapest right now? How do you see things going for the rest of this year and into next?

Right now, we observe an increasing demand, rents rising slowly but steadily, declining incentives and increasingly long lease terms. These developments are mainly the result of limited supply leading to fewer alternatives regarding special features in location or size.

The second half of the year will bring the first deliveries of new supply and any project that is not yet prelet will offer a choice to those who will be on the move then. This trend will speed up in 2018, resulting in the relocation of more companies. However, competition should be determined by the differences in quality and rents, and should not press rents down, as happened in 2008-2009. In a mature property market, tenants should be offered the location that suits their needs and budgets best. At S IMMO we have invested largely in order to enhance the quality of the buildings

City Center.

BBJ_2509_special_report_.indd 14

in our portfolio and to remain competitive.

What are the greatest challenges to doing business in the market?

Tenants get more and more demanding when it comes to office spaces. They have a very precise idea of what their working environment should provide.

It’s not only about the building quality but, of course, also about the reasonability of the costs, or the availability of a contact person. Due to our close observation of the market, we are always aware of the current requirements and wishes and focus our activities on that. It’s important to adjust to the trends quickly and know exactly what the tenants’ wishes are. At the moment, we register high occupancy rates. That also means that our buildings can only offer a limited choice of space, which can be disappointing for some (potential) tenants.

How much of the market is dominated by Budapest? Is there much appetite for new office space in the provincial cities?

S IMMO is only present in capital cities in the CEE region, therefore we have limited knowledge on this topic.

The current dominance of Budapest is unquestionable. Though several companies have turned to provincial cities in the hope of finding cheaper accommodation, those locations are often short of qualified persons, which may make it difficult to establish your business there.

The market is generally seen as being pro-landlord. When do you think that might turn around?

This is a perfect example of “too many Eskimos and too few seals”. The market tends to be pro-landlord when supply is scarce and turns pro-tenant as soon as there is oversupply. This happened recently when hardly any new supply arrived on the market. If all the projects in the pipeline are completed, the performance pressure on landlords will rise.

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Budapest Business Journal | May 5 – May 18, 2017

Interior Design Part of the Process From the Drawing Board Onward Analysts say office interior design should be incorporated into the overall process of designing an office building and this should be taken into account by the architectural team. From the tenant’s perspective, a healthy and efficient work environment is seen as more productive when added amenities create a place where staff are happy to spend time.

GARY J. MORRELL

“For the workplace, the critical issue is ‘building health’; this includes natural light, fine grade control over temperature, humidity and noise control, visual contact with the ‘world out there’ and usable outdoor space,” says Pál Baross, an experienced developer and a qualified green accreditation assessor. “As many certified buildings in Budapest and all over the world testify, designing buildings with these parameters is well within our reach.

In my view, both developers and investors have become much more focused on ‘tenant satisfaction’ than in the past.”

Michael Smithing, director of green building advisory services at Colliers International, sees tenants as the drivers of the market and for them the central issue is productivity, which suggests developers should be concerned with the indoor environment and “wellness”, as this is area that will continue to expand.

He expects more energy efficient lighting with offices switching to LEDs. A further development could be the provision of daylight and occupancy censors hooked into the lighting system in order to save energy.

There could also be changes in ventilation, cooling and heating systems that align more closely with the demands of a person at an individual workstation. This creates a more individual environment.

In its latest office project, the design for GTC’s White House incorporates

the

100-year-old

former Schlick elevator factory that is being converted into an office space.

“Our efforts have been acknowledged

by achieving the LEED “Gold” precertification. While planning our developments, we focus on environmental awareness and aim for a sustainable working environment,” says Bori Gedai, commercial director of GTC Hungary.

Future-proofing

Skanska has introduced the WELL Building Standard throughout its CEE development portfolio. (See separate story on WELL Certification on page 10.) “For us, this is a major business decision and another step towards future proof workplaces that focus on the employees’ needs and comfort,” explains Katarzyna Zawodna, president at Skanska Commercial Development Europe. “In 2009, we were the first developer in the CEE region to decide to develop all buildings in compliance with the LEED certification system and convince tenants and investors, as well as the whole construction market, that green buildings were a good thing. We are sure that it will not be any different this time. Now that LEED has become a commonplace standard, we are making yet another step and committing to one more sustainable trend. WELL is an innovative tool on the Central and Eastern Europe market that will allow us to put an even greater focus on creating friendly and healthy workplaces,” Zawodna adds.

Futureal has also applied for WELL certification for its Advance Tower office complex, designed by Mérték Architectural Studio Ltd. The company plans to develop all further office developments in line with the WELL accreditation system. “Futureal has been committed to sustainability and thus when developing our office buildings, factors that improve employees’ health and wellbeing are of great importance, besides the environmental considerations and energy requirements,” comments Tibor Tatár,

Rendering of the White House Atrium.

2017. 05. 09. 14:34

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Special Report | 15

EXPERT OPINION

Beginning of the end for ‘Dual Agency’ in Real Estate Transactions?

Partner VLK CRESA The interior of the Váci 1 building.

“We have experienced that it is of increasing importance for tenants to have their office in an environmentally sustainable building, and this is one of the important factors when choosing a property in Budapest. For tenants, the priorities are buildings that are environmentally sound, with all the benefits that this brings, including health, comfort, efficiency and cost savings.”

CEO of Futureal. HB Reavis also expects to obtain WELL “Platinum” and BREEAM “Outstanding” certifications for the Agora Budapest project.

Horizon Development, a specialist in the redevelopment of historic buildings, develops in partnership with DVM. “Horizon Development primarily works with DVM group’s design team, but we also assign mandates to external designers from time to time. The prerequisites include the designer’s sustainable mindset and environmentally responsible use of regional and preferably certified materials,” says Attila Kovács, managing partner at Horizon Development. “The ever-sorelevant priority of creating quality spaces with a focus on the wellbeing of its users is always combined with top aesthetic choices in our projects,” Kovács adds.

Tenant Expectations He sees the demands of tenants as changing. “Based on our experience of more than a decade on the Hungarian development market, we see that tenant expectations have been increasing, including technical quality, accessibility, security, green and community features, aesthetics, functionality and complex in-house services, just to name a few.

While the former differentiating criteria have now become the norm, prices unfortunately still reflect those from previous years.”

Investors are also showing an increased interest in interior design elements in the upgrade of earlier generation buildings. Heitman Property Partners are rebranding Science Park, originally delivered by Skanska in 2004. “The task was to draft an exterior and interior design concept that resonates with the new image, is in-line with the market trends and takes into account the architectural and environmental circumstances,” the owners say. “The jury finally decided upon the concept presented by DVM group; that best harmonized with the renewed image of the building and we will be able to provide a modern, high-quality and humane working environment for our current and future tenants,” Heitman add.

Immofinanz, which has sustainability accreditation for all the buildings in its portfolio, are also responding to tenants’ demands. “We have experienced that it is of increasing importance for tenants to have their office in an environmentally sustainable building, and this is one of the important factors when choosing a property in Budapest. For tenants, the priorities are buildings that are environmentally sound, with all the benefits that this brings, including health, comfort, efficiency and cost savings.”

Artist’s rendering of the White House lobby.

BBJ_2509_special_report_.indd 15

In March, the Royal Institution of Chartered Surveyors (RICS), a professional organization for the commercial property industry, published a statement outlining more stringent conflict-of-interest requirements from its members worldwide in advance of a change in U.K. law that will specifically ban the practice of dual agency from January 1, 2018.

Péter Takács, partner at the tenants-only advisory firm, VLK Cresa, discusses the statement and its implications for Hungary.

Can you briefly explain the problems caused by so-called “dual agency”?

The fundamental problem with a dual agent comes when a brokerage that is assigned to leasing a building by a landlord, solicits advisory business on the tenant side, promising to represent them. Quite often brokers say: it is good for you, as the prospective tenant, because you don’t have to pay a fee for this service. As we all know there is no such thing as a free lunch, and the landlord agent always navigates tenants towards options where they and their landlord get the best deal. There is no win-win here. That is why we think dual agency should be banned from the real estate practice. We believe that there is no space for acting for both sides. You either represent the landlord or the tenant, and do your best to get the best deal for your respective client. Luckily,

Why is the RICS Professional Statement on Conflicts of Interest so important?

Because it is high time for a change in how tenants are treated. This statement finally makes a long-awaited declaration that the current situation is unacceptable and it must be changed, mainly for the benefit of businesses as tenants. In the long-term it will make transactions – and the whole market – more transparent.

Most property agencies deal with 80-90% landlord representation, with just oneor two-person teams – within the same company – acting on behalf of tenants.

The potential risk of a conflict of interest is always present. Most agencies say they have a “Chinese Wall” between the two teams and act as ethically as possible, but tenants never really know if the broker is acting in their best interests.

The statement becomes compulsory for RICS members from January next year, but will that be enough to make a difference if other professional bodies do not follow suit?

RICS is the only professional body active in Hungary with several property agency members, so we hope they will align with the new guidelines and be accountable for clear conduct. Even if a client deals with an advisor who is not an RICS member, they should still demand that the agent act with full integrity and transparency. Education is key. Clients should ask: “Who is representing me? Is your company working for me or for the landlord?” We, as part of our practice, present a mandate letter with each assignment that makes it clear who we work for and who pays our fee. Tenants should start requesting this ASAP, if they haven’t done so yet.

The new rules will ban “dual agency” in the United Kingdom without full disclosure. Is the same thing likely anytime soon in Hungary?

It took the United Kingdom a long time, and we believe it is just a matter of time for Hungary, too. We represent Cresa in the region and we don’t see it happening overnight, but we can imagine Poland, Hungary and Czech Republic introducing regulation soon, maybe three-five years.

Most tenants have to make a property decision every three-five years, but the deal still has to be the best they can get.

Most companies don’t have property experts permanently on staff but they should still know how the market works, who represents them and how to get the best deal. What we eventually also hope to achieve is that a proper license will be needed to act as a commercial property broker, and a requirement to go through continuous education and periodical exams to keep that license.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Péter Takács

companies are realizing that there is too much at stake for them not to hire their own advisor.

2017. 05. 09. 14:35

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Special Report

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Budapest Business Journal | May 5 – May 18, 2017

Keeping Staff Happy: SMEs Moving Into Better Offices

EXPERT OPINION

Appreciating the Role of Service Providers Katalin Honi, MRICS Director of Asset and Property Management STRABAG PROPERTY AND FACILITY SERVICES ZRT.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

The office market in Budapest has gone through several generations of real estate development; office quality has been improving and meets tenant expectations better. Therefore, it is no exaggeration to say that real estate here is built to a world class level.

Though in previous years operationality was not a key aspect from a facility management perspective, today it is essential to consider this from the very planning phase. One could say that operators are luckier with newly developed office buildings, because the industry has grown up from its teething troubles 20 years ago. However, I think developers and architects still under evaluate the role of future operation, and operational experts are not involved in the process early enough.

Of course, there are counter examples too, which eventually become success stories.

While an office building can cause much trouble for its users, the tenants, and can become functionless without a good operator, a good property manager can make strategically important contacts between tenants and landlords from the background.

The property manager knows the tenants’ demands and expectations in connection with the office building and the lease contract, and thus creates the opportunity for a long-term cooperation. Landlords have realized that a strategic partnership must be established with property managers, because that is the way to create value effectively, which is the primary goal of a real estate investor who owns a r eal estate. We, at Strabag Property and Facility Services, do our best every time to put the landlords’ goals into practice as much as we can, no matter if it is a new development or a historical real estate. It is the relationship based on trust that allows us to work on the strategy of the real estate in the long run, both financially and concerning the standards expected from the market. Our eyes are open and we are not afraid of innovations, whether the refunctioning of the area

BBJ_2509_special_report_.indd 16

or a more serious site redefinition with several players before contracts expire, with the consideration of tenants’ demands and also keeping the Landlord’s goal in mind.

We must often understand that you need flexibility to meet expectations, but there is no unrestricted flexibility for all participants. At the same time, if a suitable alternative is offered and risks are minimized, a solution can often be found that will not only result in short-term satisfaction, but also in a long-term, well-functioning relationship for all partners. Trust and future cooperation are appreciated more, and it is the Landlords who have larger and mixed real estate portfolios (even outside Budapest) who will profit most from this. The s atisfied tenant is still the focus.

Strabag PFS’s asset management team has achieved an occupancy rate of nearly 97% for its managed portfolio; the partners are well-known companies and the rental conditions are at market level.

The next task will be the modernization of buildings and the positioning of buildings compared to competitors who may enter the market soon. I am sure it is not only the objective characters of the buildings, but also all the soft services offered that will present a competitive alternative for companies looking for an office space.

Strabag PFS is committed to sustainability, therefore more and more buildings of the managed portfolio are acquiring one of the green certifications. However, our work is carried out with due sustainability care, not only in the case of qualified buildings, but it is the company’s general view to protect the environment, save resources and reduce environmental burdens in every possible way. Beyond sustainability, well-being is also given a greater role when talking about property or asset management, because the satisfaction of employees who work in the office building is the most objective measurement to judge whether a project is successful in the long run. We realized a long time ago that the future is about employees whose demands must be met by employers, not only within the rented facilities of companies, but a complex service package must be offered to them, which includes the common spaces of office building and services in it or nearby.

The steadily increasing competition for talented workforce is putting pressure not only on wages, but also forces even Hungarian SMEs to consider better, more modern offices. ÁGNES VINKOVITS

According to a recent company survey conducted by office rental portal Irodatérkép, in addition to multinational corporations, stable and/or growing Hungarian SMEs are also tending to choose better quality offices that offer modern technologies and flexible arrangement options. In the past year, the demand for “C” category offices, which are usually older and offer few services, has dropped, while the need for offices in “A” category and even “A+” has significantly increased, the survey showed. The rising demand for the highest quality offices is due to a new approach among SMEs, even if most still operate in “B” category offices, Irodatérkép concluded.

This trend is rooted in several reasons.

Hungarian SMEs are probably doing better; according to the data of National Bank of Hungary (MNB), SME loans grew by

8%

in 2016,

suggesting that companies have more faith in the future than a year before.

K&H’s SME confidence index, published in March, also showed growing optimism, especially among small enterprises.

At the same time, growing competition for the best workforce might carry a heavier weight even than the current economic conditions. “Old and dusty printers are becoming embarrassing,” Tibor Szűcs of the Association of

Hungarian SMEs (MKKVE) told the Budapest Business Journal, pointing out that higher salaries have to be combined with modern working conditions if a company wants to stay attractive to staff.

‘A Severe Fight’ Mariann Tóth, a rental manager at property developer HB Reavis, agrees.

“There is a severe fight for talented workers, which makes it inevitable that companies provide workplaces that support well-being and productivity,” she told the BBJ. A survey conducted by the HB Reavis Group also suggests that productivity has a lot to do with office conditions. Those who work in offices with a view of green areas spent less time on sick-leave than those who don’t see green when looking out at their windows. The quality of the view from the office and the amount of natural light is connected to

6.5% of illnesses,

the survey found.

Creating flexible and multifunctional spaces is also crucial, as increasingly people prefer to work on laptops and to get fresh inspiration by changing rooms and seats during the day. “Along with salaries, offices with good services at a good location have become another HR factor,” Gábor Radványi, the main architect of property developer Futureal, says.

Easily accessible workplaces boost productivity as less time is wasted on travelling to different services such as shops, restaurants or the gym, Radványi adds. Also, while office rental fees amount up to around 9% of a company’s budget, wage expenses reach up to 90%, meaning that keeping the staff happy and productive by providing a comfortable working environment is becoming the most important consideration in office buildings, he says. What is more, if the office building has a fancy canteen or a lunchroom attractive enough, the employee will not even have a reason to leave the building for food.

2017. 05. 09. 14:35

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Budapest Business Journal | May 5 – May 18, 2017

Special Report | 17

CEU COLUMN

AI: Masters and Servants György Bőgel Professor of Management CEU BUSINESS SCHOOL

Fraudulent claims cost insurance companies billions of dollars annually. People who compile and submit them may be really creative. Fortunately, agents have a variety of means for fighting fraud. How can they separate the legitimate claims from the fraudulent ones? A Paris-based venture has a solution: it uses artificial intelligence (AI) to put a red light on suspicious ones and explains why, plus suggests actions to investigate the specific cases. The brain of their system is a special computer algorithm available in a Software-as-a-Service model.

This algorithm is permanently educated by the data collected from the clients and fed into the computer, so it is improving over time.

By data we mean Big Data, since the venture processed more than 70 million claims so far

and this number is growing fast. Results are not perfect, but good enough to save a lot of money for the clients.

Intelligent computer algorithms are enjoying a renaissance. The development of many emerging technologies is cyclical, hype periods may be followed by disappointment and funding cuts. AI also had its ups and downs, but it has continued to generate new and successful technologies. Its development was not smooth and even, new solutions appeared, dominated for a while, then got overtaken by the next one.

In 1956, IBM organized a conference for leading scientists to discuss how to construct machines that simulate key aspects of human intelligence. IBM’s salespeople started to promote the concept of “artificial intelligence” but reported back negative reactions: top managers became concerned for their decision-making role and power. IBM retreated, closed the new AI unit and sent a new message to the public: computers are obedient servants, they can only do what they are programmed to do. Sure enough, early AI projects focused on step-by-step logical analysis, e.g. solving puzzles or playing board games. Computer programs were linear and sequential, a series of “do this, then do that” instructions. Access to data, especially to large amounts of messy data, was limited because of technological problems. Early

algorithms ran out of steam as complexity increased, results were impressive but the computers could not do many interesting tasks, were not intelligent enough. Problems had to be reduced to manageable size. Focus shifted to heuristics and rules of thumb.

Computer scientists started to import decision rules from experts such as chess champions, engineers and doctors. Human skill and experience was incorporated into machine algorithms called “expert systems”. These new solutions generated a new AI hype, but only a few systems proved efficient and robust enough to solve practical problems of high complexity.

A new winter arrived for AI, but computer scientists did not give up. A new question was raised: how can a computer algorithm become an expert automatically? Let’s try to mimic the human brain! It contains lots of interconnected neurons exchanging signals among themselves. Researchers simulated that structure by networking “neuronprograms” into layers with input-output relationships. Developers presented the algorithms as many examples as possible and the evolving programs automatically adjusted their weights in response to example data, until the system stilled down. Rather than tell the computer how to solve the problem (programming a solution into it), you show it examples of what you want it to do. Instead of writing a long and complicated decisionmaking program for a computer on how to separate photos of cats and dogs, or trying to feed experts’ heuristics and rules of thumb

into it for the same purpose, one can show many examples (tagged photos of cats and dogs) to the machine and its algorithm will automatically learn how to accomplish this task, and it will improve over time as the number of examples is growing.

Machine learning opened a new chapter in the development of AI. The concept did not work very well initially but took off when Big Data and cloud computing appeared. Large differences in quantity become qualitative.

Learning algorithms trained this way began to recognize complex patterns, words in spoken speech, objects on digital photographs, and yes, fraudulent insurance claims. Because of the exponential growth of computing power and data, algorithms may grow smarter fast, and might exceed the capabilities of their creators on the long run.

After 60 years of efforts and billions spent on R&D, AI is on the rise again. It appears everywhere, it is deeply embedded in the infrastructure of every industry. We must also learn, that modern machine intelligence is not programmed in the conventional sense. How sophisticated learning algorithms wind up is unpredictable and may not be under their creator’s control. We will enjoy their intellect but it will be a black box for many of us.

Computers are not simple obedient servants any more.

This column is part of a series of opinion pieces from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the BBJ.

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Special Report

Office Market Talk We asked some of the leading players in the Hungarian real estate market to give us their overview of the latest developments in the office sector.

ROBIN MARSHALL

CSABA ZELEY, director, asset management, ConvergenCE How would you describe the office market in Hungary today?

The current Budapest office market is clearly a landlord’s market with vacancy at a historical low level, very close to 9%. In fact, it is below 5% in the central and south Buda submarkets.

We are also experiencing the second highest annual take-up and close to 5%

growth in prime rental rates year-on-year.

This is a unique situation in a market which has not witnessed vacancy rates under 10% since the 1990s.

How much new office space do you expect to come to market in Budapest in 2017 and 2018, and how much of it will be speculative?

Now that development activity has recommenced, the forecast new supply is more than 300,000 sqm in 2017 and 2018.

Will it have a significant effect on the overall market? Very unlikely. If Budapest continues to see sustained average net absorption in the upcoming years, the vacancy rate will still be below 10% at the end of 2018 as almost 40% of the new supply is pre-let.

BREEAM and LEED accreditation are now all but compulsory for new office buildings.

Will the same become true of WELL accreditation?

Green certification is now such a given for new office buildings that it is becoming less of an issue. The challenge remains to certify older buildings through renovation and implementation of good environmental practices. The reason for this trend is not just sustainability, but more tenants require their offices to provide a comfortable and healthy environment for their workforces. Since we all spend more time at our workplace than at home, I believe WELL accreditation is an interesting and logical next step forward in this area.

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MÁTYÁS GEREBEN, country manager, CPI Hungary How would you describe the office market in Hungary today?

Due to the increased occupier activity, including corporate SSCs and local ventures coming from both the private and public sectors, there is a very healthy demand for quality office space today. On the other hand, available space is limited due to lack of office development in recent years. As a result, Budapest has achieved a historic low vacancy rate of 9.2%, thus 2017 looks to be the “Year of the Landlord”. Saying that, the correct positioning of your product will be a key element of success.

How much new office space do you expect to come to market in Budapest in 2017 and 2018, and how much of it will be speculative?

In 2017, the expected new stock will be approximately 100,000 sqm, of which more than 80% is pre-leased due to the abovementioned phenomenon. 2018 will be a slightly different story when the bigger scale developments will be completed in an aggregate size of circa 250,000 sqm, but only a minor proportion of that has signed pre-leases. As a result, competition has already begun to attract big names into their premises. It seems that most of these developments will be relatively successful, as the demand is expected to last in the next 18-24 months, but beyond that

developers have to be a bit more cautious when planning new office developments.

BREEAM and LEED accreditation are now all but compulsory for new office buildings. Will the same become true of WELL accreditation?

Although the WELL accreditation as an institution enjoys only a modest recognition in the Hungarian market, many landlord have initiated programs which create and support the recognition of the needs of individuals working within the building and direct toward well-being. I can proudly say that CPI was one of the pioneers in this respect, introducing the HIP (human innovation program – www.hipbudapest.hu) in Balance Tower last year, which aims to offer solutions to a wide range of needs for those working in the building.

What are the latest trends for offices?

A flexible, almost “home feel” working space. New generations have diversified expectations towards the working environment, an air-conditioned office today is not enough. Green gardens with Wi-Fi access, common break out rooms with table tennis, Yoga classes organized in lunch time within the building are just a few examples which can make today’s office location attractive; nevertheless location and price will always remain the major selection criteria.

What demand is there for office space outside of Budapest? How is this changing?

Marginal. Although secondary (university) cities such as Debrecen, Győr or Pécs show

EXPERT OPINION

Szervita Square Building. A new definition of sustainable downtown office Horizon Development’s next commercial project in the pipeline kickstarted in Q1 2017 with the predevelopment process and demolition works of the long deteriorated 1970s office building and parking garage on the development site.

The modern, mixed-use commercial property of elegant design features – including office, retail and luxury residential functions on 14,900 sqm, as well as a 5-story underground garage – is planned to be completed by 2019 at a premium Budapest location bordered by Fehér Hajó, Petőfi Sándor and Bárczy István Street.

Attila Kovács, managing partner of Horizon Development, shared some insights about the office segment of the property: ”8,000 sqm of the project is now awaiting the requirements of office tenants who are offered quality workspaces on four consecutive floors.

Szervita Square Building’s ideal 5th district CBD location is a guarantee for its exceptionally good accessibility, exquisite visibility, maximized brand exposure and unique attractiveness for corporate clients. Companies that choose Szervita Square Building for their next office headquarters will benefit from all the perks of Hungary’s greenest, newly built, certified sustainable, high technical quality building with a timeless design, and enjoy its incredible views and wide service range.

The building features superior spaces with abundant natural light, functional and inviting interiors, flexible layouts, natural proportions and a cosmopolitan ambiance.

Our plan to revitalize the entire area will entail the creation of a larger community space and public park on the current plot to complement the local historic area, and to enhance the building’s profile. The ground

floor restaurants and cafés with their terraces towards the square will create buzzing social spaces, and serve both as an extension of the tenants’ realm, and an inviting gathering place for tourists and locals.”

Szervita Square Building was ‘Architectural Concept of the Year its original, future-proof design at Property Awards, and it also

awarded 2015’ for Resource received

the ‘Planned Project of the Year – Mixed function’ prize at the Office of the Year 2016 competition. The excellent location, the innovative sustainable built-in solutions, and the environmentally conscious technologies are a guarantee for the building’s LEED Platinum environmental certificate, expected in 2019. www.szervita.com www.horizondevelopment.hu

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LÁSZLÓ VAS, investment director, Diófa Asset Management Zrt. How would you describe the office market in Hungary today?

Hungary has definitely become a hot spot in the region and the market is booming again. This is seen in low vacancy rates, in active demand and in strengthening development pipeline.

From the landlord’s point of view, it is still competitive, especially in those sub-markets where vacancy is higher than the average.

For example, in the north-Buda area, vacancy rates are four percentage points higher compared to the market average.

Despite this fact, we managed to sign new lease agreements on 3,700 sqm with tenants such as BSH and Grape Solutions in Óbuda Gate. This building is an excellent example of how to create value in a landmark office building with a breathtaking view in an extremely competitive location.

BREEAM and LEED accreditation are now all but compulsory for new office buildings. Will the same become true of WELL accreditation?

Green accreditations and solutions are very popular. Both landlords and tenants see the benefits of green solutions. Besides building certificates, tenants have started to apply green solutions in office areas. Although several market players are not labelling what they do in terms of green solutions, the wellness office mindfulness has already started in Hungary. At Diófa, we focus on our tenants’ wellbeing with employer friendly green environment and recreation space, offering bicycle users a proper changing room, working together with restaurant operators who offer a wide range of healthy choices. Our long-term goal is to build community within the building.

What demand is there for office space outside of Budapest? How is this changing?

We see that the Hungarian market is still Budapest-focused. It is challenging to develop offices in the countryside. We see a slight opening from the tenant’s side towards other cities in Hungary, mainly from the SSC/BPO sector seeking talent in cities with larger universities and from companies with operations linked to the industrial sector. The lack of modern office stock is a hindrance.

EDINA HORNOK, head of sustainability consultancy, DVM group BREEAM and LEED accreditation are now all but compulsory for new office buildings.

Will the same become true of WELL accreditation?

More and more studies show that human health (both physical and mental) has a significant effect on employees’ productivity,

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therefore wellbeing becomes an increasingly important factor when designing a building.

The labor shortage is also a problem in many areas, and companies nowadays have to provide more attractive workplaces to their employees to retain them. An effective tool is to apply the WELL standard that ensures a comfortable and healthy environment.

The certification can also give a competitive advantage for investors, as a certified building can attract more tenants. Based on the above, WELL certification is expected to become essential on the developing property markets, although the unreasonably high registration and certification fees can result in a slower spread than in case of BREEAM or LEED. VIKTOR NAGY, country manager, operations, Immofinanz How would you describe the office market in Hungary today?

Market demand is certainly growing, and both existing and prospective tenants are demanding more and better services. Immofinanz is both anticipating and leading this, in Hungary and across the region. A continuous program of refurbishment, greener, cleaner buildings and a strongly customer-facing attitude help keep the momentum going.

How much new office space do you expect to come to market in Budapest in 2017 and 2018, and how much of it will be speculative?

There is significant growth in the construction market. Obviously building codes and tenants insist that new builds must be efficient and environmentally sound, but this applies equally to the existing stock. With so much new build on the horizon, existing properties simply must be competitive, and our success in attracting both new tenants and retaining existing customers proves our strategy.

BREEAM and LEED accreditation are now all but compulsory for new office buildings. Will the same become true of WELL accreditation?

It is a little too early to say, but considering the history of BREEAM and LEED certification, then yes, I can imagine WELL becoming increasingly valuable in terms of attracting and retaining tenants. The International WELL Building Institute standard overlaps in many ways with the current accreditation and we will be getting more up to speed on the differences and commonalities. The important point is that we are already doing a great deal in the area of ecologically sound and efficient refurbishment. We offer the kind of buildings that tenants and their staff want to work in. If that leads to further accreditation, then this is a further marker that we’re doing things right.

What are the latest trends for offices?

Without doubt the most significant trend for offices is the move towards a new sort of work place which merges social and work functions as never before.

The myhive concept is our international office brand, already implemented in five of office buildings in Budapest. At the center of the myhive concept is the hotellike lobby, which immediately offers a comfortable setting for both socializing and working. Both the friendly atmosphere

and versatile infrastructure encourage communication between the tenants. The idea of an “international community” providing constant networking opportunities is definitely the shape of things to come, and is in strong contrast to the traditional static environment.

What demand is there for office space outside of Budapest? How is this changing?

Right now, Immofinanz is focusing on Budapest with its office portfolio, although we continue to be active around Hungary with our STOP SHOP retail parks. What happens in Budapest will undoubtedly be mirrored in other major Hungarian cities, and the more saturated the Budapest market gets, the more likely development across the country will become.

MARCIN ŁAPIŃSKI, managing director Skanska Property Romania and Hungary How would you describe the office market in Hungary today?

Budapest is a stable and inspiring place with an increasing number of investments and new projects and this is also shown by the continuously growing GDP of Hungary.

As for the office market, more projects are in pipeline and we see a healthy competition among the companies.

BREEAM and LEED accreditation are now all but compulsory for new office buildings. Will the same become true of WELL accreditation?

We believe that the requirements of employees for quality and friendly workplaces are continuously bringing changes to the Hungarian and global office environment. Tenants are looking for office buildings with BREEM or LEED accreditation not because this is current trend but because they understand much more the benefits coming out of this. If the two previously mentioned certifications refer to the sustainability of the building itself, WELL certification focuses on the wellbeing of the employees working in it.

A healthy and inspiring office environment stimulates creativity and collaboration, reflects business values and helps attract the best employees. As a developer, our goal is to support these needs and create futureproof workplaces where businesses and people can develop together.

What are the latest trends for offices?

An important trend today is that the work environment is changing rapidly due to the requirements of Generation “Y”. Their wellbeing is in the focus of the employer and this becomes also the core of our office developments. We focus on people’s needs as our aim is to create inspiring, flexible and comfortable working environments. On the other hand, companies are seeking a location where their employees are able to socialize

Continue on next page ►

EXPERT OPINION

Building a Career in Construction and Real Estate Bence Szalai Recruitment Consultant HAYS HUNGARY

In Hungary, like other countries in Central and Eastern Europe, the construction and property areas are on an upswing again after the financial crisis. Not only do investments seem to be increasing significantly, but acquisitions also show quite favorable results. Industrial investments, both green- and brownfield, showed a serious increase last year, too. Office buildings still have a significant market share, thus helping the development, construction, facility and sales rental management segments all to grow.

A shortage of a suitable workforce is a general phenomenon in this business area. This is partly due to the fact that architectural and civil engineering faculties do not offer real estate market-related courses. To make matters worse, foreign companies are

also present in Hungary with an aim of offering well-paid opportunities in foreign countries. These two factors have led to the incremental increase of average salaries in the last 12 months.

Generally speaking, from the investment and construction side there is excessive demand for project and construction leaders, but professionals with special knowledge for example energetics and technical building systems such as HVAC, (heating, ventilation, and air conditioning) are also sought after. Real estate management is looking for talents with experience in facility and asset management, leasing and property valuation.

Our partners are mostly multinational companies looking for skilled professionals. A good level of English language knowledge is a must-have criteria; knowledge of other foreign languages is an advantage.

www.hays.hu

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a slight increase in office stock serving the back functions of those international production companies present in the region, overall office development activity outside Budapest is nonexistent. Reasons for this trend are the lack of sufficient employee pool and lack of infrastructure.

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and gather after work hours. Therefore, projects that provide appropriate services to support these needs are gaining a competitive advantage. We see that tenants are looking more for smart and innovative solutions, such as a building management system to automate and control a building, cost-efficient lighting solutions, updated technology and applications for the employees’ use for ordering food, or renting a bike. ÉVA SZILÁGYI, sales manager, Terrapark Kft. What demand is there for office space outside of Budapest? How is this changing?

Significant, but fluctuating demand is there. Around the end of last year and then the beginning of the new year, we were very busy negotiating and signing lease expansions, extensions and new leases. And then we had some quiet weeks and now it is picking up again.

Most of the new tenants here in Terrapark in Budaörs are mainly of sizes between 15 and 500 sqm at the moment. They come here to join the bigger ones that are on more than 2,000 sqm. To accommodate smaller tenants was one of our best decisions many years back. There are Hungarian private enterprises, Hungarian small companies in various sectors and there are international, multinational companies that have representative offices or branches here. Some of these entrepreneurs are local, sometimes it is the bosses who live around here and often

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Budapest Business Journal | May 5 – May 18, 2017

it is the direct connection to the motorways that is crucial in the everyday life of a company.

We could also call it a trend that one tenant brings another, because they like it here and recommend us to their partners, clients, or friends. If you are there on the spot, so they can find you, if you are flexible and efficient, they will rent from you and will stay. ÁRPÁD TÖRÖK, CEO, TriGranit How would you describe the office market in Hungary today?

Offices is still the most active realestate sector in Hungary, with a huge pipeline for the coming years (380,000 sqm in 2017/2018). As 2017 will bring “only” around 100,000 sqm new supply, while the demand has continued to be strong, the vacancy rate decreased already in Q1 2017 to a historic 9.2%, which is the lowest rate ever on the Hungarian office market. Although the increase of prices has narrowed the playground for opportunistic investors, there is still record high interest to invest on the market. In the first quarter of 2017, preliminary real estate investment in CEE stands at EUR 2.3 billion, representing a 41% and 45% increase compared with Q1 2016 and Q1 2015. The huge question is whether, apart from the new completions, there will be enough good office asset to be acquired at the beginning of 2018.

How much new office space do you expect to come to market in Budapest in 2017 and 2018, and how much of it will be speculative?

The pipeline is extra strong – 10% of the whole Budapest office stock will come to the market in 2017/2018, creating almost 380,000 sqm new stock. While in 2017 110,000 sqm is expected, 2018 will bring almost 280,000 sqm new office space to the market. More than 60% of the 2017 stock will be speculative, the office spaces to be delivered in 2018 are far more speculative.

BREEAM and LEED accreditation are now all but compulsory for new office buildings. Will the same become true of WELL accreditation?

Nowadays, due to more restrictive energy efficiency regulations, buildings are subject to new technical requirements and solutions anyway, and office buildings are more often built in a green way. Furthermore, international companies are also restricted to lease office spaces that are certified green offices; the corporate sustainability responsibility agenda adopted in most international corporations simply obliges them to do this. In Hungary, the number of offices with BREEAM or LEED certifications has tripled in the last three years; today it has reached 34% of the whole modern Budapest office stock, and the number is growing. WELL certification is quite new in Hungary. It supports an important goal; the working surroundings of colleagues is of great importance. As the largest areas of an office building are created on the base of the tenant’s requests, reaching the goal of WELL certification requires close cooperation with the tenants.

What are the latest trends for offices?

Office developments and leases are still primarily defined by costs. Everyone aims for the least amount of unused floor area.

Developers don’t know whether the building will be leased by an SSC or a legal firm, the two extremes from a fit-out perspective.

From this perspective, it is important to develop spaces where floors can allow for any size and layout from big (2,000 sqm) to small (350 sqm). As for general refurbishment, or even services, I can say that the trend is still having nice common areas, a wide range of recreational facilities, bicycle storage, electric car chargers or full accessibility.

What demand is there for office space outside of Budapest? How is this changing?

The Hungarian countryside market is not as mature as in Poland or in Czech Republic, and no reliable statistics are available regarding vacancy, stock and supply. Some SSCs (Budapest Bank at Békéscsaba, IT Services at Debrecen) have committed themselves to secondary cities, but we have no feedback regarding their satisfaction level. It is clear that the state provides extensive cash subsidies, tax incentives and other perks to those companies who are willing to set up, relocate or extend their operation into regional towns. Having said that, we expect this slow trend to continue, but since Hungary has one of the most concentrated capitals in Europe, we do not believe that the workforce in regional cities exists to facilitate large corporation’s requirements.

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EXPERT OPINION

Leveraging the Up-curve for Long-term Benefit Mátyás Gereben, country manager of CPI Hungary, talks about a historic deal, looking out for tenant satisfaction and playing a longterm game.

“From a Hungarian point of view, CPI did not even exist before 2014. Between 2014 and 2017 the speed of increase of CPI has been so immense that, with this acquisition we became one of the top five investors in the Budapest market. That also is historic.”

When the Czech-owned CPI Property Group announced on March 30 it had just closed a EUR 650 million, multi-country portfolio purchase, it described the deal as historic.

Country manager Mátyás Gereben says that is true whether looking at the group or its Hungarian operations.

“You have to understand the evolution of CPI in the last five-ten years in global terms. CPI has been around for 20 years and this is unquestionably the biggest acquisition in its existence, so it fully justifies being called historic,” Gereben says.

“From a Hungarian point of view, CPI did not even exist before 2014.

Between 2014 and 2017 the speed of increase of CPI has been so immense that, with this acquisition we became one of the top five investors in the Budapest market. That also is historic.”

Long-term Game The fact that Hungary formed such a sizeable part of the overall portfolio is also significant, he says. “That the Czech owner believes in the Hungarian market and wants to put money and energy into developing the Hungarian business is good for us. The overall reputation of CPI also helps, because it is pretty well known in the market that it is not into short-term profit deals.

We do not seek to buy at high yield, do whatever value add we can in the time available to us and then exit. Longterm cash flow generation is the aim of the game from our side.”

In total the deal involved properties in Czech Republic, Hungary, Poland and Romania with a total leasable area of

as the largest sea aquarium in Central Europe. The center has 160 shops across 40,000 sqm.

Mátyás Gereben, country manager of CPI Hungary.

expand dramatically. “Previously, the total managed portfolio of CPI Hungary was a little more than 200,000 sqm, so we have grown

almost

60%

with these acquisitions,” Gereben explains. “Of that initial 200,000 sqm, there was marginal logistic space, a few hotels, but 180,000 sqm was offices, so this acquisition has balanced out the two biggest commercial interests of CPI. Right now, our office and retail portfolios are pretty much 50-50. That gives us a good balance in terms of opportunities.”

Cross-jurisdictional deals are, by their very nature, complex, yet this one took what seems like an impressively short period of time to pull together. It started with an invitational tender that led to six bidders in the first round, which was then whittled down to three. “We started the initial discussions sometime in April last year, which means 12 months was enough for the due diligence and negotiating the SPA [sale and purchase agreement] and processing the handover.

It is quite an extensive portfolio; 12 months is a pretty good time frame.”

Triple-A The Andrássy Palace is a twin office complex located in the heart of Budapest between Andrássy út and Paulay utca. The renovation of the classical Andrássy building ensured that all the original elements were retained and restored, and it also gained a new roof conference room using a unique combination of glass, steel, wood and stone. The Paulay Ede building forms a more contemporary wing of the Andrássy building. “It is an ‘A’ class building in a triple-A location and functioning very well. It is 100% let at present and so will add a lot of value to the existing portfolio,” Gereben says.

Right now, the properties are being integrated into CPI Hungary’s management systems, but what are the next steps? “Obviously, we have longterm goals. Neither of the shopping centers are latest generation, but both have very healthy turnover and footfall figures, which is a good base.

The focus will be on Campona. Polus had a significant refurbishment in 2012-13-14, so in terms of renewal and facelift it does not need that much.

It is almost fully let, but even so we think there are improvements we can make over time in terms of customer satisfaction and optimizing the tenant mix. Campona, on the other hand, has never really been refurbished. There was some basic work done in 2010, but I would not call it a refurbishment.

Then we have to look at the existing shops and distribution, and we also have to recognize that there is a different catchment area to 17 years ago when it first opened.”

The more eye-catching elements of the Admittedly, the ink has barely had Hungarian portion of the deal, however, time to dry on this historic deal, but are are the two shopping centers, which there other acquisitions in the pipeline? were among the first generation of malls in Budapest. Indeed, Polus was originally “Opportunity is driven by the market; at the moment – in all fields of real estate – built by the developer TriGranit, and there is a hunger from the demand side opened in 1996 as the very first to move into quality real estate: we are American-style shopping center in on an up-curve. We are looking at other Hungary, with 260 retail shops over an opportunities, there are some in the area of 58,000 sqm. The Campona is a pipeline although I cannot talk about little younger, having opened in 1999, them right now, but there is interest and and is perhaps best-known for its tenant appetite there to leverage this up-curve.” the Tropicarium, which opened in 2000

about

265,000 sqm.

The portfolio consists of the major shopping centers Olympia Plzen and Nisa Liberec in Czech Republic, Ogrody in Poland, Polus and Campona in Hungary, and Felicia in Romania; the multifunctional complexes Zlaty Andel in Prague and Andrássy Palace in Budapest; and two Interspar stores in Hungary.

Almost half of the total leasable area taken in by the deal is in Hungary (coming to 113,000 sqm aggregate); that has seen the local company

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Campona Shopping Center.

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Budapest Business Journal | May 5 – May 18, 2017

EXPERT OPINION

Focusing on Tenant Needs dr. Tamás Balogh Attorney at law SCHOENHERR HETÉNYI ATTORNEYS AT LAW

H

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ealthy work environment, light spaces, clean design, energysaving solutions are the hallmarks that tenants are looking for on the office market. It is no longer only high quality office spaces and innovative designs that are in the focus of tenants; maintaining the well-being of their employees by providing them with a person-oriented working environment has become equally significant.

No wonder, then, that the latest office developments in Budapest are offering relaxation areas, green community spaces and terraces and in some cases even outdoor working areas. As expected, the coming years seem likely to follow the upward trend of the previous year and the growth of these high quality, green and eco-friendly office spaces will continue.

The tendency is not only bolstered by the tenants’ changing expectations, but also by the limited supply of newly developed high quality office spaces, low vacancy rates and the positive macro-economic outlook of the country. Although a significant portion of new projects are pre-leased, some developers on the market are not afraid to take additional risks and offer speculative developments for future tenants.

Given that, during the years of the financial crisis, the office market was lacking in new office developments and tenants are currently striving to keep their existing employees and to attract new ones, many businesses are considering changing their leasing strategy and moving to one of the newly developed offices. From time to time, the question arises whether such an exit is permitted by the applicable lawful and contractual provisions and what could be the legal ways out of long-term commitments.

It is widely known that, in the case of an indefinite term lease, both the landlord and the tenant may terminate the agreement at any time during the lease term. Of course, it should be kept in mind that termination rights must always be exercised in line with the relevant provisions of the lease agreement.

Although more traditional definite term lease agreements do not provide early exit options for the parties, it may be worth having a brief overview of termination rights and the legal consequences of an unjustified early termination. As described above, definite term lease agreements may not be terminated with an ordinary notice, i.e. without referring to a particular cause of termination, unless the parties explicitly agree upon ordinary termination

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rights and the notice period to be applied for such termination. Apart from the above, a serious breach of contract may entitle the tenant, as the injured party, to terminate the lease with immediate effect by submitting an extraordinary termination to the landlord.

The event of breach on the landlord’s side that is usually referred to is noncompliance with the material obligations of the landlord (e.g. the leased offices are not suitable for their intended, contracted purpose or the utilization for that purpose is severely restricted). Nevertheless, terminating a lease without a valid legal ground by a tenant may not be a legally safe option, as such termination may not be held lawful in case of a court test.

Should the tenant terminate the lease due to an unlawful reason or otherwise refuse to pay the rent, at the end of the day, the landlord may ask for compensation for damages caused. In this respect, however, it should be noted that, as opposed to the widely-held assumption, the landlord could not simply ask for all the income that would have been due in the remaining term of the lease. Given the obligation of the landlord to mitigate any damages occurred as a result of an unlawful early exit, the compensation could be reduced by several elements. For example, any damages of the landlord shall be reduced with the reasonably collectable income that the landlord should be able to realize by way of lease of the offices under current market terms to others, which shall be done without any delay.

Although it may seem tempting for some tenants to switch their leases to an office in one of the prestigious newly constructed buildings, it is not advisable to terminate their existing lease agreements without due cause with regard to the above legal consequences of unlawful termination. Instead, it might be worth considering starting amicable negotiations about the closure of the lease relationship with the landlord.

Although it is not common on the market, we have seen fruitful negotiations between the parties underpinned by financial compensation granted for the landlord for the early exit of the tenant.

The Creative Coworking Equation

More than mere “In the region, we were the providers of working first to establish a space spaces, major coworking and knowledge-sharing offices attribute their model that promotes success to the inspiring entrepreneurship.” and creative environment professionals of all fields time was limited and we did not want to sacrifice it for events,” Levendel explains. benefit from when they First Ever work in one of them.

BBJ STAFF

From digital nomads to professional speechwriters and musical score printing companies, Hungarian coworking offices house an array of freelancers and business that don’t work from a traditional office or at home. Their major appeal lies in providing a knowledge-sharing creative community – something that has helped the concept to take off in Hungary and, indeed, worldwide.

As a result of Hungarian job market changes (such as the introduction of the fixed rate KATA tax system specifically aimed at freelancers) and global remote working trends like the expansion of collaborating apps, the need for flexible workplaces began to grow. Today,

Hungary has

30

coworking spaces: 20 in Budapest and ten in the countryside.

“Since each of us – at least the major ones – has a different focus, we don’t see each other as competition,” Áron Levendel, co-founder and managing director of Kaptár told the Budapest Business Journal.

Opened in 2012, Kaptár was founded based on the founders’ own need to find a place to work: one that offered the comfort of a home without the distraction, and also company. Kaptár offers two types of space. Flexi is for those who don’t need a dedicated workstation and don’t mind sitting at different desks/chairs. Fixie is a desk that you can hire and use all the time, even leave your stuff on when you leave until your return. Kaptár originally also offered a venue for events, but when the two activities were running in parallel, it decided to favor coworking. “Space at that

The first ever coworking office in Hungary, Loffice, also offers its tenants the choice between dedicated and flexible spots. The founders, Kata Klementz and her sister Panni, read about the concept in the United States on the internet. They decided to adjust it to local market conditions and opened Loffice in 2009. By now they have five offices in Budapest and Vienna scattered across the city’s prominent places like Paulay Ede, Király, Sas, Salétrom, and also in Schottenfeldgasse, Vienna’s creative district. Being the pioneer in the Hungarian market, Loffice has helped kick-start the operation of many enterprises. “In the region, we were the first to establish a space and knowledge-sharing model that promotes entrepreneurship,” says Klementz.

Offering coworking space appears to be a lucrative business. Depending on the type of space, Loffice says it has

80-100% uptake

levels and host firms with anywhere between three and 20 staff on average. It also gives space to two training centers: The Culinary Institute of Europe and Werk Akadémia. Kaptár, too, has reached 80-90% uptake, though it took almost two years to get into the black after its launch. By the fourth year it was generating solid revenues. Last year, the company earned HUF 40 million – having doubled revenues in the past few years.

Since the pool of potential clients is continually growing, it has decided to expand. “There may be around 100,000 freelancers we can reach,” Levendel says, and that number is growing.

So, after the most recent expansion, which involved hiring the store across the street, it plans to open two more offices in Budapest (one this summer, the other in the fall).

Nevertheless, it shall always be kept in mind that financially sound and reputable tenants that are long-standing clients represent key assets for landlords.

Therefore, it is of utmost importance for a landlord to keep its decent client portfolio.

Consequently, in most cases landlords have an open mind to specific requests of their clients, even by renovating or reconstructing the leased offices in line with the latest trends so that it corresponds to their tenants’ needs to the greatest extent.

Áron Levendel, co-founder and managing director of Kaptár www.schoenherr.eu

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CityZen Office Building - Be here. Be more.

The “A” Category, BREEAM Certified, 12 600 m2 CityZen Office Building offers a professional and comfortable office environment, with 3 500 m2 free space available for new tenants. Located on the Váci Corridor, the building is easily accessible by car or public transport (M3, 75, 79 trolley buses). The fully customisable internal spaces and the premium quality services make CityZen one of the best office buildings in Budapest.

1134 Budapest, Váci út 37. | +36 70 364 6823 | info@cityzenirodahaz.hu | www.cityzenirodahaz.hu

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Budapest Business Journal | May 5 – May 18, 2017

Category 'A' office buildings in greater Budapest

36,867 42,681

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32,000 38,000

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19 640

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aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

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37,312 74,844

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minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

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1

Company Website

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

Ranked by net office space (sqm)

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

1095 Budapest, Lechner Ödön fasor 10/B (1) 456-6200 (1) 456 6201 mgs@trigranit.com

✓

CBRE Leasing, www.cbre.hu

✓

✓

✓

–

– TPG Real Estate (100)

✓

✓

–

✓

✓

✓

–

Ÿ Ÿ

1139 Budapest, Váci út 81.

(1) 412-3680 (1) 412-3681 leasing@gtc.hu

✓

✓

✓

Cushman&Wakefield, www. cuhmanwakefield.hu, Eston International, www.eston.hu

✓

✓

✓

–

– CPI Property Group (100)

1138 Budapest, Dunavirág utca 2–6.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

✓

✓

✓

Cushman& Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– CA IMMO (100)

1133 Budapest, Váci út 76.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

–

– Immofinanz AG (100)

1134 Budapest, Váci út 45.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

Ÿ Ÿ

1134 Budapest, Dózsa György út 128-130.

(1) 412-3680 (1) 412-3681 leasing@gtc.hu

✓

– Allianz (50), Generali (50)

1054 Budapest, Szabadság tér 7.

(1) 302-9010 (1) 302-9020 anett.eles@bankcenter.hu

–

Ÿ Ÿ

1138 Budapest, Népfürdő utca 22.

(1) 412-3680 (1) 412 3681 leasing@gtc.hu

–

– Skanska Central Europe Holding B.V. (100)

1095 Budapest, Soroksári út 44.

(1) 382-9100 (1) 382-9129 property@skanska.hu

–

Ÿ Ÿ

1051 Budapest, Széchenyi István tér 7–8.

(1) 473-1209 – tamara.szanto@ eur.cushwake.com

–

– IMMOFINANZ AG (100)

1095 Budapest, Soroksári út 30–34.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

gateWay offiCe paRk www.gatewaybc.hu 3

4

Capital squaRe www.caimmo.hu

myhive átRium paRk 5

6

www.immofinanz.com, iroda.immofinanz.com, www.myhive-offices.com/hu

spiRal

www.gtc.com.pl

31,200 38,400

30,549

Ÿ

Underground+8

378 5

25 733

13.50 950 HUF

7

– 5

14 443

– –

NAV

10

200 3

17 480

16–20 4.40

BÉT, BorsodChem, Citibank, Regus, Weil

16

89 5

10 413

13-15 3.82

IBM, Huawei, Metlife, Ford, TMF Group

8

400 5

16 557

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

JLL, Robertson

–

–

✓

Aventus Real Estate, www. aventusrealestate.com

–

Cushman&Wakefield, www. cushmanwakefield.hu

✓

✓

✓

✓

✓

✓

bank CenteR

www.bankcenter.hu 30,041 52,184

7

duna toWeR 8

www.dunatower.hu

29,800 31,504

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

mill paRk

www.skanska.hu 29,000 56,100

9

9

Roosevelt

www.roosevelt-budapest.com

29,000

Ÿ

9

260 5

8 232

19–24

28,520 34,300

Underground+7

760 5

15 618

13 890 HUF

Ÿ

Ÿ

Ÿ

✓

✓

–

–

✓

✓

✓

✓

–

✓

✓

✓

✓

–

✓

Cushman& Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

✓

✓

✓

myhive halleR gaRdens 11

www.immofinanz.com, iroda.immofinanz.com, www.myhive-offices.com/hu

BBJ_2509_special_report_.indd 24

Ÿ

✓

–

✓

✓

✓

✓

✓

JLL, C&W

✓

✓

✓

2017. 05. 09. 14:35

www.bbj.hu

13

paRkWay

27,600 31,200

14

sCienCe paRk

27,278 29,450

15

doRottya udvaR

27,050 28,846

16

ip West

26,500 30,100

www.eston.hu

www.sciencepark.hu

www.dorottya.net

www.caimmo.hu

17

népliget CenteR

26,000

17

paRk atRium

26,000

19

váCi gReens b épület

25,303

20

www.nepliget-center.com

www.park-atrium.com

www.vacigreens.hu

bsR CenteR www.bsr.hu

Ÿ

Ÿ

Ÿ

25,000

Ÿ

9

787 3

8 554

11.50–12.50 900 HUF

7

600 5

10 388

Ÿ Ÿ

4

296 5

6 566

11–12.50 3.80

Ÿ

8

350 3

15 841

12–14.50 990 HUF

Siemens, British Telecom, Transcom

Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

✓

–

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Ÿ

✓

ESTON International Zrt., www.eston.hu

✓

CBRE, www.cbre.hu

✓

Ÿ

1138 Budapest, Váci út 117–119.

(1) 785-5208 – –

Ÿ Ÿ

1138 Budapest, Váci út 135–139.

(1) 473-1209 – imre.andrea@ whitestar-realestate.hu

10 377

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

–

✓

–

Ÿ

300 5

Ÿ Ÿ

14

✓

✓

✓

✓

1117 Budapest, Budafoki út 91–93.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

Ÿ Ÿ

Ÿ Ÿ

–

–

– (100)

1068 Budapest, Dózsa György út 84/B –

8

✓

1113 Budapest, Bocskai út 134–146.

(1) 888-0395 (1) 888-0399 dorottyaudvar@ eur.cushwake.com

Ÿ Ÿ

✓

Ÿ

✓

Ÿ Ÿ

–

✓

11–13 1,100 HUF

1117 Budapest, Irinyi József utca 4–20.

(1) 374-3040 – office.hungary@cbre.com

✓

✓

12 360

✓

– Heitman (100)

✓

✓

250 3

✓

Ÿ Ÿ

✓

✓

8

✓

✓

–

– (100)

–

✓

✓

✓

✓

1087 Budapest, Könyves Kálmán körút 54–58.

(1) 877-1000 (1) 877-1001 info@eston.hu

–

✓

✓

✓

✓

1132 Budapest, Váci út 20–26.

(1) 451-4760 (1) 451-4289 office@mompark.hu

✓

Ÿ

✓

✓

Ÿ Ÿ

✓

10–13 1,100 HUF

✓

–

✓

12 365

✓

✓

1097 Budapest, Könyves Kálmán körút 11.

(1) 473-1209 (1) 473-1210 Tamara.Szanto@ eur.cushwake.com

200 3

✓

✓

addRess phone fax email

CA IMMO

10

Ÿ

✓

oWneRship (%) hungaRian non-hungaRian

–

Cusman& Wakefield Kft., www. cushmanwakefield.hu

Ÿ

indepedent poWeR supply

✓

biCyCle paRking

–

Waste ReCyCling

–

leasing agent, name, Website

natuRal light and aiR ventilation

Ÿ

bank bRanCh/atm

Ÿ Ÿ

in-house faCility management

12 399

suitable foR disabled people

200 5

gReen enviRonment

7

24-houR ReCeption & seCuRity seRviCes

28,065 43,000

Wellness and spoRt seRviCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

no. of elevatoRs no. of paRking spaCes

www.westendbusinesscenter.hu

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

West end business CenteR

no. of levels

12

gReen teChnologies

seRviCes

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

Company Website

Special Report | 25

3

Budapest Business Journal | May 5 – May 18, 2017

–

Ÿ

✓

White Star Real Estate, www. whitestar-realestate. com

✓

✓

✓

Ÿ Ÿ Ÿ Ÿ

✓

✓

✓

–

pRomenade gaRdens www.promenadegardens.hu 20

25,000

Ÿ

6

Ÿ 5

18 342

Ÿ Ÿ

Celanese

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Ÿ Ÿ

1133 Budapest, Váci út 80.

(1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

8

– –

12 370

14–16 3.90

Vodafone, CITI, Cognizant, Bank of China

✓

–

✓

–

✓

✓

✓

–

✓

✓

✓

–

– CPI Property Group (100)

1087 Budapest, Hungária körút 40–44.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

Ÿ Ÿ Ÿ Ÿ

Erste Ingatlan Alap (100) –

1138 Budapest, Népfürdő utca 24–26.

(1) 920-2161 (1) 920-2199 antal.garamvari@ erstealapkezelo.hu

✓

✓

Erste Ingatlan Alap (100) –

1133 Budapest, Váci út 96–98.

(1) 920-2161 (1) 920-2199 antal.garamvari@ erstealapkezelo.hu

–

– CA IMMO (100)

1092 Budapest, Köztelek utca 6.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

✓

(100) –

1082 Budapest, Futó utca 35-45.

(1) 266-2181 (1) 688-5498 office@futureal.hu

aRéna CoRneR

www.arena-corner.hu 24,200 47,000

22

23

euRope toWeR

www.erstealapkezelo.hu

24,000 38,000

24

noRdiC light

23,000 44,000

25

City gate

22,800 25,000

26

CoRvin toWeRs

22,000 25,000

www.erstealapkezelo.hu

www.citygate.hu

www.futureal.hu

BBJ_2509_special_report_.indd 25

15

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Erste Bank Hungary Zrt.

Schneider Electric Zrt., Mercedes-Benz Kft., Monsanto ✓ Hungária, Harman Becker Kft.

7

400 5

12 404

Ÿ Ÿ

8

300 5

10 407

12.50–13.95 1,200 HUF

IBM

7

241 5

2/tower 440

13.75 4.50

P&G, Mediaworks, Systemax, ARM, Futureal

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

–

✓

CBRE, www.cbre.hu, Cushman&Wakefield, www. cushmanwakefield.hu

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

2017. 05. 09. 14:35

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2017

indepedent poWeR supply

biCyCle paRking

leasing agent, name, Website

Waste ReCyCling

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption & seCuRity seRviCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

Ÿ Ÿ

Wellness and spoRt seRviCes

no. of elevatoRs no. of paRking spaCes 5 222

RestauRant, Café

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

9

100 5

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

no. of levels

Company Website

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

26 | 3

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

1088 Budapest, Rákóczi út 1–3.

(1) 235-7770 (1) 235-7767 info@ersteingatlan.hu

east-West business CenteR www.ersteingatlan.hu 27

21,500 29,000

teRRapaRk C+d www.terrapark.hu

21,282

28

29

Ÿ

váCi CoRneR offiCes www.vacicorneroffices.hu

21,047 33,000

30

alkotás point

www.alkotaspoint.hu

20,500 25,100

30

vision toWeRs

20,500

www.erstealapkezelo.hu

Ÿ

✓

–

✓

–

✓

✓

✓

CBRE

✓

✓

✓

✓

Erste Ingatlan Kft. (100) –

S&T, Flaga, Partner in Petfood, GDFSuez, Trane, Bioderma, Progast, Goodmills, Dexon Systems, Edco, KaiserFood, Ricoh, Bellinda, ✓ Controltech, Rockwell, Gemma, Cellum, PBA, Budasensor, GTH Holding, Patona és Társa, Innoveng, Groupe SEB, Compuworx

✓

✓

✓

✓

✓

✓

Terrapark Kft., www.terrapark.hu

✓

✓

✓

✓

– Terrafinanz GmbH (100)

2040 Budaörs, Liget utca 3/2.

(23) 423-323 (23) 423-324 info@terrapark.hu

–

Váci Corner Offices Kft. (100) –

1138 Budapest, Váci út 144–150.

(1) 580-2280 – info@vacicorneroffices.hu

Ÿ

5

15 3

13 385

7–10 2.50–3

9

200 5

9 353

Ÿ

Mylan, Intrum Justitia, MVM Partner, Sony, CRH, Asseco

3

6

380 5

9 395

15–15.50 4.45

Bayer, Concorde, Euronet, Medicover, Signal

6

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

KPMG, TEVA, Provident, Medicover

7

254 5

14 299

13.50-16 3

Ÿ

10

400 5

11 352

12–13.50 1,200 HUF

6

250 5

6–9

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

–

✓

White Star Real Estate Kft., ✓ www. whitestar-realestate.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

–

✓

–

✓

✓

✓

✓

–

Ÿ Ÿ Ÿ Ÿ

– Heitman (100)

Erste Ingatlan Alap (100) –

1123 Budapest, Alkotás utca 50.

(1) 382-5100 (1) 382-5101 info@ whitestar-realestate.hu 1134 Budapest, Angyalföldi út 6. ((1) 920-2161 (1) 920-2199 antal.garamvari@ erstealapkezelo.hu

gtC White house

www.gtcwhitehouse.hu 20,404 21,574

32

✓

–

✓

✓

✓

✓

–

Cushman&Wakefield, www. cushmanwakefield.hu, CBRE Hungary, www.cbre.hu

✓

✓

✓

✓

–

Ÿ Ÿ

1134 Budapest, Váci út 47.

(1) 412-3680 (1) 412-3681 leasing@gtc.hu

✓

✓

– (100)

1134 Budapest, Váci út 35.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

✓

RiveR estates www.simmoag.hu

20,245 21,340

33

Citibank, DIGI, Gilda Max, HostLogic, ✓ Danone, Erzsébet Táborok

✓

✓

✓

✓

✓

–

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

Ÿ

12.50–13.85 2.66

GE, GE Healthcare, Sykes International, Enterprise Communications, Atenor

✓

✓

✓

✓

✓

✓

✓

Robertson, www.robertson.hu

✓

✓

✓

✓

Ÿ Ÿ

1138 Budapest, Váci út 117-129.

–

34

váCi gReens C épület

18,935

35

R70 offiCe Complex

18,700 19,000

10

300 3

9 450

10.90–14.50 1,200 HUF

Keller, Develor

✓

✓

✓

✓

✓

✓

–

Cushman& Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– (100)

1074 Budapest, Rákóczi út 70–72.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

36

mom paRk iRodák www.momparkoffice.hu

18,638 48,000

6

230 5

13 486

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

Cushman& Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

✓

Ÿ Ÿ

1123 Budapest, Alkotás utca 53.

(1) 487-5501 (1) 487-5542 office@mompark.hu

infopaRk d épület

18,526

7

200 3

7 350

12–12.75 3.20

STRABAG Zrt., IBM, SEMCON

✓

–

✓

✓

✓

✓

✓

GAMMA Properties Kft.

✓

✓

✓

✓

– TRIUVA (100)

1117 Budapest, Gábor Dénes utca 2.

(1) 382-7560 (1) 382-7570 office@gamma-am.hu

✓

ConvergenCE, www. convergen-ce.com

✓

– KGAL (100)

1062 Budapest, Teréz körút 55–57.

(1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com

✓

(100) –

1082 Budapest, Futó utca 47–53.

(1) 266-2181 (1) 688-5498 office@futureal.hu

37

www.vacigreens.hu

www.caimmo.hu

www.infopark.hu, www.gamma-am.hu

Ÿ

Ÿ

eiffel téR iRodaház 7

250 5

10 365

20 3.90

Cetelem Bank, Medicover, Dealogic, AXN Hungary, TESCO, Grundfos, ESAB, Givaudan, Costa

8

– 5

6 342

13.50 3.95

Epam, DAS, ERGO, Futureal

www.eiffelsquare.com

18,500 23,500

38

39

CoRvin one

www.futureal.hu

BBJ_2509_special_report_.indd 26

18,000 20,000

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

2017. 05. 09. 14:35

www.bbj.hu

EMEA, Getronics, Fővárosi Ítélőtábla, EPAM, Oberbank

4

250 3

5 245

7.50–9.50 3.50

Invitel, DuPont, Tchibo, TOTAL, Coca-Cola Hellenic, Carlsberg

9

360 3

5 406

12.50–13.95 1,100 HUF

HP, Novartis

9

– 5

6 300

Ÿ Ÿ

Morgan Stanley, Oracle Hungary, Nestlé, KLM, Lexmark

7

250 5

5+5 427

12.90-13.50 990 HUF

Ÿ

10

– 5

6 252

Ÿ

Avis Budget Group, ABB, MSCI, Deichmann, Innovative Dental Care

✓

✓

✓

✓

–

✓

ConvergenCE, www. convergen-ce.com

✓

ConvergenCE, www. convergen-ce.com

indepedent poWeR supply

11–13 3.90

✓

biCyCle paRking

6 254

✓

Waste ReCyCling

6

400 3

✓

leasing agent, name, Website

natuRal light and aiR ventilation

Morgan Stanley, MSD Pharma, Lexmark

bank bRanCh/atm

Ÿ Ÿ

in-house faCility management

8 250

suitable foR disabled people

– 5

gReen enviRonment

9

24-houR ReCeption & seCuRity seRviCes

18,000 21,000

Wellness and spoRt seRviCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

no. of elevatoRs no. of paRking spaCes

www.caimmo.hu

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

millennium toWeR iii

no. of levels

39

gReen teChnologies

seRviCes

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

Company Website

Special Report | 27

3

Budapest Business Journal | May 5 – May 18, 2017

✓

✓

✓

–

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

– (100)

1095 Budapest, Lechner Ödön fasor 8.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

✓

– Bluehouse (100)

1027 Budapest, Henger utca 2.

(1) 225-0912 (1) 375-0445 info@margitpalace.com

–

– Bluehouse (100)

2040 Budaörs , Puskás Tivadar utca 4.

(1) 225-0912 (1) 375-0445 office@convergen-ce.com

–

– (100)

1114 Budapest, Bartók Béla út 43–47.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

–

– (100)

1093 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

–

GRT Group (100) –

1117 Budapest, Alíz utca 4.

(1) 382-7020 (1) 382-7021 grtgroup@grtgroup.hu

–

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Kassák Lajos utca 19.

(1) 888-4120 (1) 888-4171 alapkezelo@ diofaalapkezelo.hu

✓

Erste Ingatlan Alap (100) –

1117 Budapest, Alíz utca 2.

(1) 920-2161 (1) 920-2199 antal.garamvari@ erstealapkezelo.hu 1139 Budapest, Teve utca 1/A-C (1) 451-8040 (1) 236-0435 offices_hu@ immofinanz.com

maRgit palaCe iRodaház

www.margitpalace.com 17,138 20,323

41

✓

–

✓

✓

✓

✓

✓

✓

✓

teRRapaRk next b www.terraparknext.com

17,042 20,055

42

43

baRtók ház

17,000 30,000

43

millennium toWeR ii

17,000 18,600

45

offiCe gaRden iii

16,900 18,500

www.caimmo.hu

www.caimmo.hu

www.officegarden.hu

gReen house 46

46

www.diofaalapkezelo.hu

offiCe gaRden ii

www.erstealapkezelo.hu

16,800 30,200

980 HUF

✓

✓

✓

✓

✓

✓

–

✓

–

–

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

CA IMMO

–

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

16,800 27,000

8

– 5

6 310

12.50

16,644 17,310

Underground+9

– 3

6 254

10.50 1,260 HUF

Ÿ

✓

–

✓

✓

✓

✓

✓

JLL

✓

✓

✓

–

– IMMOFINANZ AG (100)

11

– 5

6 264

Ÿ Ÿ

Boehringer Ingelheim Pharma, Cognizant, Vodafone

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– (100)

9

– 5

6 222

– –

Budapest Bank

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Ÿ Ÿ

8

250 3

4 177

11.50–12.50 2.700

Ÿ

–

–

✓

–

✓

✓

✓

Cushman& Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

✓

Ÿ Ÿ

✓

–

✓

✓

✓

✓

✓

Robertson Hungary Kft., www.robertson.hu

✓

✓

✓

✓

Ÿ Ÿ

1138 Budapest, Váci út 117–129.

–

✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1 E(1) 888-4120 (1) 888-4171 alapkezelo@ diofaalapkezelo.hu

–

Ÿ Ÿ

1123 Budapest, Nagyenyed utca 8–14.

(1) 268-1288 (1) 268-1289 info.budapest@ cushwake.com

Ÿ

TATA, Syngenta, Pirelli

✓

–

✓

✓

–

✓

–

–

✓

✓

✓

myhive13 - globe 13 48

www.immofinanz.com, www.myhive-offices.com/hu

49

millennium toWeR i www.caimmo.hu

16,300 18,800

50

gtC metRo

16,192

51

business CenteR 140

16,000 23,800

52

www.gtc.com.pl

www.cushmanwakefield.hu

váCi gReens a épület –

Ÿ

15,693 24,803

Underground+6

300 3–5

Ÿ

8

13 2.58

Enterprise Communications Kft., SYKES Central Europe Kft., GE Infrastructure Hungary Holding Kft., GOC Kft., Atenor Group Hungary Kft., BNP Paribas Kft.

10

130 5

6 291

12.25–14 3.40

Lufthansa Systems, EIT, National Instruments, 3M

6

280 5

7 399

Ÿ Ÿ

infopaRk e épület 53

54

www.diofaalapkezelo.hu

kRisztina palaCe

www.krisztinapalace.hu

BBJ_2509_special_report_.indd 27

15,600 29,000

15,500 18,000

Ÿ

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

Cushman&Wakefield Kft., www.cushmanwakefield.hu

✓

✓

✓

✓

✓

✓

1095 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 (1) 501-2801 office@caimmo.com 1138 Budapest, Váci út 193.

(1) 412-3680 (1) 412-3681 leasing@gtc.hu 1138 Budapest, Váci út 140.

(1) 268-1288 – info.budapest@ eur.cushwake.com

2017. 05. 09. 14:35

15,200

56

offiCe gaRden i

15,022 26,000

www.vacigreens.hu

www.officegarden.hu

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

✓

indepedent poWeR supply

biCyCle paRking

Waste ReCyCling

bank bRanCh/atm

Ÿ

in-house faCility management

Ÿ Ÿ

suitable foR disabled people

6 320

gReen enviRonment

110 5

24-houR ReCeption & seCuRity seRviCes

7

Wellness and spoRt seRviCes

13–13.50 800 HUF

RestauRant, Café

Ÿ Ÿ

no. of elevatoRs no. of paRking spaCes

7+3

300 5

General Electric (GE), GE Healthcare, Sykes International, Enterprise Communications, Atenor

leasing agent, name, Website

natuRal light and aiR ventilation

gReen teChnologies

seRviCes aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

55

váCi gReens d épület

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2017

CuRRent majoR tenants

no. of levels

Company Website

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

Special Report net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

28 | 3

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

1138 Budapest, Váci út 117-129.

(1) 785-5208 (1) 785-5209 info@atenor.hu

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu.

Robertson Hungary Kft., www.robertson.hu

✓

✓

✓

✓

City Tower Kft. (100) –

–

–

✓

✓

✓

–

Ÿ Ÿ

1117 Budapest, Alíz utca 1.

(1) 382-7020 – grtgroup@grtgroup.hu

–

(100) –

1052 Budapest, Szervita tér 8.

(1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

1139 Budapest, Váci út 99.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

szeRvita squaRe www.szervita.com

14,900 30,000

57

6

Ÿ 5

7 300

Ÿ Ÿ

8

1,500 3–5

4 439

12.50 3.50

Ÿ Ÿ

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

Unicef, GfK, Asus, Culevit, AddVal Kft., Hortonworks

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

lomb offiCe building www.cpigroup.hu

14,700 28,500

58

59

City toWeR

14,600 15,200

7

300 5

60

CentRál udvaR

13,900 24,000

–

287 3

9 215

11–13 3.80

61

lauRus offiCes

13,858 27,000

6–7

60 3

8 248

11 3.50

www.vacigreens.hu

www.centraludvar.com

www.laurusirodahazak.hu

Ÿ

Ÿ

✓

✓

–

–

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu

✓

✓

✓

✓

City Tower Kft. (100) –

1138 Budapest, Váci út 117-119.

(1) 785-5208 – info@atenor.hu

✓

–

AddVal Kft., www.addvalgroup.com

✓

✓

✓

–

SavillsIM Ingatlankezelési Kft. (100) –

–

CE Land Holding Kft., www.celand.hu

–

K1A Real Estate Management Kft. (Ÿ) IR CEE Project Development Holding GmbH (Ÿ)

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 (1) 479-6029 office@addvalgroup.com

✓

✓

✓

✓

✓

infopaRk g épület 62

63

www.diofaalapkezelo.hu

v188

www.eston.hu

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Magyar tudósok körútja 9.

(1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

✓

Ÿ Ÿ

1138 Budapest, Váci út 188.

(1) 877-1000 (1) 877-1001 office@eston.hu 1075 Budapest, Kéthly Anna tér 1.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

13,800 14,666

6

2,000 5

200

3.80

Ÿ

Magyar Telekom

✓

–

✓

✓

✓

✓

✓

–

✓

Ÿ ✓ ✓

13,637 14,175

6

492 3

7 252

9–11 1,160 HUF

Ÿ

✓

–

✓

✓

✓

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

Ÿ

✓

myhive gReenpoint 7 64

www.greenpoint7.hu, www.myhive-offices.com/hu

1103 Budapest, Kőér utca 2/A (1) 392-4075 (1) 392-4081 info@celand.hu

13,600 15,550

Underground+7

– 3

6 266

11.90 950 HUF

Ÿ

✓

–

✓

✓

✓

✓

–

CBRE

✓

✓

✓

✓

– IMMOFINANZ AG (100)

13,315 18,115

3-8-6

100 1

3 350

7.50-9 3.70-4

General Motors, Tesa Tape, Kaiser&Kraft, Kardex

✓

–

✓

✓

–

✓

–

Eston International, www.eston.hu

✓

✓

✓

–

– CPI Property Group (100)

2040 Budaörs, Szabadság út 117.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

13,200 20,400

8

1,600 3–5

7 239

12.50 3.80

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

– CPI Property Group (100)

1138 Budapest, Esztergomi út 44–48.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

13,000 19,800

9

– –

4 221

12.90 3.60

Samsung, Trigranit, EOS, Imhaus, CPI Property Group

✓

–

✓

–

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1132 Budapest, Váci út 30.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

budaöRs offiCe paRk www.budaorsofficepark.hu 65

neW age CenteR www.newagebc.hu 66

bC30

www.bc30.hu 67

BBJ_2509_special_report_.indd 28

2017. 05. 09. 14:35

www.bbj.hu

Special Report | 29

3

Budapest Business Journal | May 5 – May 18, 2017

gReen teChnologies

Rank

Company Website

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

no. of levels

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption & seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

indepedent poWeR supply

seRviCes

67

euRopolis paRk budapest aeRozone

13,000 65,000

4

120 3

6 260

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

Ÿ Ÿ

2220 Vecsés, Lőrinci út 59–61.

–

67

vÍziváRos offiCe CenteR

13,000 14,600

7

350 5

5 230

12.90–14 1,200 HUF

Leitner&Leitner, Svéd Nagykövetség

✓

–

✓

–

✓

✓

–

Cushman&Walefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– (100)

1027 Budapest, Kapás utca 6–12.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

70

ResidenCe 1 iRodaház

6

500 3

5 177

Ÿ Ÿ

–

– (100)

1027 Budapest, Kacsa utca 15–23.

(1) 346-6405 (1) 346-6448 julianna.marta@ raiffeisenevolution.com 1023 Budapest, Árpád fejedelem útja 26–28.

(1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

–

www.caimmo.hu

www.residenceirodahaz.hu

12,900 21,200

Ÿ

✓

–

✓

✓

✓

✓

70

✓

✓

✓

–

Torony Real Estate Investment Fund (100) –

www.infopark.hu

✓

6

200 5

5 265

10.99–13.20 1,190 HUF

L'Oréal, Regus, Orbico

✓

–

✓

✓

✓

✓

–

Robertson Hungary, www.robertson.hu, JLL, www.jll.hu

9

200 3

4 320

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

Strabag Property and Facility Services Zrt., www.strabag-pfs.hu

✓

✓

✓

–

– HGA Capital (100)

1117 Budapest, Infopark sétány 1.

(30) 787-0000 (30) 787-0000 leasing@strabag-pfs.hu

12,728 13,225

8

600 5

5 205

13.75–14.75 3.80

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

1082 Budapest, Bókay utca (1) 266-2181 (1) 688-5498 office@futureal.hu

Underground+8

500 3

6 280

12–14 4

Xapt, Qualysoft, Kürt, Capgemini, Adidas, Helly Hansen

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

(100) –

1118 Budapest, Rétköz utca 5.

(1) 309-0909 (1) 309-0900 info@budawest.net

12,900 13,942

infopaRk C épület 72

addRess phone fax email

–

✓

–

oWneRship (%) hungaRian non-hungaRian

–

óbuda gate

www.obudagate.hu

leasing agent, name, Website

12,800

Ÿ

73

CoRvin teChnology & sCienCe paRk 1. ütem

74

budaWest iRodaház www.budawest.net

12,680 27,000

75

Westend City CenteR offiCes

12,500 16,600

6

180 3

6 160

13–14 4.50

Ÿ

✓

–

✓

✓

✓

✓

✓

ESTON International Zrt., www.eston.hu

✓

–

✓

–

Ÿ Ÿ

1062 Budapest, Váci út 1–3.

(20) 369-1111 (1) 374-6571 lease@westendiroda.hu

76

infopaRk a épület www.caimmo.hu

12,200 13,600

5

100 3

6 375

11.50–12.75 1,200 HUF

IBM, Panasonic, Invitel

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– (100)

1117 Budapest, Neumann János utca 1.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

77

madáCh tRade CenteR

12,000 14,500

7–9–12

– 1

4 250

Ÿ Ÿ

Lilly Hungária Kft., Lakatos, Köves és Társai Zrt., Lengyel Allen&Overy Law Firm. Appello Kft.

–

– (100)

1075 Budapest, Madách Imre út 13–14.

(1) 268-1900 (1) 269-6684 info@madachtrade.hu

Ÿ

Cargill Magyarország Zrt., Tech Mahindra Magyarországi Fióktelepe, Otis Felvonó Kft., FrieslandCampina ✓ Service Centre EMEA Kft., Techwave, SPAR Magyarország, Café Frei

– Europa Capital (100)

1134 Budapest, Váci út 37.

(1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com

Ÿ Ÿ

1054 Budapest, Akadémia utca 6.

(1) 268-1288 (1) 268-1289 info.budapest@ eur.cushwake.com

www.futureal.hu

www.westendiroda.hu

www.madachtrade.hu

Cityzen offiCes

www.cityzenirodahaz.hu 11,736 12,581

78

79

akadémia business CenteR

www.cushmanwakefield.hu

11,700 13,500

9

8

250 5

105 5

6 151

5 142

3.90

Ÿ Ÿ

Ÿ

✓

✓

–

✓

–

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

–

–

✓

ConvergenCE, www. convergen-ce.com

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– (100)

1123 Budapest, Csörsz utca 45.

(1) 268-1288 (1) 268-1289 info.budapest@ eur.cushwake.com

✓

✓

✓

–

Wingprojekt 6 Kft. (100) –

1093 Budapest, Czuczor utca 2–10.

(1) 451-4280 (1) 451-4289 sales@wing.hu

–

Torony Ingatlanbefektetési Alap (100) –

1134 Budapest, Váci út 17.

(1) 888-4120 (1) 888-4289 alapkezelo@ diofaalapkezelo.hu

✓

(100) –

1134 Budapest, Váci út 43.

(1) 266-2181 (1) 688-5498 office@futureal.hu

80

mom paRk toWeRs

11,500 12,200

7

Ÿ Ÿ

9 230

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

81

studium iRodaház

10,676 36,000

7

575 5

6 408

13–13.90 1,290 HUF

Randstad, Plazmaszolgálat, Iron Mountain

✓

–

✓

✓

✓

✓

✓

ESTON International Zrt., www.eston.hu

11

170 5

6 209

14 1,242 HUF

7

500 5

3 213

13.75–14.75 3.80

www.cushmanwakefield.hu

www.wing.hu

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

v17 82

83

www.v17.hu

advanCe toWeR www.futureal.hu

BBJ_2509_special_report_.indd 29

10,600 18,000

10,365 11,361

Ÿ

Ÿ

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

✓

✓

✓

2017. 05. 09. 14:35

5

6 247

Ÿ Ÿ

K&H

✓

✓

✓

✓

8

120 3

4 133

13.50–14.50 3

Huawei, Bisnode, Sigma, OTP Mobil

✓

–

✓

9

300 3

3 145

10–12 750

Ÿ

–

–

✓

9,400 14,450

10

– 3

2 170

10.90 1,260 HUF

Starschema, Brendon, Interticket, Greenpass, Mall.hu, AdviseSoft

9,393 12,158

Underground+8

– 3

4 208

10.50 890 HUF

Ÿ

✓

–

✓

✓

✓

9,386 10,665

5

600 5

5 185

9.50–10.50 1,300 HUF

Unilever, UFB, Novodata

✓

✓

✓

✓

✓

10,000 12,300

RiveRpaRk iRodák

9,865

86

87

www.riverpark.hu, www.gamma-am.hu

dévai iRodaház www.eston.hu

Ÿ

9,665 11,700

indepedent poWeR supply

Ÿ

millennium toWeR "h" épület

biCyCle paRking

8

85

Waste ReCyCling

✓

leasing agent, name, Website

natuRal light and aiR ventilation

–

bank bRanCh/atm

✓

in-house faCility management

–

www.vaciutcacenter.hu

suitable foR disabled people

✓

84

gReen enviRonment

ACNielsen Kft., PORR Kft., Etalon-Informatika Kft., ITL Group Kft., TOPdesk Kft.

24-houR ReCeption & seCuRity seRviCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm) 11.50–12.5 4.30

Wellness and spoRt seRviCes

no. of elevatoRs no. of paRking spaCes 6 133

10,245 21,100

RestauRant, Café

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

10

72 3

váCi utCa CenteR

gReen teChnologies

seRviCes

CuRRent majoR tenants

Company Website

www.caimmo.hu

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2017

no. of levels

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Special Report

Rank

30 | 3

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

1056 Budapest, Váci utca 81.

(1) 411-0442 (1) 235-0007 vaciutca@ vaciutcacenter.hu 1095 Budapest, Lechner Ödön fasor 9.

(1) 501-2800 (1) 501-2801 office@caimmo.hu 1093 Budapest, Közraktár utca 30–32.

(1) 382-7560 (1) 382-7570 office@gamma-am.hu 1134 Budapest, Dévai utca 26–28.

(1) 877-1000 (1) 877-1001 info@eston.hu

✓

Váci utca Center Kft., ✓ ✓ www.vaciutcacenter.hu

✓

✓

–

Váci utca Center Kft. (100) –

✓

✓

✓

–

✓

✓

✓

–

– (100)

✓

✓

✓

–

GAMMA Properties Kft., Robertson

✓

✓

✓

✓

– TRIUVA (100)

✓

–

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

–

Cushman&Wakefield, www. cushmanwakefield.hu, Eston International, www.eston.hu

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

✓

✓

Cushman&Wakefield, www. cushmanwakefield.hu

✓

✓

✓

–

– IMMOFINANZ AG (100)

1027 Budapest, Horvát utca 14–24.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

✓

–

Colliers International, www.colliers.hu

✓

✓

✓

✓

– (100)

1138 Budapest, Váci út 182.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

✓

Robertson Hungary, www.robertson.hu, Cushman& Wakefield Kft., www. cushmanwakefield.hu

✓

– (100)

1054 Budapest, Bajcsy-Zsilinszky út 42–46.

(1) 382-5100 (1) 382-5101 info@ whitestar-realestate.hu

✓

ConvergenCE, www.convergen-ce. com

–

– Bluehouse (100)

2040 Budaörs, Puskás Tivadar utca 4.

(1) 225-0912 (1) 375-0445 office@convergen-ce.com

1037 Budapest, Szépvölgyi út 35–37.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

balanCe building www.balancebuilding.hu 88

CentRal business CenteR 89

www.immofinanz.com

✓

–

✓

✓

✓

✓

✓

✓

✓

blue Cube

www.simmoag.hu 90

91

atRinova

www.atrinova.hu

9,240 14,824

7

650 5

3+1 107

14 4.83

KDB Bank, Agrár-Vállalkozási Hitelgarancia Alapítvány

3

20 1

5 199

7.50–9.50 3.50

Roche, Continental Hungaria Kft., Johnson Diversey

✓

–

✓

–

✓

✓

✓

✓

✓

teRRapaRk next a www.terraparknext.com

9,174 9,907

92

szépvölgyi business paRk 93

94

www.immofinanz.com

momentum offiCes www.colliers.com/hu-hu/ hungary/properties/p-/ momentum-irodaház

95

96

✓

✓

–

–

✓

✓

✓

–

15–17 3.20

Ÿ

–

–

✓

✓

✓

✓

–

Colliers International, www.colliers.hu

✓

–

✓

–

Csörsz utca Ingatlanfejlesztő Kft. (100) –

14–15 1,300 HUF

Tumlare, AFP, Associated Press, Itochu, Jetro, Sopron Bank, Belgian Embassy Walloon Region, HUMAN Bioplazma, Samsonite, Reed

1124 Budapest, Csörsz utca 49-51.

(1) 336-4200 (1) 336-4201 angela.jojart@colliers.com

✓

✓

✓

✓

✓

✓

✓

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

✓

✓

✓

– (100)

1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

✓

ConvergenCE, www.convergen-ce. com

✓

– Europa Capital (100)

1085 Budapest, Kálvin tér 12.

(1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com

–

– IMMOFINANZ AG (100)

1095 Budapest, Gubacsi út 6/B (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

7

400 5

4 142

8,330 12,158

✓

✓

8,700 11,000

8,448 9,139

✓

✓

11.50 1,200 HUF

kálvin squaRe

www.kalvinsquare.hu

✓

✓

8 280

4 100

✓

–

– 3

50 5

✓

✓

Underground+4

8

✓

Ÿ

8,900 10,300

8,682 9,286

✓

– IMMOFINANZ AG (100)

City CenteR

www.simmoag.hu

✓

9

300 5

4 116

3.90

Underground+3

190 3

6 349

9.90–10.90 898 HUF

Ÿ

Philip Morris, Aegon Hungary, Faludi Wolf Theiss Ügyvédi Iroda, GEOX, Alpiq Energia, Texas Instruments, SafeGuard, Kelly Services, Forestay Group, ExpedIT Kft., DBK Kft.

✓

–

✓

✓

✓

✓

✓

✓

✓

offiCe Campus 97

www.immofinanz.com, www.iroda.immofinanz.com

BBJ_2509_special_report_.indd 30

Ÿ

–

–

✓

✓

✓

✓

–

Robertson, CBRE

✓

✓

✓

2017. 05. 09. 14:35

www.bbj.hu

infopaRk b épület 98

99

www.infopark.hu

ybl palota iRodaház www.yblpalota.hu

kinnaRps house 100

www.jarl-konferenciakozpont.hu

8,045 8,617

8,009 12,000

Ÿ

✓

CMS Cameron McKenna LLP Hungarian subsidiary, Oppenheim Law Firm, Grafton Recruitment ✓ Kft., Magyar Pénzváltó Kft., Openhouse Budapest Ingatlaniroda, Lohn Law Firm

–

✓

✓

✓

✓

✓

STRABAG Property and Facility Services Zrt., www.strabag-pfs.hu

–

Vass Szilvia, Y.B.L. Lindner Kft, www.yblpalota.hu

✓

✓

✓

indepedent poWeR supply

biCyCle paRking

leasing agent, name, Website

Waste ReCyCling

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption & seCuRity seRviCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm) 11-13.50 3.20

Wellness and spoRt seRviCes

no. of elevatoRs no. of paRking spaCes 3 130

RestauRant, Café

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

7

220 3

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

no. of levels

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

Company Website

Special Report | 31

3

Budapest Business Journal | May 5 – May 18, 2017

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

–

– HGA Capital (100)

1117 Budapest, Infopark sétány 3.

(30) 787-0000 (1) 210-0095 leasing@strabag-pfs.hu

–

Y.B.L. Lindner Kft. (100) –

1053 Budapest, Károlyi utca 12.

(1) 411-0434 – szvass@t-online.hu

–

– Kinnarps I Falköping AB (100)

1133 Budapest, Váci út 92.

(1) 237-1251 (1) 237-1250 recepcio@kinnarps.hu 1082 Budapest, Üllői út 48.

(1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

5

130 3

4 56

12.45 4.20

8

Ÿ Ÿ

4 108

– –

7,648 8,145

6

127 5

5 126

12–13.50 3.60

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Diófa Real Estate Investment Fund (100) –

7,326 8,636

6

– 5

5 161

– –

LogMeIn, Armani, Silka

–

–

✓

–

✓

✓

–

CPI Hungary Kft., www.cpigroup.hu

✓

✓

–

–

– CPI Property Group (100)

1061 Budapest, Andrássy út 9.

(1) 429-4042 (1) 429-4041 hungary@cpipg.com

7,288 8,387

3

150 3

5 151

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

–

✓

✓

–

✓

–

✓

–

Raiffeisen Ingatlan Alap (100) –

2040 Budaörs, Puskás Tivadar út 7-11.

(1) 477-8490 (1) 477-8499 irodaberlet@raiffeisen.hu

7

20 3

3 100

11-14.50 3.90

Ÿ

✓

STRABAG Property and Facility Services Zrt., www.strabag-pfs.hu

–

– HGA Capital (100)

1117 Budapest, Infopark sétány 1.

(30) 787-0000 (1) 210-0095 leasing@strabag-pfs.hu

Walt Disney, Omnicom MediaGroup, OMD, PHD Hungary, Towa Budapest Reklámügynökség, Heineken, Café Frei

–

Robertson Hungary, www.robertson.hu

–

– (100)

1068 Budapest, Dózsa György út 84/A (1) 327-2050 (1) 327-2055 office@robertson.hu

–

– IMMOFINANZ AG (100)

1139 Budapest, Pap Károly utca 4–6.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

– HGA Capital (100)

1062 Budapest, Aradi utca 8–10.

(30) 922-0081 (1) 210-0095 borbala.farago@ strabag-pfs.hu

–

SavillsIM Immobilia Kft. (100) –

1065 Budapest, Nagymező utca 46–48.

(1) 479-6020 (1) 479-6020 office@addvalgroup.com

–

– CPI Property Group (100)

1139 Budapest, Váci út 91.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

–

– (100)

1122 Budapest, Maros utca 19–21.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

7,947 9,018

Kinnarps Hungary Kft., Rail Cargo Hungaria Zrt., Joe-Falat Kft.

✓

–

–

✓

✓

–

✓

✓

✓

✓

✓

–

–

✓

✓

✓

✓

✓

✓

ü48 iRodaház

www.diofaalapkezelo.hu 101

andRássy palaCe www.andrassypalota.hu 102

teRRapaRk budaöRs

103 (d5-8, d tömbök) www.raiffeisenirodak.hu/ ingatlan/terrapark

infopaRk i épület 104

www.infopark.hu

liget CenteR 105

www.ligetcenter.hu

7,285 8,361

7,170 11,200

6,900 9,200

5

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Underground+7

336 3

3 216

10.70 1,170 HUF

✓

–

–

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

–

✓

✓

myhive13 - xenteR 13 106

www.immofinanz.com, www.iroda.immofinanz.com, www.myhive-offices.com/hu

Ÿ

✓

–

✓

✓

✓

✓

–

JLL

–

STRABAG Property and Facility Services Zrt., www.strabag-pfs.hu

–

AddVal Kft., www.addvalgroup.com

oktogon ház 107

www.oktogonhaz.hu

CoRneR6 business 108 CenteR www.addvalgroup.com

6,809 7,281

6,698

Ÿ

7

150 3

4 339

11.50-13.50 3.50

7

584 5

3 105

12-13.50 3.80

Ÿ

5

250 3

2 75

9 3.50

Mattel, KOM Zrt., IQSoft, Atrium Productions Kft., HTNS, Idealbody

8

150 5

4 69

12.50–13.50 1,200 HUF

Oktatási Hivatal, Lensa, ANPAST Europroject

Ÿ

–

✓

✓

–

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

bC91

wwww.bc91.hu 6,600 9,000

109

maRos utCa business CenteR 110

www.simmoag.hu

BBJ_2509_special_report_.indd 31

6,534 7,166

✓

–

–

–

✓

✓

–

✓

✓

✓

✓

✓

–

–

–

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

✓

✓

✓

✓

✓

2017. 05. 09. 14:35

Special Report

gReen teChnologies

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption & seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

indepedent poWeR supply

seRviCes

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2017

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

32 | 3

6,500 7,325

3

350 3

2 80

12.90 3.50

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

6,163 7,212

5+1

Ÿ

4 72

Ÿ Ÿ

Immigration and Citizenship Office

–

–

✓

–

✓

✓

–

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

✓

✓

–

– (100)

1135 Budapest, Szegedi út 35.

(1) 429-5050 (1) 429-5055 –

9–11 950 HUF

Omixon Biocomputing Kft., Inventshure Kft., Imhaus Magyarország Bt.

Erste Ingatlan Alap (100) –

1117 Budapest, Fehérvári út 50–52.

(1) 920-2161 (1) 920-2199 antal.garamvari@ erstealapkezelo.hu

9–12 3.65

Dom-P Informatikai Szolgáltató Zrt., Ad Novum

–

–

✓

–

✓

✓

–

–

✓

✓

✓

–

Magyar Posta Takarék Real Estate Investment Fund (100) –

1027 Budapest, Kapás utca 11–15.

(1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

12–14 1,200 HUF

Unicredit Bank, Geometry, Global Code Cool, Black Swan, Egon Zehnder, Team Red, Magyar Államkincstár

–

–

✓

–

✓

✓

✓

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

✓

✓

–

– (100)

1065 Budapest, Nagymező utca 44.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

Ÿ Ÿ

H&M, Hard Rock Café Budapest, Szamos Gourmet, DVM group, St. Andrea Wine & Sky Bar, Play'n Go, Mastercard, Ostermann

–

Ÿ Ÿ

1052 Budapest, Deák Ferenc utca 3–5.

(1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

–

–

✓

✓

✓

1016 Budapest, Hegyalja út 7–13.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

–

✓

✓

–

✓

✓

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

balanCe loft

www.balanceloft.hu 111

tWin offiCe CenteR www.simmoag.hu 112

113

dexagon iRodaház www.erstealapkezelo.hu

buda business CenteR 114

www.diofaalapkezelo.hu

6,029

Ÿ

6,000 6,500

6

7

3

Ÿ Ÿ

80 3

Ÿ Ÿ

3 167

pódium

www.simmoag.hu 115

5,722 5,890

9

350 5

2 87

váCi 1

www.vaci1.hu 5,700 13,800

116

6

400 5

11

Ÿ

buda CenteR

www.simmoag.hu 117

5,628 6,218

7

80 3

2 65

10–12 1,240 HUF

OASE, Mood Media, PR-Agent, Rewart, Dow AgroSciences, Rustler, Aktuál Bau, Radio Plus, ProMontel

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

✓

118

máRiássy modeRn

5,500 7,000

5

310 3

4 118

11 3.80

Ÿ

✓

118

ResidenCe 2 iRodaház

5,500 9,600

6

624 3

2 79

Ÿ Ÿ

Ÿ

✓

www.wing.hu

www.residenceirodahaz.hu

–

✓

–

–

Ÿ Ÿ Ÿ Ÿ

–

–

✓

–

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

✓

✓

–

– (100)

✓

✓

–

ESTON International Zrt., www.eston.hu

✓

–

✓

–

Máriássy Ház Kft. (100) –

✓

–

–

–

✓

✓

–

–

– (100)

–

– IMMOFINANZ AG (100)

1138 Budapest, Váci út 189-191.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

– IMMOFINANZ AG (100)

1036 Budapest, Kórház utca 6–12.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

✓

✓

✓

✓

✓

optima a 120

www.immofinanz.com, www.iroda.immofinanz.com

5,455 6,023

Underground+5

430 3

2 87

9–10 950 HUF

5,410 5,575

Underground+5

– 3

2 93

9.50 990 HUF

Ÿ

5,390 5,961

5

180 3

2 459

12 4.50

TRUMPF, NKH, Finn Wellness, Truck Force One

✓

–

✓

✓

✓

5,384 6,122

8

– 5

3 64

13.75 3.80

EPAM, Tiens

✓

✓

✓

✓

✓

Ÿ

–

–

✓

✓

✓

✓

–

Robertson

✓

✓

✓

globe 3 121

www.immofinanz.com; www.iroda.immofinanz.com

the quadRum 122

www.thequadrum.hu

123

CoRvin CoRneR www.futureal.hu

BBJ_2509_special_report_.indd 32

✓

–

✓

✓

✓

✓

C&W

✓

✓

White Star Real Estate Kft., www.whitestarrealestate.hu

✓

✓

✓

✓

– (100)

✓

✓

–

✓

✓

✓

✓

(100) –

✓

✓

✓

✓

1095 Budapest, Máriássy utca 7.

(1) 451-4280 (1) 451-4289 sales@wing.hu 1027 Budapest, Ganz utca 16.

(1) 346-6443 (1) 346-6448 krisztina.major@ raiffeisenevolution.com

2220 Vecsés, Lincoln út 1.

(1) 382-5100 (1) 382-5101 info@thequadrum.hu 1082 Budapest, Futó utca 31–33.

(1) 266-2181 (1) 688-5498 office@futureal.hu

2017. 05. 09. 14:35

www.bbj.hu

gReen teChnologies

no. of levels

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apRil 1, 2017 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2017 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption & seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

indepedent poWeR supply

seRviCes

net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

Company Website

Special Report | 33

3

Budapest Business Journal | May 5 – May 18, 2017

5,000 35,000

3

180 3

3 200

9 3.75

Benteler, Trilak, Kühne+Nagel, FedEx, Panalpina, CEVA, UPS

✓

–

✓

✓

✓

✓

–

CPI Hungary Kft., www.cpigroup.hu

✓

✓

✓

–

– CPI Property Group (100)

Ÿ

✓

–

✓

✓

–

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

Canadian embassy, Adnovum

–

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– (100)

Ÿ

–

–

✓

✓

✓

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

✓

✓

✓

–

– HGA Capital (100)

1061 Budapest, Andrássy út 12.

(30) 922-0081 (1) 210-0095 borbala.farago@ strabag-pfs.hu

✓

✓

–

✓

Woody Holding Kft. (100) –

1016 Budapest, Mészáros utca 13.

– office@woodyholding.com 1133 Budapest, Árboc utca 6.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

2200 Vecsés, Üllői út 807.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

aiRpoRt City logisztikai paRk www.airportcity.hu 124

125

mbC business CenteR

4,930 7,166

6

234 3

2 88

11–12 875 HUF

126

Canada squaRe

4,900 6,000

6

150 5

4 51

12.50–13.90

127

büRoCenteR West

4,826 6,900

4

100 3

2 66

10.50–12 875 HUF

4,802 5,639

5

240 3

2

Ÿ

12-14.50 3.20

Ÿ

–

–

✓

–

✓

✓

–

STRABAG Property and Facility Services Zrt., www.strabag-pfs.hu

4,800 8,500

5

158 5

2 93

14.50-16 999 HUF

Ÿ

–

–

–

✓

✓

✓

–

–

www.eston.hu

www.caimmo.hu

www.eston.hu

Ÿ

andRássy 12 128

www.andrassy-11-12.hu

eCodome

129 www.rockwoodholding.com/ ecodome

áRpád CenteR 130

www.immofinanz.com, iroda.immofinanz.com

4,700 5,373

Underground+6

270 3

3 72

9.50–10.50 HUF 95

Ÿ

✓

–

✓

✓

✓

✓

✓

JLL

✓

✓

✓

–

– IMMOFINANZ AG (100)

131

n97

3,625 4,500

4

136 2

2 80

8.50–10.50 4.50

Ÿ

–

–

✓

✓

–

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

132

panoRáma ház www.eston.hu

3,300 4,000

4

250 3

1 60

8.50–9.50 4

Ÿ

–

–

✓

–

–

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

133

ausztRia ház

3,218

8

105 3

2 40

8.80-9.50 4.20

TNS Hoffmann, FOX, Takenaka, Gemalto

✓

–

✓

–

–

✓

–

Addval Kft., www.addvalgroup. com

✓

✓

✓

–

– List Group (100)

10

130 3

2 29

10.50–12 980 HUF

Ÿ

–

–

✓

✓

✓

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

2,327 2,511

6

150 3

1 47

10.50–12.90 1,490 HUF

Ÿ

✓

✓

✓

✓

✓

✓

✓

ESTON International Zrt., www.eston.hu, Jones Lang LaSalle, www.jll.hu

✓

✓

✓

–

Ÿ Ÿ

136

2,258 2,600

3

100 3

– 70

7 3.50

SmartX Solutions, IT Ware, Ultinous, Brother

–

–

✓

✓

–

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

maRkó iRodák 9 137 www.mi9.hu

2,201 2,630

5

2,201 5

2 19

15.50-16 4

Ÿ

–

–

✓

–

✓

–

–

White Star Real Estate Kft., www.whitestarrealestate.hu

✓

–

✓

–

(100) –

andRássy 93

1,801

3

Ÿ 3

1 12

12.50–14.50 4

Ÿ

–

–

✓

✓

–

–

–

GAMMA Properties Kft.

✓

–

✓

–

Ÿ Ÿ

4

109 1

1 35

7.50–8.50 950 HUF

Ÿ

–

–

✓

–

–

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

7

240 1

Ÿ

2

12 4.30

Skyscanner

–

–

✓

–

–

–

✓

GAMMA Properties Kft.

–

–

✓

–

Ÿ Ÿ

www.eston.hu

www.addvalgroup.com

Westpoint business

134 CenteR www.eston.hu

mozsáR tRade 135 CenteR www.mozsartc.hu

Ÿ

3,015 3,500

budafoki business CenteR www.bc.hu

138 iRodaház www.gamma-am.hu

Ÿ

139

v175

www.eston.hu

1,500 7,500

140

k6 iRodaház

1,470

www.gamma-am.hu

BBJ_2509_special_report_.indd 33

Ÿ

1012 Budapest, Vérmező út 4.

(1) 877-1000 (1) 877-1001 info@eston.hu 1027 Budapest, Ganz utca 16.

(1) 501-2800 (1) 501-2801 office@caimmo.hu 1111 Budapest, Nagyszőlős utca 11–15.

(1) 877-1000 (1) 877-1001 info@eston.hu

1124 Budapest, Németvölgyi út 97.

(1) 877-1000 (1) 877-1001 office@eston.hu 1134 Budapest, Váci út 19.

(1) 877-1000 (1) 877-1001 office@eston.hu 1052 Budapest, Vármegye utca 3–5.

(1) 479-6020 (1) 479-6029 office@addvalgroup.com 1131 Budapest, Váci út 18.

(1) 877-1000 (1) 877-1001 info@eston.hu 1066 Budapest, Mozsár utca 16.

(1) 301-0186 (1) 301-0185 info@mozsartc.hu

1117 Budapest, Budafoki út 209.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

1051 Budapest, Markó utca 9.

(1) 382-5100 (1) 382-5101 info@ whitestar-realestate.hu 1062 Budapest, Andrássy út 93.

(1) 382-7560 (1) 382-7570 office@gamma-am.hu 1138 Budapest, Váci út 175.

(1) 451-4280 (1) 451-4289 sales@wing.hu 1052 Budapest, Károly körút 6.

(1) 382-7560 (1) 382-7570 office@gamma-am.hu

2017. 05. 09. 14:35

Special Report

34 | 3

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2017

FM Under Pressure to Develop as an Industry and cost effective maintenance programs, as well as integrated management information systems. An FM manager has to be well-versed in technical services in addition to financial, legal, energetic, environmental, social or other aspects of the operation of a commercial building.

Facilities Management (FM) is seen as an integral part of Property Management (PM) services as office center owners look to attain full occupancy of new buildings or reposition earlier generation assets to meet the ever more complex demands of tenants and staff.

However, there is no universal definition of FM and PM services and the activities of the two can often overlap.

Innovative Solutions

Aerial view of Nordic Light.

GARY J. MORRELL

As FM and PM activities become more professional and are outsourced to specialized companies, the industry is seen as needing to better embrace new technology to meet more complex and sustainable demands. Furthermore, the industry needs to recruit staff in a country where there is already a shortage of skilled labor throughout the real estate and construction industries.

The division lines between FM, PM and Asset Management (AM) can be blurred. “FM today is a complex service/activity, which contributes to maximizing the value of the property through professional technical and infrastructural services that are adjusted to the property’s life cycle,” says Tibor Gasser, partner at GAMMA Properties, which carries out PM and AM

services. “Customer-focused property management supports the property’s daily operation with owner-mentality and professional activities. The overall knowledge of related business, administrative and technical fields and their pro-active implementation are essential for the daily property operations,” he explains.

PM is seen as looking after the daily operation and maintaining the longterm profitability and therefore the value of a property. FM, meanwhile, coordinates space, infrastructure, people and organization. FM represents a wider range of activities than just business services; core areas also take in the daily operations of the property. This includes reception, security, gardening and on-site maintenance personnel. FM

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BBJ_2509_special_report_.indd 34

services are, in most cases, outsourced to specialized companies.

Dedicated Department Cushman & Wakefield has a policy of outsourcing daily FM maintenance activities, although it also has a dedicated FM department that oversees the FM role, monitoring the quality of services and out goings. The company is currently working on the Nordic Light, Váci Corner, Krisztina Palace and Deák Palace buildings.

János Szeifert, head of asset services at Cushman & Wakefield Hungary, argues that there is a huge potential in developers outsourcing their FM and PM activities, and the company is striving to expand its activities.

“What is needed is more intimate feedback of what the building is telling you. In this way, the larger outsourced FM companies are geared toward managing a building according to the feedback from the building management system. This can result in significant savings on, for example, energy,” comments Pál Baross, an experienced BREEAM assessor and director of the campus redevelopment office at the Central European University.

The Royal Institute of Chartered Surveyors (RICS) argues that the profession has an opportunity to “broaden its remit, upgrade its status and play a significant role in contributing to the organizational effectiveness and business success”. According to Dome Facility Services Group, there is a need to focus on environmentally conscious solutions

“If we want to continue with the FM industry growth we have had in recent years, then we must continue with new, innovative solutions, technology development and its implementation,” says László Vágó, CEO of Strabag PFS. However, in the face of these challenges, FM faces a critical labor shortage. “The sudden increased need for skilled labor in the building industry shows its effect in related fields as well and renders hiring skilled labor for FM companies more difficult,” says Gasser at GAMMA Properties. “To further exacerbate the situation, due to the stagnation in the last few years, skilled labor with higher education and language proficiency has moved abroad in the hope of finding better jobs, thus enticing them to come back requires higher wages. This must be accepted by both the property owners and tenants – in the end, they will bear these costs.”

Vágó also sees a shortage of skilled labor and says this needs to be managed as it could prevent growth. He argues that the industry must find the answer to two important questions: How can it show highly qualified experts that it is worth working in FM, and how can they cope with the popularity of green issues?

“In the past, FM has been seen as a Cinderella profession, which explains the problems in attracting and retaining new talent. As working practices evolve in the digital age. FM will need new skills,” RICS says.

FM is seen as essentially having two roles consisting of “facilities professionals” who make buildings work and “workplace professionals” who focus more directly on ensuring that the facilities serve the needs of the business and the workforce, according to RICS and the International Facility Management Association (IFMA) in a collaborative study called “Raising the Bar”.

A growing segment of the profession is focused on the impact that facilities have on work and the workforce and its relationship with the business. The study therefore concludes that FM needs to adopt technology more quickly and far more deeply. “It must move beyond using technology to monitor space utilization and energy consumption, to a focus on using technology, data, and analytics to underpin and enhance the workplace experience,” says the research.

2017. 05. 09. 14:35

www.bbj.hu

3

Budapest Business Journal | May 5 – May 18, 2017

Special Report | 35

Market Talk: Real Estate Office Renaissance Bringing new Challenges and Opportunities to FM We asked two of the leading experts in the field – Kinga Kurta, business development director of Dome Facility Services Group, and Tibor Ruzsinszki, FM branch manager at STRABAG Property and Facility Services Zrt. to give us their overview of the Facilities Management (FM) market in Budapest.

ROBIN MARSHALL

How would you describe the Facility Management market in Hungary today? How is the work you are doing changing, and what are the latest trends?

Kinga Kurta: Currently, the most significant change that has a major impact on our commissions is the development of the labor market. The raising of the minimum wage is one driver, especially concerning the provision of cleaning and security services. This is inevitably wiping out employment from the grey economy, forcing all companies to operate more transparently and hindering distortion of the competition.

Another factor is the shrinkage of the employee base, which results in higher fluctuations and reaches the level of the skilled blue-collar staff and, the white-collar staff: the professionals and engineers as well.

In Q1, we have received several FM tender invitations which are due to changes of property owners and also to the fact that the former service levels could not have been maintained at the same costs.

Tibor Ruzsinszki: Facility Management has perhaps never faced such serious challenges. Each FM player is being forced to restructure and reconsider its strategy by ever increasing labor staff shortages, the salary pressure arising from this, new technology challenges due to the construction of “green” houses, the development of smart buildings connected to industry 4.0 and the fast change of the regulatory environment. All that makes the full FM market develop and move fast in a quality direction. It is very true that if you don’t move fast enough, you will lag behind.

BBJ_2509_special_report_.indd 35

further enhances the already serious labor staff shortage. This is especially true for highly qualified managers and maintenance staff who are experienced and speak foreign languages. All new office buildings are built with “green” technology to meet market demands, which means experts in operational automation, building regulation, and new technology procedures are required. At the same time, the real estate renaissance is an opportunity for companies with expertise and high quality professional knowledge to increase their market share.

Tibor Ruzsinszki, FM branch manager at STRABAG Property and Facility Services Zrt.

Some problems that were rare and minor a few years ago have become central issues that may even block growth today: How can we find highly a qualified new labor force? How shall we educate the staff we have already?

What does “green” mean? How can I know all about the regulations of various international qualifications?

Can I use the opportunities of new technologies? All market players are trying to answer these questions, both individually and cooperating through the National Association of Facility Management and Building Operation Services (LEO). However, it is not enough to find a solution if the FM market can’t add the extra costs to the fees. Our partners must understand that a well-functioning and professionally excellent FM services sector is our common interest. We can see in many cases that operation is not important until a serious problem is found. With today’s technology developments, a heating problem could mean that the full building automation system must be re-programmed or hundreds of sensors must be checked to find out what may have caused the system to stop.

How tightly regulated is the FM market? Is this changing?

KK: On one hand, we have to admit that the FM market is not tightly regulated yet, considering its complexity, but on the other hand, there are many sub areas under this complex activity which are particularly overregulated, and which are not always harmonized. This requires a strict follow-up of the relevant legal changes, and not being thorough enough is a huge risk for all market players and might result in obligations not being met according to the effective regulations.

TR: A recent survey shows that more than 600 legal regulations must be obeyed in daily operations, therefore one could say this is a highly-regulated environment. You must see that more laws are approved as EU expectations get stricter and the explanation and

Kinga Kurta, business development director of Dome Facility Services Group.

implementation of such laws requires great professional expertise. Just to mention a few recent regulations: the employment of an energetics specialist, establishment and operation of an electric car charger, prevention of Legionnaires’ Disease.

How do changes in the market (currently landlord-led) influence your business? Are you able to charge more for services now we seem to be in a real estate renaissance?

KK: What we have seen is a tendency that those landlords who are aware of and adapting to the changes of both the labor and FM markets accept that FM fees need corrections, and negotiations for such corrections have not been turned down. Some clients take initiation of fee correction as a turning point and decide to launch an FM tender, which normally results in an upwards effect on prices. But we definitely cannot talk about the opportunity of charging more for services, as we need to introduce our clients to what is the justified volume of fee correction with verifiable transparent cost breakdowns.

TR: The office rental market that concentrates on Budapest mostly creates new orders in the premium operational branch, and this fact

What demand is there for Facility Management outside of Budapest?

How is this changing?

KK: The real estate and FM market for office buildings is concentrated mainly in Budapest; outside of Budapest there is a high demand for FM service provision in the retail, industrial/ logistic and bank portfolios. The demand for high and professional outsourced FM services is getting stronger within the industrial sector.

TR: The largest part of the FM market outside Budapest is provided by factories and production plants. Production automation and high quality technology solution implementation provides big challenges for FM market players. The often-mentioned lack of well-trained labor force is even more apparent here.

The situation is worse, because people on the local labor market with the given professional knowledge are also targeted by the same companies where the operator must fulfill its service!

In summary, we can say that we are going through a very innovative and exciting period. You can’t live from old solutions and ideas now. Company characteristics, such as “ability to adapt to changes fast”, the “full use of technology”, and “permanent learning ability”, have in a couple of years triumphed over such key values as “professional experience of decades”, “assurance of trustworthy processes that have worked for years” or “great international background”.

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2017. 05. 09. 14:35

36 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 5 – May 18, 2017

Facility management companies

1

2

www.strabag-pfs.hu

15,326

FutuRe Fm létesítménygaZdálkodási ZRt.

7,539

11,436

7,539

27

Ÿ

38

Ÿ

35

Ÿ

Ÿ

Bács-Kiskun County Municipality hospital, Budapest Airport, Szombathely prison, Vodafone Magyarország Zrt.

✓

✓

✓

✓

–

✓

–

–

–

www.future-fm.hu

✓

✓

✓

✓

–

–

✓

✓

–

✓

✓

✓

–

–

✓

–

–

–

–

2004 540

WING Zrt. (49) STRABAG Property and Facility Services GmbH (51)

–

1991

–

–

2008 111

István Jászberényi (64), Péter Medveczky (36) –

istván jászberényi István Ádám Dóra Papp

1139 Budapest, Pap Károly utca 4–6.

(1) 465-7050 (1) 465-7051 info@kraft-fm.hu

–

–

otHeR

oWneRsHip (%) HungaRian non-HungaRian

taking out insuRanCe poliCies

ColleCtion oF publiC utility Fees

ConstRuCtion management

House oRdeR pRepaRation

opeRation

Real estate development

maintenanCe

FinanCe management

–

Magyar Telekom Nyrt., WING Zrt., Mercedes-Benz, ELMŰ ÉMÁSZ, OBI, MÁV Zrt., National Bank of Hungary

yeaR establisHed no. oF Full-time employees on apRil 1, 2017

stRabag pRopeRty and FaCility seRviCes ZRt.

inFRastRuCtuRal seRviCes

majoR Clients in 2016

teCHniCal supeRvision

seRviCes

otHeR

logistiCal and tRade FaCilities (%)

industRial FaCilities (%)

oFFiCe buildings (%)

Company Website

poRtFolio net Revenue FRom FaCility management in 2016 (HuF mln)

total net Revenue in 2016 (HuF mln)

Rank

Ranked by total net revenue (HUF mln) in 2016

Ÿ

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

lászló vágó Gyula Jászai Gábor Landi

1095 Budapest, Máriássy utca 7.

(1) 210-0566 (1) 210-0095 info@strabag-pfs.hu

(100) –

Ferenc batári – –

1148 Budapest, Fogarasi út 5.

(1) 468-4080 (1) 468-4088 mail@future-fm.hu

3

kRaFt Fm ÜZemeltetési és sZolgáltató kFt.

3,419

2,023

27

16

14

43

GDF Suez Csoport, BNP Paribas Real Estate Zrt., Erste Ingatlan Kft., Audi Hungária Kft.

4

sZigma HungaRy ZRt.

1,790

1,474

5

75

–

20

AGC Glass Hungary Kft., U-Shin Europe Kft., Osi Food Solutions Hungary Kft., SICK Kft.

✓

✓

✓

✓

–

✓

–

–

–

–

–

1990 38

Kogen-Term Kkt. (100) –

istván jászberényi István Ádám Dóra Papp

1139 Budapest, Pap Károly utca 4-6.

(96) 512-771 – iroda@szigma.hu

–

Raiffeisen Ingatlanalap, CBRE, Európa Ingatlanbefektetési Alap, Eston International

✓

✓

–

✓

–

✓

–

✓

–

–

Energetics, fit-out, consulting

2003

B-SEVEN Befektető Kft. (Ÿ), Drexler & Co Holding Kft. (Ÿ) –

gábor décsi Zsolt Jurecska Kinga Kurta

1023 Budapest, Lajos utca 28–32.

(1) 423-0000 (1) 423-0001 info@domefsg.hu

1999 42

BÁV Zrt. (50), VIREX Kft. (50) –

balázs tóth Edina Váradi –

1027 Budapest, Csalogány utca 23.

(1) 325-2640 (1) 325-2644 arexfm@arexfm.hu

www.kraft-fm.hu

www.szigma.hu

dome FaCility seRviCes gRoup kFt. www.domefsg.hu

1,358

5

Ÿ

25

50

25

Ÿ

6

aRex Fm kFt.

787

Ÿ

14

66

20

–

Ÿ

✓

✓

–

✓

✓

✓

✓

✓

–

–

Investment organisation, valuation, energy certificate management

7

millenia létesítményüzemeltető zrt.

610

610

10

10

80

–

Blackstone, Dachser, CTP

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

1999 55

Tibor Balogh (100) –

szabolcs pataki György Osváth –

1112 Budapest, Brassó út 64.

(1) 248-3800 (1) 248-3809 center@millenia.eu

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

2001 20

AddVal Group Kft. (100) –

Hubert mühringer – Bereniké Csépke

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 (1) 479-6020 office@ addvalgroup.com

✓

✓

✓

✓

–

✓

–

–

–

–

–

2008 34

– Rustler Gruppe GmbH (100)

valentin langbein – –

1016 Budapest, Hegyalja út 7-13.

(1) 434-2690 (1) 434-2699 budapest@rustler.eu

–

2005 18

(100) –

ernő Nagy – –

1136 Budapest, Pannónia utca 11.

(1) 339-8569 (1) 238-0422 info@fakultasfm.hu

–

2012 30

Individuals (100) –

andrás sólyom Péter Farkasházi –

2000 Szentendre, Vasúti villasor 49/B (30) 721-8553 – office@smartfm.hu

–

1997

– TPG Real Estate (100)

árpád török Agnieszka Turowska Dániel Pazsitzky

1132 Budapest, Váci út 30.

(1) 456-6200 (1) 456-6201 info@trigranit.com

www.arexfm.hu

www.millenia.eu

addval kFt.

www.addvalgroup.com 8

9

RustleR kFt. www.rustler.hu

Fakultás Fm létesítménygaZdálkodási NR kFt.

532

138

60

–

40

–

Savills Fund Management, List Group, IHG, Goodman

484

Ÿ

90

–

10

–

GTC Magyarország, List Group, Erste Immorent, S Immo APM Hungary

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

–

✓

✓

✓

–

–

Ÿ

Ÿ

60

14

26

–

Ÿ

✓

✓

✓

✓

–

✓

Ÿ

Ÿ

64

–

36

–

Auchan, ING Bank, Euroclear, AT&T, State Street, Lufthansa

–

–

–

–

✓

✓

Ÿ

–

–

–

–

www.fakultasfm.hu

NR

smaRtFm INgatlaNüzemeltető kFt.

Ÿ Ÿ Ÿ Ÿ

www.smartfm.hu

tRigRanit NR

www.trigranit.com

Ÿ= would not disclose, NR = not ranked, NA = not applicable

BBJ_2509_special_report_.indd 36

–

✓

–

–

Ÿ

This list was compiled from responses to questionnaires received by May 3, 2017 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu.

2017. 05. 09. 14:35

4

www.bbj.hu

Socialite

Budapest Business Journal | May 5 – May 18, 2017

An Afternoon in the Land of Angels

David Holzer finds himself pondering the pros and cons of hipsterization while in search of coffee (and somewhere open) in District XIII. DAVID HOLZER

The women’s fashion shop on Polsonyi utca in District XIII was so small it didn’t have a changing room. After I was shooed outside, I sat in front of the freshlypainted Pagony children’s bookshop and waited for my partner.

Polsonyi utca seems to be changing from satisfyingly down at heel to a somewhat hipsterized neighborhood.

I’m ambivalent about hipsterization.

I don’t like seeing what were once real signifiers of outsiderness – tattoos, especially – become so commonplace they lose any kind of potency. Biblical beard culture baffles me. I find it sad that “vibrant, edgy” up-and-coming parts of every city in the world all look exactly the same.

Still, when a neighborhood is hipsterized, you can at least get a good cup of coffee.

The Calgary bar at Frankel Leó utca 24, just across the Margit híd, was closed even though it was 4:30 p.m. and the place was supposed to

OPEN AT

4.

This was the third time I’d tried to get inside what I’d been told was an extraordinary bar. As we peered through the door, under the security gate, a large dog inside barked at us. A sharpfeatured lady of a certain age appeared out of the gloom. She told us to come back in half an hour.

With time to kill, I led my partner to the Bem Mozi at Margit körút 5, a funkylooking bar which may or may not be attached to a working cinema. It had intrigued me ever since I first saw it. A rock and roll band of skinny children had just finished sound checking and a redhaired girl in a silver leather jacket was lecturing them. But the bar was closed.

Volcanic coffee at the Barako In need of coffee by now, we wandered down Török utca and took a chance on the Barako. If you’re a coffee aficionado, or just want a good brew, head for Barako. Owned

by Ryan Andres, a Filipino raised in the USA – including Seattle, home of grunge – Barako is a tiny café much-loved by locals.

BBJ_2509_socialite.indd 37

Ryan Andres, the owner of Barako, talks Filipino coffee.

Andres opened Barako three years ago after some time spent working in finance in the United States and the Philippines.

Born into a family that’s been growing coffee beans since 1948, Ryan decided that his mission in life, at least for now, is to introduce the rest of the world to the delights of Filipino coffee.

Knowing that he needed to be in Europe, Ryan researched Prague, Bratislava, Vienna and Budapest. “Budapest had an emerging coffee scene I could fit into without people thinking I was copying anyone,” Andres told us.

Barako took off when it was reviewed by social media influencer László Szili.

“He came into the shop, loved the coffee, and said I’ll do an article about Barako.

This appeared that afternoon and people started coming in an hour later. Next morning at 6:45 a.m. there was a queue waiting for me to open.”

Today, almost all of Barako’s business comes from Hungarians. Although when our friends dropped in on our recommendation they sat next to an English family who make a point of coming for the delicious hot chocolate.

There’s nothing quite like Andres’ coffee in Budapest. This is not hype. Barako, the variety he serves, is extremely rare but native to the Philippines.

Barako has also come to be used to describe a macho male. We got the impression people went to the Barako partly because Andres is such a warm, welcoming guy. He told us he likes Hungarian people very much and feels comfortable in Budapest.

He made my partner a Brain Freeze – double shot of Barako, milk and caramel over ice – and me a Black Eye –

18

GRAMS

of brewed coffee and two shots of espresso.

As we sipped them he told us his story and showed us photos of the family coffee plantation. This overlooks Taal, the world’s smallest active volcano.

After we said our goodbyes, we almost

“Viki Szabó, who founded the Calgary, was a glamorous model, dancer and actress. Today, she still has cheekbones you could slice lemons with, piercing eyes and a magnetic presence. Her mode of dressing, which on this day included a canary yellow shirt, is eccentric but stylish.” ran around the corner to the Calgary.

Andresʼ delicious coffee is the most purely energizing I’ve ever tasted.

Inside the Calgary The Calgary is like no bar I’ve been in my life. It’s about as Bohemian as you can get and then some and absolutely wonderful.

So, it’s not surprising the Calgary’s been a favorite haunt of Budapest’s artists and intellectuals since it opened around 25 years ago.

Viki Szabó, who founded the Calgary, was a glamorous model, dancer and actress. Today, she still has cheekbones you could slice lemons with, piercing eyes and a magnetic presence. Her mode of dressing, which on this day included a canary yellow shirt, is eccentric but stylish.

The bar is crammed with an insane jumble of bric-a-brac including photos from Viki’s modelling career, furniture and heaps of musty clothes. Apparently, the Danube had leaked into the basement not long before, which added to the aroma of damp.

I asked how the Calgary got its name.

With my partner translating, Viki explained that a friend had moved to Calgary in Canada. He fell in love with the place, especially its trees and sent photos of the place to her. When Viki first had the idea for the bar she noticed the trees on Frankel Leó utca and thought of Calgary.

She decided to name the bar after the city.

All the lights in the Calgary went out when I was in the tiny basement bathroom. I was chuckling as I groped my way up the stairs, my hands touching damp sheets.

When the lights came back on we discovered we’d been joined by a strange young Transylvanian guy whose few remaining teeth were rotting and brown.

He claimed to know the Whisky Robber, Attila Ambrus, who once robbed a bank not far from the Calgary.

If you don’t already know, the Whisky Robber was a professional Hungarian ice hockey player who carried out a series of “gentleman robberies” in the 1990s. His story was made into the excellent book, Ballad of the Whiskey Robber (2004) by Julian Rubinstein, which gives a rare insight into Budapest back then. Johnny Depp owns the movie rights.

Elvis and the Land of Angels As we left the Calgary, I noticed a faded photo of Elvis. Apparently, Viki adores him. It was fitting, then, that we strolled back to Margit híd via Elvis Presley Park, just up from the Danube.

In 1957, Elvis performed the gospel song Peace in the Valley on the Ed Sullivan show as a tribute to the Hungarian people after the October 1956 revolution against the Soviets had been crushed. At Elvis’s request, Sullivan asked his TV audience to donate and help Hungary. This raised around CHF 25 million.

A day or so after we strolled from Polsonyi utca across the bridge to the other side I was told that this area is known as Angyalföld, which literally means Land of Angels. Elvis was certainly an unlikely angel for the people of Hungary.

Maybe it’s the time we spent in the Calgary, also known as the Fairy Bar. Perhaps it was the effects of the Barako coffee. Whatever the reason, as we strolled back over Margit híd as the sun was setting, we knew we’d had a most enchanted afternoon.

The Calgary is technically open from 4 p.m. but Ryan Andres told us the best time to go is around 3 a.m. Seriously.

Find out more about the fantastic Barako at www.barakokavehaz.com.

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Budapest Business Journal | May 5 – May 18, 2017

Eger ups the Elegance, Gets Ready to Picnic

Three exciting and dynamic Eger producers whose wines encompass a broad range of the best Eger has to offer are opening up their vineyards for the Eger Spring Wine Picnic on May 13. Here’s a sneak preview.

Here, in the heart of the Nyilasmar vineyard, you can chillax on comfy armchairs made out of used barrels and dine on delectable dishes from Nosvaj’s Nomád Hotel.

ROB SMYTH

The Eger wine region, located in the relatively cool climes of northeast Hungary, is oenophilically very well endowed and can swing both ways with equally exciting results in terms of making both white and red wine.

Three exciting and dynamic producers whose wines encompass a broad range of the best Eger has to offer are opening up their doors and vineyards for the Tavaszi Egri Borpiknik (Eger Spring Wine Picnic) on May 13.

Here’s a sneak preview about what’s hot at the three wineries, based on a pre-picnic reconnaissance mission.

The full program will include live music, food from the region’s gastronomic heavyweights and, naturally, lots of wine.

Arriving at the internationally renowned St. Andrea Winery, we were greeted with a traditional method sparkling wine from the

2014 vintage

which further showed the region’s versatility. It had some of those yeasty and biscuit notes many of us often seek in a sparkling wine made in this way, whereby the second fermentation occurs in the bottle with long interaction with the yeasty lees taking place. It also had nice stone (especially peach) and citrus fruit notes to enhance the flavor profile.

Kadarka is coming on leaps and

Make the most of the wine and at the views at the Eger picnic

bounds. This tricky to cultivate grape once dominated Eger plantings, but almost completely disappeared after the devastation caused by the phylloxera louse in the late 19th century, and later find itself firmly out favor with the communist guard.

It is very much Eger’s missing link, however, and a few percent of this aromatic grape provides an extra dimension to the Bikavér (Bull’s Blood) blend, one that the southern region of Szekszárd has long had at its disposal. In cooler Eger, it comes with the added bonus of zestier acidity that further fleshes out the flavors.

Straight From the Barrel

In the cellar and straight from the barrel, the über-talented and receptive St. Andrea winemaker György Lőrincz Sr. poured us his Nagy-Eged hegy Kadarka 2016, which comes from Nagy Eged Hill, overlooking the town of Eger, prized for its limestone in what is otherwise a sea of volcanic rhyolite tuff and brown forest soils. This was quite

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Venue: Saint Peter and Paul Parish Church and Óbudai Társaskör

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stunning, with a pronounced but pure and elegant mix of potpourri, pepper, strawberry and raspberry on the nose and palate. It also had a nice purple color, as well as lots of body and a nice bit of tannin for the usually feather-light Kadarka. While Kadarka is often – and somewhat curiously – dubbed the “Hungarian Pinot Noir”, this one is at least worthy of being placed on the same table.

Elegant and Pure

The Pinot Noir Nagy-Eged-Hegy 2014 is supremely elegant and pure, with anise and rose hip aromas, vibrant tongue-tingling acidity and fine-grained tannins leading to a very long finish with a complex graphite touch. It costs a steep HUF 19,900 from the cellar but only 630 bottles were ever made of it. Despite the extremely challenging cool and damp 2014 vintage, this is clean as a whistle and varietally pure.

Meanwhile, Lőrincz Sr. (whose son is now also actively involved in the winemaking, having put in several stints abroad to earn his stripes) intends to keep his Kékfrankos as the backbone of Bikavér and feels it offers more in a blend than as a single varietal offering. Incidentally, he will host a white wine masterclass as part of the Tavaszi Egri Borpiknik.

Concentrated and classy Kadarka features prominently at AlmagyarÉrseki Szölőbirtok (AÉS), which has a stunningly situated wine terrace, replete with a camping site on Almagyar Hill that looks out to the aforementioned and majestic Nagy-Eged Hill, and is the next port of call for the Borpiknik. This is a fascinating project whereby Ferenc Csutorás (Csuti), psychiatrist Imre Csernus, and Péter Mészáros, have joined forces to save the hill, the former vineyard of the Cardinal of Eger. It is on Almagyar that the trio found a mystery grape with robust tannins and good ageing potential,

which makes what is labelled as Titokbor (Secret Wine). The 2013 is a tad restrained on the nose but saves lots of spicy action for the flavorsome palate.

The Kovács Nimród winery has 10 hectares on Nagy-Eged Hill, although its leg of the picnic will take in the scenic Nyilasmar vineyard in Nosvaj. Kovács Nimród Chardonnay has long been among the country’s best and gets more elegant and less oak-like with each passing vintage.

Here, in the heart of the Nyilasmar vineyard, you can chillax on comfy armchairs made out of used barrels and dine on delectable dishes from Nosvaj’s Nomád Hotel. Look out for the curd cheese and rhubarb cake.

Note that Eger’s famed Macok Bisztró will be serving up at St. Andrea.

Tickets, which include transport and a couple of samples of wine at each destination, cost HUF 3,500 per adult, with discounts and cordials for kids. For more details and to register for one of the bus tour options, go to its Facebook events page.

Two wines to look out for:

St. Andrea Panagia Egri Csillag Grand Superior 2015

A white blend of Hárslevelű (43%), Sauvignon Blanc (32%), Chardonnay 20%, Pinot Gris (3%) and Furmint (2%) from brown forest soil with clay and rhyolite tuff. Tropical and citrus notes with a hint of honey on the nose, followed by a ripe, round and very long palate with a reassuringly dry finish. It nails the hard to capture balance between freshness and depth, while the expertly integrated oak subtly adds to the body and concentration without cutting out the fruit.

HUF 4,200 from the cellar.

Kovács Nimród Soul (Syrah) 2013 100% Syrah harvested on September 24 from Nosvaj’s Nyilasmar and Nagyfai vineyards. Eighty percent of it was aged for 18 months in Hungarian and French barrique barrels, while the other 20% went into larger “ászok” barrels. It has Impressive varietal character with intense black fruit and rich tannins.

Earthy and expressive.

HUF 5,450 from the cellar.

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The Best Thing About Paying Taxes

It has been 20 years since a generous Hungarian initiative was first put into effect: Those who pay their taxes in Hungary are entitled to allocate 1% to a charitable cause, at no extra cost to themselves. Hundreds of nonprofit organizations operate in Hungary thanks to this resource. Yet, last year, almost HUF 4 billion of the 1% donations were not assigned to any such cause.

CHRISTIAN KESZTHELYI

While more than three million people in Hungary declared their own taxes in 2016, many did not do so, leaving it to the National Tax and Customs Administration (NAV) to do it for them. In these situations, the declaration of the 1% needs to be issued to NAV electronically or by post.

The issue here is that many people simply cannot be bothered to do so. According to a recent survey, 78% of those who declared their own taxes gave the allocated 1% to a good cause, while only 23% of those who let NAV complete their taxes did so.

The most basic income source for civic organizations in Hungary is that 1%, and thus many good causes can be served due to this practice.

Furthermore, there are no additional costs to the taxpayers in this process, as it assigns already-paid taxes to a civil organization.

“This year it is very important to pay special attention to this, especially if NAV prepares the necessary documentation for us,” Ervin Vadász, the CEO of Bátor Tábor foundation, tells the

Budapest Business Journal. “We are responsible for that 1%, more than at any time earlier. I encourage everybody to live up to their rights, and also remind their colleagues and acquaintances.

Let’s direct the attention of our environment to the gravity of the cause, as with minimal effort we can help many good and important initiatives. Each and every 1% donation counts. We at Bátor Tábor can cover the health expenditures of one camper in one term through the average 1% donation,” adds Vadász.

Camp of Courage

Bátor Tábor, which in English translates to “Camp of Courage”, helps to guide children with cancer or chronic illnesses towards a more trouble-free childhood by giving them hope and happiness.

Annually, the organization provides 1,000 lifechanging experiences to children, proven tools to help assist in the healing process of lifethreatening diseases. For no price at all, children are able to believe that, above the clouds, the sun is always shining.

7+1 Reasons to Support Bátor Tábor and What it Does for Children 1. Gap-filling activities: while doctors heal the body, Bátor Tábor heals the soul. They guide campers back to life.

2. All the events and programs are for free of charge for the needy.

3. Efficient operations: Out of an average 1% donation, one camper’s health expenditures are covered for one term. The foundation’s tax number is: 18107913-1-41 4. Transparency and independence: The foundation has a three-year plan. Its finances are audited by Deloitte. No political, national, ethnic or gender identity interests influence its operations.

5. Trust is highly valued: The professionalism of the foundation is overseen by the Serious Fun Children’s Network and the International Camping Evaluation.

6. Supporting the foundation is a social investment: Approximately 1,000 campers and 1,000 volunteers practice responsible and caring mindsets when inside and outside the camp. Thus, it creates value outside the framework of Bátor Tábor too.

7. Measurable results: Healing improves, a more positive self-image is created and social connections are boosted leading to beneficial effects. Results

by Bátor Tábor are proven by research conducted together with Yale University. +1. “Bátor Tábor is a life-saving and electrifying happiness camp that has the power of changing everything,” says a camper.

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