Office
The office market faces challenges regarding financing, demand, pre-leasing requirements, tenant specification, staff requirements, and, not least, working habits for the post-pandemic era. Although most pipeline projects will go ahead, a fall in new speculative project development is expected.
“Office developers must adjust to the market changes such as increased costs in the construction sector, a large amount of uncertainty in the office market with limited pre-leases, and different space usage requirements, but there is no need to redesign the strategy completely,” commented Valter Kalaus, managing director of Newmark VLK Hungary.
“New office projects are being considered, however, in a very careful way; not many developers will move forward with speculative developments. Having a large anchor tenant has always been a big boost for office projects, but now it seems like it will be the key to getting started,” Kalaus says.
