Developments in progress presenting unique features (such as the TóPark project) are also in a strong position.
The premium sector is holding up particularly well. WestEnd City Center, the flagship of TriGranit group, shows the best turnover figures in the market as well as the highest rents. "This fact coupled with the long waiting list and the good preparedness of the project establishes the viability of WestEnd II, even in the present difficult market circumstances," Colliers International Managing Partner, Michael Smithing, emphasizes.
"Interest in WestEnd II is outstanding", adds Sales Director of TriGranit, Árpád Török, also stating that they already have over 48,000 m2 of floor space occupied on the basis of preliminary letters of intent.
In spite of the slowing economy tenant demand for premium category retail units is constantly increasing. "Only this year 21 and next year 23 new brands are opening shops on Andrássy boulevard," says Anita Csörgő, head of the retail division for Colliers International in Hungary.
Discount stores and strip malls are still popular; TRIO, opening in 2010 with 40,000 m2 floor space, has already produced the critical amount of tenants required for financing representing over 50% occupancy rate by its rents of €8-15.
There are other examples of positive developments. The Polish real estate developer and investor, Echo Investment, has recently announced that the construction of MUNDO Center is expected to start in early 2009 after obtaining the building permit in January. MUNDO shopping and entertainment center with 65,000 m2 floor space and Mundo Office Park with four modern office buildings are part of the complex in Bosnyák Square.
The shopping and entertainment center as well as the first office building will be handed over in the fourth quarter of 2010 and preparations are going on according to the plans. Negotiations with the future tenants have been in progress since August 2008 as a result of which the developer has concluded an agreement with SPAR Magyarország Kereskedelmi Kft on the general conditions of the lease contract for 7,500 m2. Potential tenants show active interest in the retail units of MUNDO.
And the co-owner of Whitestone Investment Consulting, Rezső Ezer, says that the Solaris and Neo Center projects were progressing well with the pre-lease agreements in both projects and after closing those the construction may be started within 3-4 weeks calculating with nearly 50% preliminary occupancy rate in case of Solaris. Negotiations are still in progress with key tenants regarding Neo Center; preliminary occupancy rate will rise to 40 % if those are closed successfully.
