Again, JLL's Tenant Representation division is the market leader
JLL tenant representation division closed the year 2017 with an outstanding result of 67,410 sq m total transacted volume, securing a 44% share in the tenant representation market, which made JLL the market leader again.*
JLL's Tenant Representation is market expert in BTS (built-to-suit) projects, offering tailor-made office solutions, and it is also specialising in acquiring tenants for multi-tenant office buildings. During the past 10 year since JLL first introduced independent Tenant Representation Services to the market in Hungary, JLL has become an expert service provider in serving companies with large size office needs. This introduction stemmed from the recognition that it is almost impossible for these companies to look and analyze the office market without the involvement of professionals.
The 2017 results consist of serving both local and corporate JLL clients. The company's market leader position is due to several major transactions, one of them was especially a prominent success and unique project also for the capital because of its planned height. In its scale (50,000 sq m), this assignment proved to be the second largest tenant representation deal of all time in the Hungarian market.
Last year's prestigious clients included Philips and SAP whose pre-lease agreements were coordinated by JLL, furthermore the company contributed to the contract renegotiations of Bayer Hungária, Ericsson, Reckit Benckiser and Baxalta. Besides, Agoda has entrusted JLL's tenant representation with its office expansion whileNSC Global and Türk Telekom international companies are new tenants in Budapest.
Dr. Péter Würsching , Head of Leasing at JLL said: „2018 seems to be fulfilling our expectations already in January, we expect to work with prominent clients this year as well. The deals which are currently under negotiation will represent nearly 50,000 sq m of office space in the Budapest market, which we anticipate to be closed during summer. We are proud of our successful year in 2017 and also to the fact that we have managed to preserve our market leader status in tenant representation."
JLL's market researcher, Barbara Huszár added that due to the strong development activity, the vacancy rate may increase in the future after reaching a record low level of 7.5% by the end of 2017. „The current market saturation shows well that at the end of 2017 there were only a few existing class „A" office buildings in Budapest which had more than 3,000 sq m adjecant, immediately available office space. Demand remains strong, so developers are working continuously to meet this need; by 2020 several hundred thousand square meters of new office space will be available in each submarket."
JLL real estate agency introduced its tenant representation service in 2007, since that time it has carried out nearly 500,000 sq m transactions. The first four biggest office tenant representation transactions are related to JLL. The company has gained a reputation in the Budapest market with key references such as Ericsson, ING headquarters, EY, K&H, Microsoft, PWC or SAP headquarters, that occupy office spaces between 5,000 and 35,000 sq m.