JLL’s office group has received the exclusive leasing mandate of Exchange Palace which is one of Budapest’s most prominent office building projects at the moment.
The owner of Exchange Palace, the Canadian Tippin Corporation’s subsidiary, Tőzsdepalota Kft. mandated Jones Lang LaSalle Kft. for the leasing of the building. Exchange Palace with its premium location is based in the heart of the capital, Liberty Square, being the second largest building under monument protection in Central Business District office submarket after the Parliament.
In the apx. 50,000 square meters monument which was built in eclectic and Art Nouveau style, the developer rebuilds apx. 31,700 square meters. The property comprises to apx. 25,700 square meters A+ quality offices and apx. 6,000 square meters premium retail spaces. On the ground floor of the over 100 years old property there will be premium areas available for coffees, restaurants and retail shops. The functions of the spaces used by its old tenant, MTV, won’t change mainly, but CMA Architects will rethink the spaces – even the two stock halls and the roofs will be rebuilt into offices providing tenants either cellular, open and loft spaces, green roof terraces, courtyards and 360 degree imposing panoramic view. Further, the developer aims to acquire such a green certification focusing on wellbeing that hasn’t been applied in Hungary yet.
Michael Tippin, the Canadian owner of Tippin Corporation explained: „I’m happy that JLL’s office agents are so enthusiastic about the project and that we work together on this emblematic building. Reconstruction works are planned to start at the beginning of 2018 with a budget of about 38 million Euros. The history of Budapest’s old stock exchange, built in 1905 and designed by Ignác Alpár, is determinative, therefore during the refurbishment we put a great emphasis on the preservation of the historical bourse. In the rooms which were destroyed in the past century, we employ glass-steel solutions.”
Ferenc Furulyás, managing director of JLL added: „There are not too many better locations to be found in Budapest than Liberty Square in the downtown. At the moment in this submarket there are only a few contiguous office spaces available and due to the land shortage development potential is limited. The steady demand justifies to start the development of Exchange Palace as the vacancy rate in CBD office submarket has decreased to 9,7% in the first quarter of 2017 compared to the end of 2016 (10,6%). Given that among the actual modern office developments this project is the only iconic architectural masterpiece that offers more than 31 000 square meters of leasable area, our property advisors will work with great expectations and enthusiasm on one of the most beautiful buildings of Budapest.”
The unique architectural solutions in the grandiose building go beyond the modern office fit-outs. In the separate wings of the building it is also possible to lease headquarters from 6,000 to 9,000 square meters. The asking rents are expected between 18-25 EUR/ square meter. JLL starts the leasing from middle of May and according to the plans from the beginning of 2020 the building will shine in its old magnificence and also the first tenants can move into their new offices.