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The – Winter 2021 SPECIAL Savills Research investment market speaking volumes? Is the 2020 Investment Market in The Hague speaking volumes? City Special 2021

Questions that will be answered in this report:

1 The total investment volume 2 Does this mean that the 3 What causes the grew 32% in one year. What does office market in The Hague still investor interest for the this say about the office market? evokes investor confidence? the Hague office market?

EXPECTED GROWTH Table Renowned users of office space in The Hague Figure Expected growth per Growth in number Is the 2020 Investment Market in Nationale Nederlanden (NN) Financial services Household type from McDermott Engineering, manufacturing, constructing of companies in the 2021 untill 2040 Worley Services regarding energy, chemicals, resources G5 The Hague speaking volumes? Electronic consumer goods Number of single- ANWB Association for travelers, supporting all modes of travel Research institue and ‘think tank’ for international relations The year 2020 in the Dutch office market can be characterised as turbulent. person households Clingendael Instituut Rathenau Instituut Research concerning life sciences and technology growing most rapidly OPCW Worldview organisation for prohibition of chemical weapons After a strong start in the first quarter, the market was heavily impacted by the outbreak of Covid-19 in March. In the office Aegon Financial services market, the outbreak generally caused investors to be hesitant at first. This was due to investors questioning the future role Total Oil & Gas +70% of the office, given that the share of working from home might permanently increase. Despite this increased uncertainty in Q8 Oil & Gas Services regarding energy, chemicals, resources the office market, investors still seem rather confident in the office market of The Hague. As a matter of fact, multiple major 4% Oxfam Novib Worldview organisation for alleviation of global poverty investment transactions in office space still took place during the last half of 2020. The total investment volume in 2020 Shell Oil & Gas even increased by 32% compared to 2019. What does this say about the office market in The Hague? And does this mean that T-Mobile Telecommunications the office market in The Hague office still evokes investor confidence, and if so, what causes this? Couple/ Volksbank Financial services Rode Kruis Red Cross FMO Financial services, Dutch development bank NWO National research council of the Netherlands enforcement agency of the 6% Agency for criminal justice cooperation of the European Union of Justice (ICJ) - +69% International Criminal Court (ICC) - TNO Dutch research organisation regarding applied science Single-parent Unicef Worldview organisation for child rights MN Financial services regarding pensions CAK Public services

Source Savills Research 22%

The Hague region: an +62% increasingly diverse economy Besides the growth of the city in terms of population, an increasingly The Hague diverse economy has also been advantageous to the office market in The Hague in the past years.

Traditionally, The Hague was mostly local office market in The Hague. In the last few years. No longer is the seen as a government city, as The fact, the number of companies active economy in The Hague predominantly +58% Hague is the political heart of the in The Hague has risen sharply in the fuelled by the public and telecom Netherlands with over 60,000 people last decade, from 38,355 in 2010 to sector; other industries, from IT and currently employed in the public 62,080 in 2020 (+62%). This figure communications to construction, sector. Other major employers include is broadly in line with the other G5 have become far more prominent Growth despite spatial constraints Covid-19, the attractiveness of the city will likely still ensure Single-person the oil industry (Shell, Total, Q8) and . Furthermore, the firms in than they were ten years ago. Within One of the main reasons why the office market in The Hague an increase in population, as households will undoubtedly the telecom sector (T-Mobile, KPN), question are also increasingly diverse the IT and communications sector, evokes trust, is that the city has steadily grown over the again find their way to the city. 13% although the latter has been greatly in terms of their activities. the high-tech subsector has been a last years. The Hague is currently home to approximately reduced in size since KPN partially particular driver of growth with the 578,000 people, making it the third most populous city in Besides the overall increase in resident numbers, the relative relocated to Rotterdam in 2016. The buoyancy of the local economy arrival of international firms like +46% the Netherlands, just behind Rotterdam. However, with predominance of single-person households is particularly is reflected in The Hague’s above- Testinium and JK Technosoft, which a growth rate of 10.78% (2010-2020), it has been lagging striking in The Hague. Single people looking for an urban While the reduction of the telecom average GDP growth rate in 2019 created approximately 4,000 new jobs behind that of major Dutch cities such as Amsterdam living environment in particular seem attracted to the sector has been large, it has not which has primarily been a result of in the city. and Utrecht. This is mainly due to the fact that The city. The number of residents aged under 20 is increasing affected the overall dynamics of the a greater economic diversity over Hague, in comparison to other Dutch cities, is somewhat as well. This is partly due to an expected growing student restricted in its opportunities for expansion due to its population, attributable to the popularity of coastal location and the fact that it is situated in an already University and University of Technology, both of Strong growth in highly urbanised area, namely the Rotterdam-The Hague which now have satellite campuses in The Hague and are Metropolitan Region (MRDH). Despite this limitation, planning to grow these in the future. Pulling in these young non-government 75% 68% 86% 125% pre-Covid predictions of Dutch Statistics indicated that residents creates extra dynamic in the city and ultimately sectors the city’s population will grow substantially (+13%) to provides an attractive labour pool for the local business 619,500 inhabitants until 2040. Although the growth of the community. Total population slowed down in the months after the outbreak of IT and Specialist business Culture, sport and Construction Source CBS communications services leisure Source CBS savills.nl/research 2 3 Is the 2020 Investment Market in The Hague speaking volumes? City Special 2021

The Hague’s economic and population growth has come with a significant challenge

HOUSING SHORTAGES The Hague’s accessibility map GOOD PUBLIC IN THE HAGUE Economic and population growth presents challenges in keeping the city accessible TRANSPORT The fact that The Hague is now CONNECTIVITY a popular place to live can also WITHIN AND TO be deduced from its positive migration figures. Since a large Travel time from THE HAGUE number of companies were The Hague to Amsterdam attracted to the city in recent +/- 35 minutes years, the number of expat residents has risen to more than 65,000 today. This very sharp increase – 50% in five years – is likely to continue. Travel time from The Hague placed 31st in the The Hague to Schiphol Leiden Expat City Ranking of 2020, +/- 30 minutes with respondents particularly RandstadRail appreciating its job security and to and from Rotterdam the strong local economy. Due in 30 minutes, plus direct light-rail link with to the increase in the number . of expats and students as well as a general fall in the number of persons per household, the Travel time from local housing market is being The Hague to Utrecht squeezed. As a result, house +/- 1 hour prices in The Hague are rising quickly. In fact, in the past year The Hague they have increased relatively faster than in Amsterdam. Zoetermeer Intercity rail to and from The mobility challenge: even Amsterdam in 30-40 The Hague minutes. better public transport needed €325,356 Q3 2019 In recent years, The Hague’s large railway stations in its locales will therefore continue in economic and population growth central area: Den Haag Centraal the years to come, particularly Rotterdam has come with a significant (CS), Den Haag Laan NOI around the stations. At HS, for €369,361 challenge. The accessibility of the (NOI) and Den Haag example, a new passenger tunnel Q3 2020 city is increasingly under pressure, Spoor (HS). Over the past few has been built and a parking deck as The Hague is sandwiched years, plans for dynamic mixed for 2,500 bicycles is now under between the coast and other residential and working districts construction. At CS, one of the 11.7% significant urban centres, such as have been created around all largest underground bicycle International rail Increase Delft and . Subsequently, three of these, which is in line parking facilities ever created – to and from logical routes to access the city, with the general trend of mixed with room for approximately 8,500 within two hours. such as the A12 motorway, are use and densification around bikes – is currently being built. Rotterdam Amsterdam prone to congestion. transportation hubs that we see all over the Netherlands. We In addition, substantial As a result of its location, it is now see the first project being investments have been made in the not easy to improve accessibility planned, built and even delivered. RandstadRail commuter network €442,530 to The Hague by car. This is Especially for young workers, to improve accessibility across Q3 2019 why substantial amounts have who are less and less interested the region and to surrounding Travel time from been invested in recent years in in using cars, such developments communities. Its principal line The Hague to Brussel public transport infrastructure are a good alternative to takes passengers from Den Haag +/- 1h and 45 minutes Accessibility by car €481,893 within and to the city. One motorway office locations (such CS to Rotterdam Central Station Q3 2020 (Savills Research, March 2020) major advantage in this regard as De Binckhorst – see below). in half an hour, at ten-minute Schiphol and is that there are already three Investment in these very urban intervals. Accessible in 10 minutes (by car) Rotterdam-The Hague Accessible in 20 minutes (by car) two airports 8.4% Accessible in 30 minutes (by car) approximately 30 Increase Substantial investment has been made in the RandstadRail Accessible in over 30 minutes (by car) minutes away. commuter network to improve accessibility across the region Source Savills Research savills.nl/research 4 5 Is the 2020 Investment Market in The Hague speaking volumes? City Special 2021

13% The total stock in The Hague shrank by no less than 12% between 2012 and 2020.

FOCUS ON HIGH-RISE AND Better supply-demand equilibrium DYNAMICS: FROM GOVERNMENT Due to the shrinkage of the government and telecom sector, the demand for office AND TELECOM TO KNOWLEDGE space in The Hague was relatively low between 2010 and 2016 compared to today. AND INNOVATION

To illustrate, a temporary fall in demand in 2013, pushed the vacancy building was sold by the Central Government Real Estate Agency The City of The Hague’s Physically, the CID will be rate in The Hague to as high as 12%. Hence, considerable efforts have to a Rotterdam-based investor named Impact Vastgoed, which is Knowledge Economy situated around and in been made in recent years to take office buildings off the market and currently converting it into an apartment building. In 2018, the Agenda (2015) listed four between the train stations transform the vacant buildings into housing, in order to restore the former headquarters of the Royal Netherlands Air Force was sold to economic “clusters” vital CS, NOI and HS as shown equilibrium between supply and demand. As a result, the total stock White House Development and will be redeveloped into a combined to the city, alongside below. in The Hague shrank by 13% between 2012 (4.2 million sq. m.) and residential and business complex. government activities. 2020 (3.7 million sq. m.). This was a national trend, but the share of These are Peace and The emergence of this stock withdrawals in the cities of Amsterdam and Rotterdam was Despite the large number of withdrawals, the city still has the largest Justice, The Hague zone as a modern living much lower (approximately 5%). In Utrecht, the stock level remained stock of office space in the Netherlands after Amsterdam. However, Security Delta (HSD), and working area is virtually unchanged. the decrease in stock of office space in The Hague has brought more Finance/Legal, IT/High- already apparent from balance in the local office market. Although Covid-19 has interrupted Tech and Energy. More the major housing The most significant properties which were taken off the office market the growth of The Hague in terms of economy and population, recently, the scope of developments now in recent years were all owned by the government. Amongst these, further growth of the economy of The Hague in the long term is still the city government’s underway around the was the former Ministry of Infrastructure and the Environment in very likely. Therefore, demand for office space remains intact, while economic ambitions three stations, including 2017 (originally built as the head office of airline KLM). This striking shortages could even appear in certain localities. has been expanded the construction with the formulation of of several high-rise the “Central Innovation residential blocks. The Graph Stock withdrawals have restored equilibrium to the office market in The Hague District” (CID) concept, as soon-to-be-completed market, cutting the vacancy rate to approximately 5% set out in the 2019 policy III tower in paper “Opportunities for Beatrixkwartier is an a New Hague: CID Agenda example of this. Other 2040” (Kansen voor een project in the pipeline Key Stock at the beginning of the year Completions Withdrawals Vacancy nieuw Den Haag: CID include three high- Agenda 2040). With the rise blocks around 4.400.000 14% city’s popularity growing CS: one overlooking apace, the municipal Koningin Julianaplein 4.300.000 authorities believe that (approximately 350 12% they have identified an apartments) and two opportunity to create a on Maria Stuartplein 4.200.000 single powerful economic (approximately 655 centre in The Hague. In apartments), the latter 4.100.000 10% this vision, the CID will 100 and 120 metres in become a global meeting height. Another seven place for people from towers are planned for 4.000.000 many different disciplines the Laakhaven district, 8% – the paper mentions IT close to HS, with one specialists, researchers, reaching a height of 180 3.900.000 entrepreneurs, artists, metres. Thanks to these policymakers, creative developments, the skyline 6% 3.800.000 talents and others “who of The Hague will change make a difference”. radically.

3.700.000 4% DIFFERENT LOCATIONS, the city. Their strong appeal is due in part to VERY DIFFERENT DYNAMICS their excellent accessibility: two of the three 3.600.000 incorporate major public transport hubs, A total of ten distinct office districts can be respectively CS (Central Station Area) and 2% identified in The Hague. These vary NOI (Beatrixkwartier). The city’s third major 3.500.000 considerably in size and dynamics. The three station, HS, is located in the Laakhaven largest districts are the Central Station Area, district. Partly because of that, it is now an Thanks to new Beatrixkwartier and the City Centre. In these “up and coming” area and so can be regarded 3.400.000 0% districts, vacancy rates are lower than as another important locale within The developments, the 2012 2013 2014 2015 2016 2017 2018 2019 2020 average and rents are among the highest in Hague. skyline of The Hague will change radically. Source Savills Research

savills.nl/research 6 7 Is the 2020 Investment Market in The Hague speaking volumes? City Special 2021

Benoordenhout is an inner-city Vacancy rate Total office stock is an inner location hosting a number of large- 78,165 city location home to scale users. The best known is Shell, 3.1% several large public which has its head office here. institutions. Examples of Office supply Average office area this are UNICEF and SER 2,414 3,722 (Social-Economic Council) The Hague City Centre is the historic Vacancy rate Total office stock heart of the city, an area where people 5.4% 351,276 have always lived, worked and Mariahoeve is an office location shopped. Due to its history, the office Office supply Average office area adjacent to the railway station of the stock here is relatively old: the average 18,865 6,178 same name. Although some distance year of construction is 1890. Moreover, from the city centre, its good these offices are relatively small. The accessibility is an advantage over other user market is very diverse, but areas. Major users are AEGON and dominated by financial and business Total. services as well as the government. Vacancy rate Total office stock The International Zone is + - best known for the World 158,795 Vacancy rate Total office stock 7.1% Forum congress centre Vacancy rate Total office stock and events venue. Many 69,225 Office supply Average office area + 7.9% 5.6% 694,757 embassies are also 11,339 5,149 located in this area. Office supply Average office area Office supply Average office area 5,463 9,889 38,702 2,741

+ - Prime rent Prime rent + - €175 Prime rent + + €165 + €125 Vacancy rate Total office stock The Central Station Area centres + International zone Mariahoeve 756,478 on Den Haag Centraal railway + - + ++ 2.4% station (CS). This area is Prime rent characterised primarily by Office supply Average office area €185 high-rise buildings, many of them 17,924 18,451 housing government ministries. Bezuidenhout Prime rent Prime rent €225 €225 Prime rent City Centre Central Station ++ +- Area €225 Beatrixkwartier

Prime rent Prime rent €190 €125 Prime rent Laakhaven Binckhorst €155 Ypenburg/Forepark Laakhaven is known as a former port and industrial area. Due to its ++ + favourable location next to Den Haag Holland Spoor station (HS), several high-rise residential blocks are to be built here in the coming years. The Vacancy rate Total office stock Beatrixkwartier is situated north of the Den district is dominated by educational 378,298 Haag Laan van NOI station and, like the institutions such as The Hague 1.9% Central Station Area, is characterised by University of Applied Sciences, but high-rise, multi-occupancy office buildings, Office supply Average office area ++ + T-Mobile is also based here. One new such as WTC The Hague. Major users include major user will be PostNL, which is due 7,147 15,762 Deloitte, Nationale-Nederlanden and Siemens. to relocate its head office to Laakhaven + in 2021. + + Binckhorst is a formerly mainstream Ypenburg/Forepark is a “motorway” business park which has attracted + location, easily accessible by car. The Vacancy rate Total office stock more and more creative-sector activity stock here is a mix of commercial and +- 197,462 in recent years, mostly in the form of office premises, and its users are 13.7% SMEs and microbusinesses. mainly SMEs. Office supply Average office area 27,040 9,403 Vacancy rate Total office stock 210,045 Vacancy rate Total office stock 11.6% 9.3% 161,745 Office supply Average office area 24,288 9,083 Office supply Average office area 15,079 7,668

savills.nl/research 8 9 Is the 2020 Investment Market in The Hague speaking volumes? City Special 2021

Graph In the Central Station Area and the City Centre, large offices are predominantly government-owned New developments are possible, but need stimulation 800,000 Due to the high office vacancy rates in The Hague at the time of its Owner-occupier formulation, the city’s Office Strategy for 2010-2030 initiated substantial Domestic investor cuts to the total stock and a programme to repurpose large parts of it. 700,000 The government pullback of 2015-2016 also proved only a first step towards tackling the expected scarcity. In these temporary, so that today vacancy figures are low. The efforts, the city government is focusing primarily on growth Foreign Investor impending shortage mentioned above has already prompted in high-quality inner-city locations around the major stations. 600,000 the city government to introduce a revised office strategy, under the title “The User Central 2.0”. Whereas The Hague Previous analyses have shown that the profile of the types of was previously conservative in creating more office space, company active within The Hague is changing. But how has there is more scope in this new strategy for developments this affected the city’s user market? And how have investors 500,000 of up to 55,000 sq. m. as short-term additional stock. This is responded to the changing dynamics?

Domestic investor 400,000 Owner-occupier

300,000 Foreign Investor Domestic Investor Government

200,000

Government

100,000 Foreign Investor

0

Beatrixkwartier Central Station Area City Centre

Source Savills Research Shortages likely very soon Since The Hague has attracted more and more diverse companies over the last years, demand for office space has increased steadily.

Even in the midst of the Covid-19 crisis, only the Stationspostgebouw near Holland Spoor owns and uses a lot of property in The Hague. 1.9% of the office space in Beatrixkwartier is and the former offices of the Ministry of Of all the large office buildings (> 5,000 sq. vacant, and only 2.4% in the Central Station Social Affairs, where approximately 40,000 m.) in the three biggest office districts, no Area. Besides increased demand over the last sq. m. of office space will be created.On fewer than 59% are government-owned. years and withdrawal of superfluous stock, the other hand, a substantial proportion Therefore, the growth in demand from there are two other reasons. of the existing stock is unavailable to new private tenants will have to be met with just companies. Although the government has 40% of the total stock in a market where the On the one hand, only a few new office reined in its activities in recent years, it still vacancy rate is already low. developments are definitely in the pipeline: 20,000 sq. m. near The Hague Holland Spoor (NS-Kavel) and 10,000 sq.m. in Even in the midst of the Covid-19 crisis, only 1.9% Beatrixkwartier (Monarch IV). In addition, of the office space in Beatrixkwartier is vacant, a number of refurbishments are scheduled; and only 2.4% in the Central Station Area. they include De Groene Toren (Beatrix II),

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Due to the increased diversity of Graph Interest in The Hague continues to increase, cutting initial yields new users in the most important The user market: increasingly office districts, The Hague is more and more shaking off its image as a 700 8% diverse, but Covid-19 halts activity government city. Furthermore, the increased diversity offers attractive and interesting opportunities for investors. 7% So to what extent are they currently 600 finding their way into the The Hague Graph After above average take-up in recent years, a sharp decline followed in 2020 office market? 6% Key Total Average 500 Graph User market in The 180,000 5% Hague reflects diversity 400 160,000 4% 4% Government

140,000 € million x 300 7% 3% 120,000 Services, Other 4% 100,000 200 Mining of minerals 2%

80,000 28% Financial services 100 1% 60,000

40,000 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 20,000

Source Savills Research 0 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source Savills Research The investment market As a consequence of the growth of the economy of its property holdings. Subsequently, the government’s Increased investment volume despite Covid-19 The Hague, take-up of office space has been above share of the market fell considerably, at a time when average in the years before the outbreak of Covid-19. total take-up volumes were growing. As a result, it However, due to the outbreak of Covid-19, take-up can be concluded that the increase in the number 27% Until 2015 investors considered The Hague a confidence in the The Hague office market volumes decreased by more than half. On the one of companies active in The Hague, and their greater Other relatively limited prospect compared to Rotterdam remained. Decreasing take-up of office space has hand this is mainly a consequence of increased diversity, has also impacted the city’s user market. and Amsterdam. A high vacancy rate coupled primarily affected the risk perception of office economic uncertainty, yet another explanation is the with uncertainty surrounding the government buildings with an high amount of vacant floor space low vacancy rate in the office area’s of Central Station This notion is further confirmed when looking at the 7% announcement that it intended to give up a number on the short term. Meanwhile, the fundamentals IT & communications Area and Beatrixkwartier where a lack of qualitative user markets in the three largest office districts. In of its office buildings suppressed investment for the long term are still strong. Key reasons for office space can be observed. Covid-19 and a lack of the past two years, a wide variety of companies have 2% volumes. The government’s dominant ownership this are the increasingly diverse economy and the product has therefore influenced take-up numbers. contributed towards take-up there. In particular, Construction position did not help, either. low vacancy rates in The Hague. This scarcity is The largest take-up confirmed this year was that of firms in the business and financial services sector exacerbated by the proportion of large government- the new ANWB head office (25,000 sq m), but they accounted for around 40% of the total take-up in the 2% This picture changed from 2016 onwards. The owned office buildings, in the Central Station will only move into their new office in 2024. What last two years. Examples of large lease transactions Education improved supply-demand equilibrium prompted Area and the City Centre in particular, which speaks to the advantage of The Hague in the last years include Nationale-Nederlanden, which leased increased investor interest in the office market in continues to restrict opportunities for investors. however, is that the dependency on the government more than 4,900 sq. m. at De Haagse Poort in 7% The Hague. Investment volumes in 2017 were nearly In fact, in the city’s three largest office districts, in the total take-up numbers has decreased. In 2019 Beatrixkwartier and The Hague Tech, which leased Real triple that of 2015, totalling almost €650 million. 58% of such properties are unavailable to the estate for example, the government was responsible for less 4,000 sq. m. in the former Ministry of Social Affairs 12% What is remarkable, is that despite the outbreak commercial market. Like users, investors thus face than 10% of the total take-up, while the average take- building. In contrast, the government accounted for Business services of Covid-19 in The Netherlands in 2020, the total a combination of limited supply and high demand, up contribution of the government was 35% since only 3,313 sq. m. of total take-up (4%) in these three investment volume was higher than in 2019 (+32%). which is why rents and yields in prime locations 2011. This is a consequence of its decision to reduce districts in the last two years. have remained relatively unaffected by Covid-19. This shows that despite the economic uncertainty The prime yield for offices in The Hague is currently caused by the outbreak of the pandemic, investor 4.5%, on the same level as last year. Source Savills Research

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International entrants In relative terms, this yield is still considerably higher compared to other large Dutch cities such as Amsterdam and Rotterdam. The KEY FINDINGS combination of this yield gap and a favourable division of supply and demand, has increasingly led foreign investors to investing in the The Hague office market. In 2020, multiple large-scale office buildings were acquired by foreign investors, such as the Monarch Tower, Silver Despite geographical limitations, the Tower, HeadQuarter, Stationspostgebouw and the FMO building. 1population of The Hague is set to grow by This furtherly reinforces the impression that foreign investors are no less than 16% in the next 20 years. particularly keen to enter this market, over and above their traditional interest in property in the city. In the Central Station Area office The city’s economy has experienced district, eight of the ten large office buildings (> 5,000 sq. m.) not 2strong growth, indicated by the owned by the Dutch government are now in the hands of foreign increased number of companies active investors. In Beatrixkwartier, the same applies to nine out of fourteen there (+62%). Moreover, this growth is such properties. In the City Centre, half of the privately owned larger attributable not just to government-related offices are owned by foreign investors. activities but also, and to an ever-greater extent, to other sectors such as IT and communications, construction and specialist business services. The office take-up figures also reveal that the diversity of users has increased enormously.

The Hague is investing heavily in 3accessibility, in particular around its three main railway stations. These are being transformed into public transport hubs surrounded by work, residential and leisure functions.

Due to the large number of premises Sources ING Bank, Brainbay Database, Savills Research, CBS, City of The Hague, Targomo, PropertyNL, Vastgoedmarkt, InterNations 4withdrawn from the office stock in recent years, the supply-demand equilibrium has been largely restored in recent years. The largest office districts now even face shortages. Outlook Savills World Research We provide bespoke services for landowners, developers, occupiers and investors across the The total take-up of office space Although Covid-19 has had a strong impact in the coming years. Adding qualitative office lifecycle of residential, commercial or mixed-use projects. We add value by providing our clients 5decreased significantly in 2020 on the take-up of office space in The Hague space on prime locations is even required. with research-backed advice and consultancy through our market-leading global research team compared to 2019, which is a consequence in 2020, the high investment volume in 2020 of increased economic uncertainty, but has shown that confidence among investors Despite the influence of Covid-19, perspectives also due to a lack of high quality offices on remained. Key reasons of this are the growth of on the The Hague office are therefore still central locations. the city in terms of population and increased favourable on the long term. Growth in diversity in terms of new users of office space terms of population and economy on the long This has not impacted the investment over the last years. The latter caused the The term is still expected, and the dependency 6market however, as the total investment Hague office market to be less dependent on on the government in terms of take-up is volume remained at a high level. However, the government. Furthermore, because a large decreasing. These developments should help because the government owns most of the part of the stock there is in the hands of the The Hague even furtherly shake off its image large office buildings in a number of key government, and also because the number as a government city, so that Dutch and districts – 58% of the stock in the three of developments currently planned is very international investors are drawn to it in even Clive Pritchard Jordy Diepeveen Reinier Wegman Ellen Waals Jordy Kleemans largest – product availability is limited. This limited, it is expected that the vacancy rate on greater numbers. Head of Head of Acquisitions Director Head of Agency Head of Research & will cause yields to remain stable despite prime locations will not be strongly affected +31(0)20 301 2031 Acquisitions Investments +31 (0)20 301 2040 Consultancy Covid-19. [email protected] +31 (0) 20 301 2021 +31 (0) 20 301 2021 [email protected] +31 (0) 20 301 20 94 [email protected] [email protected] [email protected] All in all, the The Hague office market is still The city’s economy is growthing: rising GDP and highly valued among investors. Savills plc: Savills plc is a global real estate services provider listed on the Stock Exchange. We have an international network of more than 600 offices and associates throughout the Americas, the UK, +62% the increase of number of active companies. continental , Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional services to clients all over the world. This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. While every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research. savills.nl/research 14 15 Claude Debussylaan 48 1082 MD Amsterdam +31 (0) 20 301 2000

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