Dutch Office Market Report Occupier Market Trends in the Randstad 2018 Nl Real Estate in Association with Knight Frank
Total Page:16
File Type:pdf, Size:1020Kb
RESEARCH DUTCH OFFICE MARKET REPORT OCCUPIER MARKET TRENDS IN THE RANDSTAD 2018 NL REAL ESTATE IN ASSOCIATION WITH KNIGHT FRANK AMSTERDAM THE HAGUE ROTTERDAM UTRECHT AMSTERDAM OFFICE MARKET REPORT 2018 RESEARCH THE HAGUE OFFICE MARKET REPORT 2018 Amsterdam’s main office districts Falling availability levels are creating a A10 challenging market North for occupiers. Sloterdijk-Teleport West A10 Centre A10 A9 South East Riekerpolder South Axis A10 Diemen A1 FIGURE 1 Buiten- veldert Availability versus take-up Southeast 000’s sq m Hoofddorp A9 Schiphol A9 2,000 Amstelveen 1,800 Schiphol-Rijk 1,600 A2 A4 1,400 1,000 1,000 800 AVAILABILITY 600 TAKE-UP 400 AMSTERDAM 200 High levels of office demand were maintained Southeast district and the area around the 0 in most parts of the Amsterdam region Amstel railway station. Vacancy levels also 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 in 2017, although take-up in the city of fell in Hoofddorp and Amstelveen, although Amsterdam itself decreased by 24% to Source: Bak Property Research / Knight Frank more office space became available at 300,000 sq m, due to a reduced number of Schiphol Airport. large deals compared with 2016. However, With the city authorities restricting new FIGURE 2 market sentiment remained positive, and office construction, there is a very limited Availability rates by district, there were a very high number of small and development pipeline. This will create year-end 2017 medium sized transactions. Despite the shift an increasingly challenging market % away from larger deals, a number of major for occupiers seeking office space in occupiers were active, including Alliander, 20 Amsterdam, and rents are likely to face ING, Uber and Booking.com. further upward pressure. As in recent years, demand was focused 15 mainly on the city centre, the Southeast district and the South Axis. Although TABLE 1 take-up in the South Axis decreased in Office rents 2018 (€ per sq m pa) 10 2017, the European Medicines Agency District Rental range announced plans to occupy 38,000 sq m in Amsterdam Centre 200 - 425 a new building in this location. Of the areas 5 Amsterdam Sloterdijk 135 - 200 surrounding Amsterdam, Hoofddorp had the strongest increase in take-up, which almost Amsterdam West 135 - 200 0 doubled to 47,000 sq m. Amsterdam South Axis 275 - 425 Office availability decreased for the third Amsterdam Southeast 135 - 200 Diemen successive year, due both to the take-up of Amsterdam Other 100 - 170 Amstelveen second-hand buildings and the withdrawal Amstelveen 90 - 175 Amsterdam West Amsterdam of large volumes of space for redevelopment. Amsterdam Other Amsterdam Amsterdam Centre Amsterdam Diemen 100 - 165 Hoofddorp/Schiphol In the city of Amsterdam, vacancy decreased Amsterdam Sloterdijk Amsterdam Amsterdam Southeast Amsterdam Amsterdam South Axis Amsterdam to 600,000 sq m, or 10.3% of the total stock. Hoofddorp/Schiphol 125 - 385 Source: Bak Property Research / Knight Frank Availability declined most sharply in the Source: Knight Frank 2 Please refer to the important notice at the end of this report THE HAGUE OFFICE MARKET REPORT 2018 RESEARCH ROTTERDAM OFFICE MARKET REPORT 2018 The Hague’s main office districts Take-up in the city of The Hague more than E19 Convention A4 doubled in 2017. Centre Benoordenhout Leidschendam Centre Bezuidenhout Binckhorst Laakhaven A12 FIGURE 1 E30 Availability versus take-up Rijswijk Zoetermeer 000’s sq m 1,200 E19 A4 1,000 A13 800 Delft 600 AVAILABILITY TAKE-UP 000 200 THE HAGUE Demand for office space in The Hague availability, which was most noticeable 0 and its surrounding towns increased in The Hague and Delft. In the city of 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 in 2017. This was primarily evident in The Hague, availability declined to Source: Bak Property Research / Knight Frank the city of The Hague, where take-up 442,000 sq m, or 11.7% of the total reached almost 105,000 sq m, more than stock. Conversely, Rijswijk recorded a double the level of 2016. A particularly substantial rise in availability, and there is FIGURE 2 noteworthy deal saw the Central the prospect of a further increase when Availability rates by district, Government Real Estate Agency acquire Shell vacates its current premises in year-end 2017 almost 30,000 sq m, while there were this location. % other significant transactions involving 35 the Kosovo Court and the Municipality of The Hague. 30 The larger deals of the year were mainly TABLE 1 25 concentrated in the city centre and, Office rents 2018 (€ per sq m pa) 20 as a result, this area accounted for a District Rental range significant share of overall take-up. 15 The Benoordenhout and Beatrixkwartier The Hague Centre 135 - 200 10 districts also contributed more modestly The Hague Bezuidenhout 145 - 195 to the improvement in overall take-up. 5 The Hague Benoordenhout 135 - 190 Outside of the city of The Hague, a The Hague Binckhorst 70 - 140 0 notable strong performer was Zoetermeer, The Hague Convention Centre 145 - 185 Delft where take-up increased to approximately Rijswijk The Hague Other 90 - 165 17,000 sq m, boosted by Seaway Heavy The Hague Zoetermeer Lifting’s acquisition of 9,000 sq m in Leidschendam-Voorburg 90 - 130 The Hague Other Rijswijk 90 - 140 The Hague Centre the Rokkeveen area. A clear increase in Convention Centre The Hague Binckhorst take-up was also posted in Rijswijk. Delft 90 - 130 Leidschendam-Voorburg The Hague Bezuidenhout The Hague Benoordenhout The rising take-up in the region was Zoetermeer 75 - 140 Source: Bak Property Research / Knight Frank accompanied by a significant fall in Source: Knight Frank 3 ROTTERDAM OFFICE MARKET REPORT 2018 RESEARCH Rotterdam’s main office districts Capelle a/d IJssel Office availability – oofdweg E25 A20 decreased for the A13 Rotterdam Airport third successive E19 Alexander A20 year in Rotterdam. E20 Brainpark Schiedam Centre Capelle a/d IJssel – Rivium South FIGURE 1 Availability versus take-up A4 000’s sq m 1,200 A16 A15 1,000 E19 800 600 AVAILABILITY TAKE-UP 400 200 ROTTERDAM Against expectations, office take-up in 2016. The decline in availability was 0 the Rotterdam region decreased in 2017 most noticeable in the city of Rotterdam compared with 2016. This trend was 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 itself, where vacant space fell to witnessed in both the city of Rotterdam Source: Bak Property Research / Knight Frank 563,000 sq m, or 17.4% of the total and the neighbouring town of Capelle stock. A significant volume of office a/d IJssel. In the city of Rotterdam, space in the city centre was withdrawn take-up fell by 10% to approximately from the stock for redevelopment. In FIGURE 2 79,000 sq m, mainly due to a relative contrast, vacancy levels increased in Availability rates by district, year-end 2017 lack of large deals. The majority of Capelle a/d IJssel, where approximately % transactions were in the 200-1,200 163,000 sq m was available for lease at sq m size range, although there were the year-end, or 33.7% of total stock. 35 a few larger deals involving occupiers including Eastman Chemical, Coca-Cola 30 and Cambridge Innovation Centre. 25 As in previous years, demand in Rotterdam was concentrated in the city TABLE 1 20 Office rents 2018 ( per sq m pa) centre, and the volume of transactions € 15 held up well in this location. Elsewhere in Rotterdam, office demand increased District Rental range 10 strongly in the Brainpark office district. Rotterdam Centre 145 - 225 5 Demand for space in the Alexander Rotterdam Alexander 135 - 165 district was solid, albeit this did not 0 Rotterdam Brainpark 140 - 170 translate into a substantial increase in take-up. However, the Kop van Zuid Rotterdam South 90 - 210 district received limited demand. Rotterdam Other 85 - 150 Schiedam Office availability in the Rotterdam region Capelle a/d IJssel 90 - 135 Rotterdam Other Rotterdam Rotterdam South Rotterdam Capelle a/d IJssel Rotterdam Centre Rotterdam continued on a downward trend, falling Schiedam 80 - 135 Rotterdam Brainpark Rotterdam Rotterdam Alexander Rotterdam to 767,000 sq m by the end of 2017, a Source: Bak Property Research / Knight Frank decrease of 53,000 sq m compared with Source: Knight Frank 4 UTRECHT OFFICE MARKET REPORT 2018 RESEARCH Utrecht’s main office districts A27 A2 Office take-up Maarssen remained high in E35 Lage Weide the city of Utrecht. A28 Centre Rijnsweerd FIGURE 1 Availability versus take-up De Meern A27 000’s sq m E25 Papendorp E30 E30 800 A12 Kanaleneiland 700 A12 600 500 400 AVAILABILITY Nieuwegein TAKE-UP 300 Houten 200 100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 UTRECHT Source: Bak Property Research / Knight Frank Office take-up in the Utrecht region availability within the region. This was also amounted to approximately 125,000 sq m influenced by the removal of 85,000 sq m FIGURE 2 in 2017, a similar level to 2016. Demand from the office stock due to demolition or Availability rates by district, for space was particularly strong in the city change of use. Vacancy rates decreased in year-end 2017 of Utrecht itself, where take-up reached nearly all parts of the region, but fell most % 102,000 sq m. The largest deal of the year sharply in the city of Utrecht, particularly in saw the telecommunications operator the Papendorp and Kanaleneiland districts. 40 VodafoneZiggo lease 16,000 sq m of office At the year-end, a total of 307,000 sq m 35 space in Hoog-Catharijne, while other was available in Utrecht, which represents a vacancy rate of 11.7%.