OFFICE 2021 SNAPSHOT SWEDEN Q1
I Know A Place OFFICE SNAPSHOT SWEDEN
In our Q1 2021 edition of Cushman & Wakefield offering a mix of private offices and shared common Office Snapshot Sweden, we dive deeper into the areas. This type has gained momentum both in flexible office concept. As usual, the current office Europe and Sweden with expanding businesses. market development in Sweden is covered at a submarket level to give you the best insights for In Q1 2021, office yields and rents are more or less the Stockholm, Gothenburg and Malmö markets unchanged compared to the previous quarter. The as well as for the regional cities. effects of the pandemic are mainly reflected in the It has been a year since the first COVID-19 outbreak, vacancy rates, which continue to rise to slightly and some tenants are looking to reduce their office higher levels in Gothenburg and Malmö CBD. space. However, Cushman & Wakefield would like Stockholm CBD remains more or less unchanged on to highlight the risk that this reduction may imply a quarterly basis due to new rentals compensating for future business expansion. When the need for for recently vacated space. Interestingly, newly expansion emerges, it can be problematic to find developed areas with modern office buildings have suitable office premises since vacancies continues in several cases had decreasing vacancies during to remain at a low level. The Information and this period. communications technology sector in Stockholm, According to the latest Cushman & Wakefield which has benefitted from the pandemic, may Swedish Property Investor Confidence Index, real specifically need to consider this. Factors such as estate experts continue to expect a dropping short-term rental decisions and maturing digital demand for office space. However, the outlook is habits open for hybrid office solutions to gain less pessimistic in comparison with all the post- market shares. pandemic surveys conducted in 2020. Flexible office solutions have been on the market This report provides recent updates on the for several years. For decades, business centres Swedish office market as per the end of Q1 were the only option. Now there also are coworking 2021. When in need of more deep level market and hybrids. The hybrid offices are growing rapidly, data, do not hesitate to send us your request.
Staffan Dahlén Annika Edström Head of Strategic Advisory Head of What’s Next / Research +46 702 004 478 +46 702 345 925 [email protected] [email protected] STOCKHOLM CBD
3.30% 8,000 SEK/m2 4.5% Tenants are investigating whether GOTHENBURG CBD their office needs are fulfilled or not, in order to maximise the efficiency. The importance of flexible leases is 3.70% 3,400 SEK/m2 4.5% therefore even greater. We can help you find an optimal work environment, that MALMÖ CBD suits your needs. Gustaf Benndorf 4.00% 3,100 SEK/m2 6.5% Head of Tenant Representation 2021 +46 767 203 418 Epicenter [email protected] Prime yield Prime rent Vacancy 2 Cushman & WakefieldQ1 | Office Snapshot Sweden Q1 2021 FLEXIBLE OFFICE SOLUTIONS
Reduction of area when signing new rental space and 55% in Stockholm. Malmö has a larger contracts is expected to lead to a shortage share of business centres, 45%. The coworking of space as the pandemic situation eases and market is strongest in Stockholm and Malmö, CO-USING OFFICE SPACE employees want to return to the pre-pandemic both comprising approximately 20% of the total normal office life. This situation, in combination amount of flexible office square meters. UTILISES THE STOCK MORE with limited availability of office space can boost The trend of landlords managing flexible office the flexible office market ahead. EFFICIENTLY AND FULFILLS THE space themselves is unique for Sweden, totalling Earlier, it was foremost start-ups, small to 15% of the operator market in Stockholm based ENVIRONMENTAL, SOCIAL AND medium sized enterprises and freelancers on our latest assessment. The flexible focus that used flexible office opportunities. As the has positive side-effects such as creating more GOVERNANCE (ESG) CRITERIAS. understanding of the concept increases and attractive activities on the ground floor providing benefits become clearer, more and larger tenants the office building and the area with additional are open for the possibility. Global tenants use services, benefits which also may attract people memberships with coworking operators to to return from the ‘pandemic normal’ of working THE FLEXIBLE OFFICE TREND complement business needs with the amount of from home. The same positive outcome can of space needed for specific projects, time frames course also be obtained by an external coworking RANGE FROM RENTAL CONTRACTS or event requirements. operator. Swedish landlords have both started their own concepts and acquired businesses Flexible office solutions are more densely TO OFFICE DESIGN. to enter the flexible office market. Even hotel focused to CBD and the inner-city compared operators such as Scandic has looked outside of to the outskirts of Stockholm, Gothenburg and its core business and expanded into the flexible Malmö. In Stockholm the total flexible office area office market, benefitting from the unique amounts to 325,000 m2, in Gothenburg 50,000 position of having several locations with ready to m2 and Malmö 45,000 m2. Hybrid offices are BUSINESS CENTRES, HYBRIDS OR use premises and services. particularly popular, especially in Gothenburg where it comprises 65% of the total flexible office COWORKING – THERE ARE AVAILABLE SOLUTIONS FOR ALL NEEDS AND BUSINESS CENTER HYBRID PREFERENCES AS THE NUMBER OF Focus on conventional office tenants Diverse focus, mainly large corporations • Floorplan dominated by private • Combined open plan and private LOCATIONS INCREASES. offices offices • High degree of service orientation • Trendy design • Formal business environment • The benefits make this the fastest growing concept How do you create an office environment where employees thrive, work smarter and are COWORKING FLEXIBLE healthier? A great workplace attracts talent and Focus on start-ups and freelancers Focus on small to medium-sized enterprises keeps its employees, both are key for business • Major share of open plan success. Our team can help you find the best • Targeting communication and • Ready to use offices workplace for your needs. collaboration • Fullt furnished with flexibility in lease • Trendy design period • Short transition period Marie Cronström Deputy Head of Sweden Head of Occupier Services Cushman & Wakefield Sweden identifies four different Flexible Office solutions. +46 706 064 110 [email protected] United Spaces
4 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 5 OFFICE YIELD DEVELOPMENT
7%
TRANSACTION 6%
5% MARKET 4% 3%
2% SWEDEN 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 2020 Q1 2021 Stockholm CBD Stockholm Decentralised Gothenburg CBD Malmo CBD The transaction volume for Q1 2021 reached SEK 39.6 billion, including the Uppsala Inner City transaction volume for the office segment of SEK 3.7 billion. In total, the domestic investors have been active comprising 75% of the purchasers and 90% of the vendors. International investors who traditionally are strong office INTERNATIONAL AND DOMESTIC INVESTORS IN THE SWEDISH PROPERTY MARKET, ALL SECTORS buyers are perceived as more careful, much due to the uncertainty regarding occupier demand. Domestic buyers with their local presence and knowledge are 100% slightly more optimistic since the leasing market is still active, although slow. 90%
The segments which currently are still benefitting from the pandemic situation 80% are residential and industrial (including logistics), which together constitutes for 70%
60% of the total transaction volume during the first quarter. 60%
50%
40% TRANSACTION VOLUME PER SECTOR, MSEK 30% MSEK 250,000 20% 10%
200,000 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 150,000 Cross Border Domestic
100,000 OFFICE INVESTMENT VOLUME SWEDEN, GSEK
50,000
Q1 2020 - 5.3 7.4 201 6 201 7 201 8 201 9 2020 Q1 2021
Healthcare, Education etc. Industrial Mixed Use Office Residential Reta il Other Q1 2021 2.5 1.2
Domestic Cross Border Interested in discussing the investment Ola Jacobsson market trends? Let us know and we Partner, Capital Markets will give you an update on the latest +46 703 813 260 development. [email protected]
6 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 STHLM STHLM CITY INNER CITY TRENDS
MARKET DATA 5%
Submarket Average rent, SEK/m² Prime rent, SEK/m² Yield, low % Yield, high % Vacancy rate, % HAGASTADEN CBD 6,200 8,000 3.30 3.75 4.5
Östra Kungsholmen 5,000 6,000 3.75 4.25 2.5 VASASTADEN GÄRDET VÄRTAN & Västra Kungsholmen 3,200 4,000 4.00 4.50 6.5 FRIHAMNEN Södermalm 4,000 5,200 3.75 4.50 4.5 Overall vacancy rate NORRMALM Hagastaden 3,600 4,500 3.50 4.00 5.0 2 ÖSTERMALM Vasastaden 4,400 5,200 3.75 4.25 6.5 3,000m
Norrmalm 4,600 5,500 3.50 4.25 5.5
Östermalm 4,500 6,500 3.35 4.00 7.0 VÄSTRA Gamla Stan 4,000 4,800 3.75 4.25 3.5 KUNGSHOLMEN ÖSTRA CBD
Gärdet 3,400 4,200 4.00 4.75 6.5 KUNGSHOLMEN
Värtan & Frihamnen 3,200 3,700 4.00 4.75 4.5 New supply 2021 TRANSACTIONS GAMLA STAN
Submarket Date Property Purchaser Vendor Size, m² Price, MSEK Price, SEK/m² Yield, %
Gamla Stan Mar-21 Pan 1 Vasaparken Parts & Paomees 3,200 Conf. Conf. Conf.
Gamla Stan Feb-21 Bacchus 1 Brovalvet AB Havsstigen Investments AB 3,000 550 186,000 -
CBD Jan-21 Fyrkanten 11 Mitsubishi Estate AFA Fastigheter 7,000 Conf. Conf. Conf.
Östermalm Nov-20 Guldfisken 31 Kramerica Industries SEB Trygg Liv 6,200 640 103,000 -
Gamla Stan Nov-20 Glaucus 4 & 5 NAIBAF AB Kvalitena 2,200 Conf. Conf. Conf. SÖDERMALM LETTINGS
Submarket Date of publication Property Property owner Tenant Lease size, m² Start of lease
Östra Kungsholmen Mar-21 Brädstapeln 13 Europa Capital Svensk Exportkredit 3,400 Oct-21
CBD Feb-21 Jakob Större 18 Vasakronan Riksdagsförvaltningen 3,100 Renewal Vasastaden Feb-21 Våghalsen 15 AFA Fastigheter Doktor.se 1,300 Jun-21 Looking for office tenants? CBD Jan-21 Ladugårdsgrinden 18 AFA Fastigheter Söderberg & Partners 5,500 Jun-21 Regardless of your needs - our CBD Jan-21 Bocken 39 Fabege Convendum 7,600 Jun-22 leasing team provides you with NEW DEVELOPMENTS up to date market knowledge and advise on whatever project you Net assignable Submarket Project Property owner Date of completion Occupancy rate office area, m² may have. CBD Skären 9 Hufvudstaden Q1 2021 2,600 ~100%
Hagastaden Life City, Molekylen 1 Atrium Ljungberg Q1 2022 27,500 ~50%
Östra Kungsholmen Klamparen 10 KLP Q1 2022 5,000 ~100% Rikard Skoglund
Södermalm Nattugglan 14 Vasakronan Q2 2022 15,000 ~100% Head of Agency Leasing
Värtan & Frihamnen The Dockworks Niam Q3 2023 32,000 - +46 707 543 313 [email protected]
8 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 STHLM KISTA STHLM REGIONAL SUBURBS TRENDS JÄRVA KROG FRÖSUNDA
MARKET DATA 10% ARENASTADEN
Submarket Average rent, SEK/m² Prime rent, SEK/m² Yield, low % Yield, high % Vacancy rate, % SUNDBYBERG C HAGA NORRA Globen 2,900 3,600 4.00 4.50 8.0
Marievik - Liljeholmen 3,000 3,600 3.75 4.25 7.5 SOLNA BUSINESS Hammarby Sjöstad 3,100 3,900 3.75 4.50 11.0 PARK Kista 2,200 2,700 4.75 5.75 18.5 Overall vacancy rate SOLNA STRAND Sickla 2,600 3,200 4.25 5.00 12.0 60,000m2 Sundbyberg C. 2,600 3,100 4.00 4.75 5.5
Arenastaden 3,000 3,700 3.50 4.25 2.0
Solna Business Park 2,600 3,000 4.00 4.75 16.0
Solna Strand 2,500 3,000 4.25 5.00 4.0
Frösunda incl. Järva Krog 2,500 3,000 4.00 4.75 9.5 and Haga Norra New supply TRANSACTIONS 2021
Submarket Date Property Purchaser Vendor Size, m² Price, MSEK Price, SEK/m² Yield, %
Nacka, Sickla Strand Dec-20 Sicklaön 145:16 Torslanda Property Investment Serafim Fastigheter 1,400 60 42,900 -
Stockholm, Västberga Dec-20 Vreten 8, 17 & 25 Capman Väsö Fastigheter 30,000 Conf. Conf. Conf.
Stockholm, The Dec-20 Sandhagen 9 (leasehold) Castellum Humlegården 5,700 298 52,600 Conf. Meatpacking District
Solna, Järva Krog Dec-20 Sadelplatsen 1 Capman Fabege 6,400 260 40,800 Conf.
~4.20 Solna, Frösunda Nov-20 Kansliet 1 Torslanda Property Investment Gelba 2,200 95 43,200 (initial)
LETTINGS MARIEVIK - LILJEHOLMEN Submarket Date of publication Property Property owner Tenant Lease size, m² Start of lease SICKLA Solna, Järva Krog Mar-21 K11 NCC Trafikverket 900 Dec-21 HAMMARBY Solna, Järva Krog Feb-21 K11 NCC Puma 1,800 Oct-21 SJÖSTAD Solna, Järva Krog Jan-21 K12 Fastpartner Philips 1,000 Summer 2021
Solna, Huvudsta Jan-21 Gräslöken 1 Castellum Cabonline 4,500 -
Solna, Frösunda Jan-21 Hilton 5 Fastpartner Link Medical 500 - ESG focus on sustainability and utilisation GLOBEN NEW DEVELOPMENTS of physical space, which from a practical perspective makes flexible options Net assignable Submarket Project Property owner Date of completion Occupancy rate office area, m² interesting by creating efficiency to
Solna, Haga Norra HQ Bilia Fabege Q1 2021 3,000 ~100% further support the green shift.
Stockholm, Bromma Hangar 5 NCC Q4 2021 30,000 ~50% Sundbyberg C. Nya kronan Vasakronan Q4 2021 25,000 ~100% Annie Lilja Solna, Ulriksdal Ledvolten Peab Q4 2021 5,000 ~70% Deputy Head of Strategic Advisory Järfälla, Barkarby Bas Barkarby Atrium Ljungberg Q1 2022 6,000 ~10% +46 709 382 482 [email protected] 10 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 GBG CITY GOTHENBURG
TRENDS 4.5%
MARKET DATA
Submarket Average rent, SEK/m² Prime rent, SEK/m² Yield, low % Yield, high % Vacancy rate, % Overall vacancy rate
CBD 2,800 3,400 3.70 4.25 4.5 2 NORRA ÄLVSTRANDEN Lindholmen 2,200 2,800 4.00 4.50 5.5 130,000m
Gårda, Heden & Stampen 2,200 2,800 4.00 4.50 3.0 CENTRALENOMRÅDET & Masthuggskajen 2,100 3,100 4.00 4.50 9.5 GULLBERGSVASS Mölndalsvägen 1,750 2,450 4.25 4.65 6.0
Norra Älvstranden 1,800 2,700 4.25 4.65 10.0 LINDHOLMEN
Centralenområdet & Gullbergsvass 2,200 3,000 4.00 4.50 7.0 GÅRDA, HEDEN & New supply CBD TRANSACTIONS 2021 STAMPEN
Yield, Submarket Date Property Purchaser Vendor Size, m² Price, MSEK Price, SEK/m² MASTHUGGSKAJEN %
Next Step Group & Mölndal Mar-21 Part of Tingshuset 15 Fujirebio 8,400 Conf. Conf. Conf. Vectura Fastigheter Älvstranden Utveckling Lindholmen Mar-21 Part of Lundbyvassen 4:6 Atrium Ljungberg 22,000 448 20,300 - AB
Mölndal Aug-20 Snödroppen 2 & Tulpanen 3 Regio Nyfosa 78,000 1,037 13,300 -
Gamlestaden Jun-20 Gamlestaden 2:8 Samhällsbyggnadsbolaget Nyfosa 20,900 400 19,200 -
CBD Jun-20 Inom Vallgraven 8:14 & 20:8 Balder Family Bräutigam 4,000 Conf. Conf. Conf.
LETTINGS
Submarket Date of publication Property Property owner Tenant Lease size, m² Start of lease
Annedal Mar-21 Property on Haraldsgatan Castellum Plikt- och prövningsverket 5,000 Jun-22
CBD Mar-21 Lorensberg 56:8 Wallenstam Handelsbanken 800 Spring 2021 MÖLNDALSVÄGEN Gullbergsvass Feb-21 Gullbergsvass 6:24 Bygg-Göta The Techno Creatives 1,300 Apr-22
CBD Feb-21 Inom Vallgraven 69:5 Wallenstam Trafikverket 1,500 Summer 2021
Heden Jan-21 Property on Sten Sturegatan Wallenstam JetShop 700 Summer 2021
NEW DEVELOPMENTS Currently in an acquisition process? Let us provide you with Net assignable Submarket Project Property owner Date of completion Occupancy rate office area, m² market information to ease your Mölndalsvägen Entré Kallebäck Wallenstam Q3 2021 13,000 ~20% decision. Gårda Gårda Vesta, Gårda 2:12 Platzer Q3 2021 26,600 ~95% CBD Merkurhuset, Inom Vallgraven 49:1 Platzer Q3 2021 5,400 ~60% Peter W-O Berglin CBD Platinan, Gullbergsvass 3:3 Vasakronan Q4 2021 / Q1 2022 35,000 ~75% Head of Valuation & Strategic
CBD Strömshuset, Inom Vallgraven 22:15 Vasakronan Q4 2021 1,800 - Advisory, Gothenburg +46 738 322 122 [email protected]
12 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 MALMÖ VÄSTRA HAMNEN CITY MALMÖ NEW CBD
TRENDS 9.5% 20,000m2 OLD CBD
Overall vacancy rate New supply MARKET DATA 2021
Submarket Average rent, SEK/m² Prime rent, SEK/m² Yield, low % Yield, high % Vacancy rate, %
Old CBD 2,100 2,700 4.25 5.00 11.0
New CBD 2,600 3,100 4.00 4.75 6.5 Hyllie 2,400 3,000 4.25 4.75 5.5 Regardless if you are interested in Västra Hamnen 2,200 2,700 4.50 5.25 12.0 acquiring or disposing real estate, contact us for an unconditional TRANSACTIONS meeting.
Submarket Date Property Purchaser Vendor Size, m² Price, MSEK Price, SEK/m² Yield, %
Kirseberg Jan-21 Grävstekeln 2 Klövern Bjoernoe Holding 1,900 Conf. Conf. Conf. Mikael Stellinger New CBD Dec-20 Smörkontrollen 1 Executive Property AB Cydonia 9,600 Conf. Conf. Conf. Partner, Capital Markets Old CBD Jun-20 Von Conow 57 Castellum Samhällsbyggnadsbolaget 6,800 216 31,800 ~5.00 +46 706 078 046
Old CBD Dec-19 Prästgårdarna 5 * Private investor Private investor 10,900 276 25,300 - [email protected]
New CBD Nov-19 Sejen 3 Vasakronan Skanska 6,700 430 64,200 ~4.25
*Source: Datscha
LETTINGS
Submarket Date of publication Property Property owner Tenant Lease size, m² Start of lease
New CBD Mar-21 Aqua Skanska Trafikverket 6,000 Summer 2022
Hyllie Mar-21 The Point Peab Telenor 600 Aug-21
Västra Hamnen Feb-21 Hall 7 Skandia Fastigheter OneMed 16,400 Autumn 2021
Hyllie Feb-21 Hyllie terrass Skanska AAK 1,400 Spring 2023
Hyllie Jan-21 Eden Kungsleden Diaverum 2,200 Sep-21
NEW DEVELOPMENTS
Net assignable Submarket Project Property owner Date of completion Occupancy rate office area, m²
Hyllie Eden by Kungsleden Kungsleden Q3 2021 7,900 ~85%
Hyllie Fabriken, Hyllie 4:2 Hub Park Q3 2021 3,500 ~100%
Malmö Arena phase 3, part of Hyllie Parkfast Q4 2021 8,000 - Arenan 5 Fosie Beckhoff HQ Wihlborgs Q2 2022 1,800 ~100% HYLLIE New CBD Aqua, Löjan 2 Skanska Q3 2022 9,600 ~80%
14 Cushman & Wakefield | Office Snapshot Sweden Q1 2021
1. Luleå 12. Linköping Prime Yield: 5.40 Prime Yield: 4.90 Average Rent: 1,400 Average Rent: 1,800 SWEDEN Prime Rent: 2,000 Prime Rent: 2,800 2. Umeå 13. Karlstad Prime Yield: 5.30 Prime Yield: 5.40 SWEDEN Average Rent: 1,500 Average Rent: 1,400 REGIONAL Prime Rent: 2,200 Prime Rent: 2,100
1 3. Östersund 14. Jönköping Prime Yield: 5.40 Prime Yield: 5.00 Average Rent: 1,300 Average Rent: 1,600 CITIES Prime Rent: 1,900 Prime Rent: 2,500
KEY FIGURES OF SELECTED REGIONAL CITIES* 4. Sundsvall 15. Borås Growth of Share of Business creation - Prime Yield: 5.40 Prime Yield: 5.40 Disposable Share with Population, population Unemployment Employment population in number of business Municipality income per post-gymnasial Average Rent: 1,500 Average Rent: 1,200 Q4 2020 - Q4 2019 to rate, Feb 2021 OIS sectors working age - created per 1,000 capita, kSEK education Q4 2020 20-64 years inhabitants 2 Prime Rent: 2,000 Prime Rent: 1,900
Stockholm 975,551 0.2% 8.4% 363.2 47% 63% 55% 15.7
Gothenburg 583,056 0.7% 9.8% 330.4 34% 63% 49% 11.7 5. Gävle 16. Gothenburg Malmö 347,949 1.1% 15.6% 279.4 35% 62% 46% 12.7 3 Prime Yield: 5.40 Prime Yield: 3.70 Uppsala 233,839 1.3% 7.8% 323.1 28% 61% 53% 9.7 Average Rent: 1,300 Average Rent: 2,800 Linköping 164,616 1.0% 7.2% 328.4 31% 60% 49% 8.8 Prime Rent: 1,900 Prime Rent: 3,400 Örebro 156,381 0.4% 9.6% 320.3 25% 58% 41% 10.1 4 Västerås 155,551 1.0% 10.7% 335.3 26% 57% 39% 10.1 Helsingborg 149,280 1.0% 12.1% 318.2 26% 58% 37% 11.0 6. Uppsala 17. Växjö Norrköping 143,478 0.2% 11.6% 320.0 26% 57% 34% 9.4 Prime Yield: 4.25 Prime Yield: 5.40 Jönköping 142,427 1.0% 6.6% 337.1 23% 58% 39% 9.7 Average Rent: 2,100 Average Rent: 1,400 Umeå 130,224 1.0% 6.4% 322.1 24% 61% 51% 8.8 Prime Rent: 3,100 Prime Rent: 1,900
Lund 125,941 0.8% 7.6% 293.7 28% 61% 65% 9.7
Borås 113,714 0.5% 8.7% 327.7 24% 57% 33% 10.1
Halmstad 103,754 1.0% 9.3% 326.9 22% 57% 38% 9.9 7. Västerås 18. Kalmar 5 Prime Yield: 5.00 Prime Yield: 5.50 Gävle 102,904 0.5% 11.1% 335.2 27% 56% 35% 8.5 Average Rent: 1,600 Average Rent: 1,300 Sundsvall 99,439 0.0% 8.6% 346.6 30% 55% 35% 8.9 Prime Rent: 2,600 Prime Rent: 1,800 Växjö 94,859 0.8% 9.0% 328.0 24% 57% 42% 8.8
Karlstad 94,828 1.0% 8.6% 326.2 29% 58% 44% 9.2 6 Luleå 78,549 0.6% 7.3% 345.2 29% 58% 42% 8.8 7 8. Stockholm 19. Halmstad Kalmar 70,329 1.2% 8.0% 328.6 26% 57% 40% 9.0 13 Prime Yield: 3.30 Prime Yield: 5.40 Östersund 63,985 0.3% 7.1% 323.5 32% 56% 39% 10.2 11 8 Average Rent: 6,200 Average Rent: 1,400 Nyköping 57,071 0.8% 9.7% 337.7 21% 53% 32% 9.6 Prime Rent: 8,000 Prime Rent: 1,900 Sweden 10,379,295 0.5% 8.7% 305.5 26% 57% 37% 10.7 9 *Most recent available information 10 **OIS - office intensive sectors 9. Nyköping 20. Helsingborg TRANSACTIONS 12 Prime Yield: 5.60 Prime Yield: 5.10 Average Rent: 1,200 Average Rent: 1,600 16 Prime Rent: 1,800 Prime Rent: 2,400 15 Submarket Date Property Purchaser Vendor Size, m² Price, MSEK Price, SEK/m² 14
Uppsala Mar-21 Svartbäcken 52:9 Samhällsbyggnadsbolaget Storebrand Fastigheter AB 23,900 ~690 28,800
Gävle Mar-21 Portfolio, 2 properties * Diös Ersand Invest 7,900 103 13,100 10. Norrköping 21. Lund Prime Yield: 5.10 Lund Jan-21 Harven 2 Klövern Unikum Holding 3,200 Conf. Conf. Prime Yield: 5.00 Average Rent: 1,600 Ångkvarnen, part of Kungsängen 17 Average Rent: 1,600 Uppsala Dec-20 Atrium Ljungberg Besqab & Ikano 9,300 85 9,100 18 22:2 19 Prime Rent: 2,400 Prime Rent: 2,500
Uppsala Dec-20 Mejeriet, Kvarngärdet 33:2 Atrium Ljungberg Parkgate Fastigheter 2,500 149 59,600
Västerås Dec-20 Manfred 8 Castellum Kungsporten 9,000 194 21,500 20 11. Örebro 22. Malmö *Source: Datscha Prime Yield: 5.00 Prime Yield: 4.00 21 Average Rent: 1,600 Average Rent: 2,300 22 Prime Rent: 2,400 Prime Rent: 3,100
Cushman & Wakefield has comprehensive data with Prime yield represents the market based return on an investment for a high quality (A grade) property with market based rental terms that is situated in the best location within a Staffan Dahlén predefined market area (assuming there is always existing demand and available supply). The yield figure reflects the net income received by an investor, expressed as a percentage key figures and information of all municipalities in of total capital value. The market yield is primarily estimated based on an analysis of comparable sales. If no such sales exist the yield may be estimated based on general market Sweden, ready to be delivered. Head of Strategic Advisory knowledge. +46 702 004 478 Average rent is defined as the passing rent for existing contracts of standard size and average quality units (500+ sq m in the larger city regions and 300+ sq m in regional cities) [email protected] within the predefined market (submarket) area. The defined rent excludes additional charges for heating, property tax and other property related items.
Prime rent is defined as the average top quartile rent for recently signed contracts of well located, high quality (A grade), standard size units (500+ sq m in the larger city regions and 300+ sq m in regional cities) within the predefined market (submarket) area. The defined rent excludes additional charges for heating, property tax, rent-free periods and other 16 Cushman & Wakefield | Office Snapshot Sweden Q1 2021 property related items. Wework, Oslo Haakon VIIs gate GLOBAL OUTLOOK
What are the global trends for flexible space? Recent insights from Cushman & Wakefield: Cushman & Wakefield provides top global insights to future trends, including mega trends such as COWORKING 2020: WHAT´S NEXT ON THE FLEXIBLE WORKSPACE HORIZON sustainability, digitalisation and behaviour changing impacts. As the pandemic situation returns to a The report reveals that Flexible Workspace could offer the answer for many UK occupiers somewhat normal state post-vaccinations, the focus facing an uncertain future by providing a multi-faceted, flexible solution to their safe has already shifted to planning for the future. It has return to the office in the short-term. It also takes a look at what the potential challenges become more relevant for tenants to prepare for the and opportunities are for the sector in the medium to long term, anticipating that the office return and discussions on how to build office underlying value of offices remains, but that perhaps the structure of where and how attraction to better match new demands ahead are people work may need to change. held frequently with our clients.
The flexible office space is highlighted in research VALUATION OF FLEXIBLE WORKSPACE within the Cushman & Wakefield organisation and ranges from recent trends to value implications. A White paper on realising the Value of Flex. Flexible workspace has firmly cemented study of the investment market in the US in 2018 gave its place in the real estate market and COVID-19 forcing many companies and their positive yield gaps for assets comprising of 15-30% employees to reconsider how they want to work in the future, an even more vital flexible office space. component of the workplace ecosystem. Cushman & Wakefield also assists clients wanting to develop flexible office solutions within the INDEGO PRIOR US STUDY SUPPORT POSITIVE VALUE IMPLICATIONS FROM FLEXIBLE SPACE brand, our own flexible office service. The Cushman & Wakefield study from 2018 support investors being comfortable with a coworking space ratio of 15-30% of a building, giving positive yield effects. The ratio is increasingly perceived as a strategic necessity by landlords and investors to attract strong tenants. Cushman & Wakefield has excellent global insight on real estate market trends, closely covering the capital and occupier markets. CUSHMAN & WAKEFIELD FLEXIBLE OFFICE OPERATOR INDEGO Reach out to Annika for further information. Our Cushman & Wakefield team of industry experts work with you and your team to develop a product and brand that is right for your buildings and delivers on your Annika Edström objectives. Head of What’s Next / Research +46 702 345 925 [email protected] READ MORE ON GLOBAL COWORKING TRENDS HERE
Cushman & Wakefield | Office Snapshot Sweden Q1 2021 19 7A Posthuset OFFICE MARKET SWEDEN
FLEXIBLE WORK IS BECOMING MORE OF A VIABLE OPTION WHEN CORPORATES ARE GETTING DIGITAL STRUCTURES AND HABITS TO SUPPORT WORK OUTSIDE OF THE TRADITIONAL OFFICE SPACE.
Cushman & Wakefield | Office Snapshot Sweden Q1 2021 21 For further information, please reach out to:
Anders Elvinsson Annika Edström Head of Valuation & Strategic Advisory Head of What’s Next / Research +46 722 479 414 +46 702 345 925 [email protected] [email protected]
Staffan Dahlén Annie Lilja Head of Strategic Advisory Deputy Head of Strategic Advisory +46 702 004 478 +46 709 382 482 [email protected] [email protected]
Peter W-O Berglin Marie Cronström Head of Valuation & Strategic Advisory, Deputy Head of Sweden Gothenburg +46 738 322 122 +46 706 064 110 [email protected] [email protected]
Ola Jacobsson Mikael Stellinger Partner, Capital Markets Partner, Capital Markets +46 703 813 260 +46 706 078 046 [email protected] [email protected]
Gustaf Benndrof Åsa Björck Head of Tenant Representation Head of Project & Development Services +46 767 203 418 +46 725 239 400 [email protected] [email protected]
Rikard Skoglund Hanna Käck Head of Agency Leasing Analyst +46 707 543 313 +46 730 656 215 [email protected] [email protected]
Frida Carlsson Johan Östberg Analyst Analyst +46 734 265 512 +46 767 203 466 [email protected] [email protected]
www.cushmanwakefield.se
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