STATE OF AFFAIRS RANDSTAD OFFICE MARKET 2017 REGIONS AMSTERDAM, THE HAGUE, ROTTERDAM, SCHIPHOL AND UTRECHT NVM BUSINESS RANDSTAD OFFICE MARKET 2017 THE AMSTERDAM REGION TRENDS IN OFFICE TAKE-UP PER DISTRICT 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 m2 Amsterdam Centre 39,500 26,000 32,500 46,500 53,500 57,000 44,000 42,000 92,000 25,000 Amsterdam Sloterdijk-Teleport 33,500 13,500 7,500 11,500 2,500 15,500 16,000 39,500 15,000 24,000 Amsterdam West 24,000 22,500 17,000 19,500 13,000 10,000 14,000 9,000 23,000 2,000 Amsterdam South Axis 35,500 46,000 75,500 26,500 37,000 57,500 34,000 35,500 69,500 15,000 Amsterdam Southeast 65,500 37,500 39,000 66,000 75,000 13,500 53,000 77,500 52,000 19,000 Amsterdam North 16,500 - 2,500 1,500 5,500 2,000 - - 9,000 1,500 Amstelveen 4,000 14,500 8,500 8,000 12,500 13,500 11,000 5,500 7,000 10,500 Diemen 6,000 - 500 5,000 - 5,500 8,000 - 1,000 - As the Dutch economy continued to thrive, office sales in a positive direction. Based on information available, and lease transactions have been exceptionally good there have been no lease transactions in Diemen in the TRENDS IN OFFICE SUPPLY PER DISTRICT in the Amsterdam region during the first six months of first six months of this year. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2017. More than 142,000 m² had been taken up m2 in total, the city of Amsterdam representing about Due to strong demand for office space, supply levels Amsterdam Centre 109,000 136,000 150,500 135,500 168,500 152,500 142,000 98,000 87,500 76,000 120,000 m². Demand for high-quality office space have dropped significantly in the city of Amsterdam, Amsterdam Sloterdijk-Teleport 160,000 178,000 204,000 182,500 229,000 230,000 218,000 174,000 144,000 105,000 Amsterdam West 186,000 208,000 164,000 184,000 187,500 149,000 155,500 148,000 96,000 82,000 was strong particularly within Amsterdam’s ring road especially in Amsterdam Sloterdijk-Teleport and Amsterdam South Axis 147,500 131,000 91,500 81,500 72,000 70,500 131,000 149,000 100,000 89,000 area, and especially from the IT and media sectors. Amsterdam Southeast. In the latter, one of the reasons Amsterdam Southeast 282,500 292,000 334,000 331,000 279,000 350,000 326,000 223,000 174,500 116,000 As a result, lease contracts have been signed with e.g. is that recently many offices have been taken off the Amsterdam North 4,000 15,000 13,500 18,500 21,500 25,500 31,000 26,000 25,500 23,500 Uber, Netflix and Trivago. One remarkable transac- market to turn them into hotels or apartments instead. Amstelveen 109,500 126,000 144,500 159,500 171,000 200,000 202,000 185,000 100,000 79,500 tion in this regard has been the lease of a 5,000 m² Also availability seriously diminished in Amsterdam’s Diemen 69,000 73,500 72,500 65,000 38,500 28,500 18,000 21,000 17,000 18,500 office space by Bestseller on the top floor of V&D city centre and on the IJ banks, even though a serious department store’s former premises on Rokin, for it lack of high-quality office space hampered the market. AVAILABILITY RATES PER DISTRICT MID 2017 Source: NVM PRIME RENTAL LEVELS PER DISTRICT MID 2017 Source: NVM requires retail space in Amsterdam’s city centre to Supply also dropped in Amstelveen, remaining steady be transformed into offices. Another interesting detail in Diemen. % € is the fact that the office market in the Dutch capital Amstelveen Amsterdam South Axis Amsterdam South Axis Amsterdam Centre continued strongly towards more flexible workspaces. So far Amsterdam’s office market has hardly benefited Amsterdam North Amsterdam Southeast Companies like Spaces, Regus, The Office Operators, from the Brexit. Save for a number of smaller finan- Amsterdam West Amsterdam North rent24 and KleinKantoor have all signed new contracts cial institutions, companies clearly prefer Frankfurt and Amsterdam Southeast Amsterdam Sloterdijk-Teleport to further expand their flexible office concepts. Also Dublin. Also the news came that the office construc- Diemen Amstelveen several similar parties were actively seeking suitable tion freeze, a fact in Amsterdam since 2011, was Amsterdam Sloterdijk-Teleport Amsterdam West Amsterdam Centre office space. undone in July, allowing for new construction once Diemen 0 5 10 15 0 50 100 150 200 250 300 350 400 450 again. Locations that qualify are Houthavens, South Take-up levels climbed not only in Amsterdam’s city Axis, ArenAPoort, Amstel Station and the Marine site. centre, but also in the area known as Sloterdijk-Tele- Bearing in mind the serious lack of high-quality office TAKE-UP AND SUPPLY IN AMSTERDAM Source: NVM TYPICAL RENTAL BANDS PER DISTRICT MID 2017 port, although here the main reason has been an space, this is good news indeed. 18,000 m² expansion by energy company Alliander. x 1,000 m2 € € 1,200 Take-up in the South Axis business district was slightly Scarcity on Amsterdam’s office market and strong Amsterdam Centre 200 375 1,000 Amsterdam Sloterdijk-Teleport 125 195 down on the previous year and also relatively fewer demand for office space have pushed up rents, 800 Amsterdam West 120 175 transactions have been realised in Amsterdam South- causing incentives to plummet at the same time in some 600 Amsterdam South Axis 300 420 east. Nevertheless, the banking sector was clearly areas. Especially in the city centre, investors hardly Amsterdam Southeast 125 225 400 Amsterdam North 125 215 visible with e.g. KAS BANK renting approximately had to offer any whatsoever. Outside the ring road 200 6,000 m² and Crédit Agricole about 5,000 m² of area, incentives of 10 up to 20% were still common, Amstelveen 135 195 0 Diemen 100 130 office space. In Amstelveen, letting out 6,250 m² to depending on the contract duration and quality of the 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 an international school allowed office take-up to move office involved. Supply Take-up TRENDS IN OFFICE TAKE-UP PER DISTRICT 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 m2 NVM BUSINESS RANDSTAD OFFICE MARKET 2017 The Hague Centre 26,000 19,500 35,000 12,000 28,000 23,500 32,500 21,500 31,000 14,000 The Hague Benoordenhout 500 500 3,500 - 17,000 3,500 4,000 12,500 5,500 1,000 The Hague Bezuidenhout 2,000 32,500 41,000 21,500 11,000 26,000 11,500 10,000 13,500 3,000 The Hague Binckhorst 15,000 2,500 - 1,500 1,500 4,000 1,000 5,000 2,500 - The Hague Congresgebouw 2,000 9,500 1,000 7,000 1,500 4,500 2,000 2,500 1,500 - The Hague Laakhaven 2,500 2,000 - 500 9,000 2,500 6,000 4,500 6,500 - THE HAGUE REGION Rijswijk 15,500 7,500 13,000 5,500 10,000 10,000 9,500 6,500 8,000 7,000 Leidschendam 500 1,000 - 1,500 1,500 1,000 - - 500 500 Voorburg - 1,500 - 5,000 4,000 3,500 500 1,500 3,500 500 Delft 15,500 7,500 6,500 6,500 8,000 6,000 8,500 12,000 16,000 6,500 Zoetermeer 22,500 14,500 11,500 8,500 23,000 10,500 6,000 26,500 22,500 500 TRENDS IN OFFICE SUPPLY PER DISTRICT 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 m2 The Hague Centre 78,000 111,500 135,500 139,000 138,500 164,500 152,000 161,000 157,000 145,000 The Hague Benoordenhout 37,000 42,000 56,500 46,000 49,000 68,000 63,000 61,500 33,500 32,500 The Hague Bezuidenhout 53,000 62,000 50,000 52,000 66,500 112,500 120,500 132,000 52,500 63,500 The Hague Binckhorst 45,500 70,000 84,500 84,000 85,000 78,000 81,000 86,000 67,500 70,000 The Hague Congresgebouw 17,000 31,000 34,500 27,500 33,000 30,500 29,500 25,000 11,500 11,000 The Hague Laakhaven 17,000 37,000 40,500 53,000 70,000 58,500 38,000 41,500 38,000 35,500 Rijswijk 135,500 189,500 193,000 221,500 244,500 243,500 242,000 254,500 186,000 193,000 Even though take-up numbers did not quite tell, During the first six months of 2017, the supply of office Leidschendam 40,500 46,000 46,000 44,000 45,500 27,500 27,500 11,500 10,500 10,500 demand for offices in the Hague region has intensi- space has modestly diminished in The Hague region. Voorburg 23,000 28,500 30,500 29,000 31,500 29,000 12,500 12,000 16,500 13,000 fied during the first six months of 2017. It has undeni- This could mainly be attributed to Zoetermeer and Delft 4,000 32,000 35,000 39,500 36,500 44,500 56,500 68,000 56,500 60,500 Zoetermeer 83,000 102,000 132,000 130,000 135,500 138,000 136,500 124,500 137,500 119,500 ably grown in The Hague itself, and many more lease The Hague, because during this period the amount of transactions have been signed involving high-quality space available slightly climbed in Delft and Rijswijk.