Savills: Strong recovery for Netherlands office demand (NL)

Netherlands office markets of Amsterdam, Rotterdam and Utrecht have seen significant demand in H110. Take up rose to 94% in Rotterdam, compared to H109, totalling 89,000 m² and representing the highest increase recorded amongst the four largest Dutch agglomerations.


The Hague saw a decline in total leasing space transacted by 42% when compared to H109.

In Amsterdam, take up increased by 36% totalling 132,000 m² whilst Utrecht saw lettings volumes increase by 16%. This demand was predominately driven by business services sectors in the two cities, whereas in Rotterdam the key driver was manufacturing and construction, transport and communication. The fourth agglomeration, being The Hague, conversely saw a decline in total leasing space transacted by 42% when compared to H109 due to the impact of less demand from public bodies.

Jeroen Jansen, Head of Research for Savills Netherlands, says: "Strong signs of recovery are apparent in three of the key agglomerations as rental values stabilized. Historically occupier demand in The Hague has been fuelled by public bodies and this market is now showing signs of being affected by the economic slowdown."

Despite the increase in demand, supply has also increased and vacancy rates stand at between 11.2% and 16.9% across these areas. However, rents and incentives remained stable over the period H110 with the highest rent recorded in Amsterdam South Axis at €340 m²/year, Utrecht's Maliebaan and Papendorp areas at €250 m²year, and Rotterdam's prime CBD rent alongside The Hague's Central and Beatrixkwartier areas with prices at €200 m²/year.

In terms of the investment market, volumes were up in 83% in H110 compared to H109, totalling €330 million, mainly boosted by two transactions in Q210 totaling €100 million. In The Hague, investments rose 27% comparing H110 to H109, with a large transaction signed by Deka Immobilien for €49.2 million. Utrecht levels also increased but Rotterdam's office market saw half year turnover at €25-30 million – a low figure compared to other cities.

Source: Savills

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