Efficiency matters keep take-up up on the same level (NL)

The take-up of office space in the Netherlands has maintained reasonably over 2003 considering the trend of the market. The demand mostly came from concentrations and reorganizations and hardly from expansions. The trade and industry as well as the non-profit sector let replacing and more efficient office space.

The consequence of these efficiency matters is that the companies, which are moving, leave as much or sometimes even more office space behind than what they are taking into use. Also because of this the supply has increased further to a record high of 5.1 mln. m². The take-up of office space in the Netherlands over the last year was 1.4 mln. m², a decline of 12% compared to 2002. The non-profit sector once again was responsible for the larger part with 600,000 m², or 43%. The trade and industry and the secondary sector both were responsible for 300,000 m². This can be concluded from ‘ Cijfers in Perspectief 2004’ (Numbers in Perspective 2004), the annual real estate market research by DTZ Zadelhoff.

DTZ Zadelhoff doesn’t foresee a slight recovery of the demand for office space before the end of 2005. Taking into account the present high supply, the property realtor doesn’t expect a more balanced office market until 2008/2009.

The industrial property market has maintained relatively well over 2003 with a take-up of approx. 1.7 mln. m². Concentration movements and reorganizations were mostly responsible for these figures. This also caused the supply of industrial property to increase significantly to a level of over 6.5 mln. m². The largest part of this supply is obsolete buildings and will be hard to let.

On the retail space market the low faith of consumers and the decline in spending by households was mostly noticeable in the B-locations and the peripheral shopping centers. The demand for A1-locations stayed at the same level.

On the investment market for commercial real estate, DTZ Zadelhoff notes a similar amount of invested wealth as in 2002. The demand for qualitatively high investment objects remained high throughout 2003. The market was characterized by a shortage of suitable investment objects, being first class real estate with a long-term lease.

Source: DTZ Zadelhoff

Related News