Take-up Amsterdam office market recovers slightly

The take-up of office space in the greater Amsterdam area reached 87,000 m2 during the third quarter of 2002, an increase of 41,000 m2 compared to the quarterly average during the first half of this year.

However, take-up is well below last yearÂ's quarterly average of 110,000 m2. Supply increased by 6% during the third quarter of this year, which seems to level off compared to first (38%) and second (24%) quarter of 2002.

As per September 1, 2002 supply amounted to 1.19 mln m2, an increase of 6% compared to July 1, 2002. During the first six months supply increased by 73%. Total supply represents 19% of total availible space, the highest level since ten years.

Take-up, in total 40 transactions, amounted to 87,000 m2 during the third quarter, an increase of 66% compared to the second quarter. Highest rental price was in the World Trade Center, where Japanese telecom company DoCoMo agreed to pay € 385 per m2. The lowest rental price was agreed in Diemen, where The World Miracle Church rented space at € 90 per m2.

Rental prices remained stable, although incentives, such as free rental period, flexible leases and re-decoration contributions, increased.

A total of 100,000 m2 of new office development was delivered on the market, well above last yearÂ's average.

Boer Hartog Hooft only expects an improvement in the Amsterdam office market during 2003, mainly fired by replacement transactions. Today, for those companies whose lease contracts expire it seems perfect to rent better quality office space against more favorable prices.

(source: Boer Hartog Hooft)

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