9% drop in office take-up in Amsterdam
The take-up for office space in Amsterdam in 2017 was down 9% on the previous year. The take-up in 2016 was 347,000 sq. m. In 2017, the number of rented square metres dropped to 318,000. Despite this decrease, the take-up in 2017 was still above the 2012-2016 five-year average of 286,000 sq. m. This means that the rental market in Amsterdam is still thriving. These are the results of recent research by international real estate advisor CBRE.
The first effects of the shortage on the office market in Amsterdam are already visible in the take-up figures. The figures stand in contrast with other large European capital cities, where the rental of office space has increased significantly. Businesses are having difficulty finding suitable premises in Amsterdam due to the limited amount of office space available. This will put further strain on Amsterdam’s position as an international competitor, as the influx of new businesses from outside the Netherlands will decline. Additionally, businesses already located in the capital will be more inclined to look for alternatives in other large cities in The Netherlands.
Significant growth in Utrecht and The Hague
The research figures published by CBRE also show that Utrecht and The Hague are experiencing considerable growth. The take-up in Utrecht increased from 107,620 sq. m. in 2016 to 131,473 sq. m. in 2017 - an increase of 22%. The take-up in The Hague doubled. In 2016, the take-up was 54,255 sq. m., compared to 133,465 sq. m. in 2017. That is an increase of 109%.
Utrecht will continue to profit from the shortage on the office market in Amsterdam. We have recently seen Vodafone/Ziggo relocate to Utrecht from Maastricht and Amsterdam. In The Hague, the Dutch government is back on the real estate market after years of being away. This has resulted in the expansion of office space for civil servants, at the ministries in particular.
Slight increase in Rotterdam and Eindhoven
The take-up in Rotterdam increased by 6% from 85,159 sq. m. in 2016 to 90,290 sq. m. in 2017. The take-up in Eindhoven also showed a slight increase of 6%. In 2016, the take-up was 64,476 sq. m., compared to 68,455 sq. m. in 2017.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.