CBRE: “Utrecht growth driven by TMT sector”

The take-up of property (and especially offices) in Utrecht is growing and becoming increasingly varied. In addition to the traditional prevalence of government and financial services in the Cathedral city, property consultancy CBRE is increasingly seeing growth in businesses in commercial services and the Technology, Media & Telecom (TMT) sector. This trend accounts for a significant portion of the growing demand for office accommodation and falling levels of vacancy in Utrecht. This is revealed in CBRE’s ‘Property Perspective Utrecht’ published today.

In Utrecht, the commercial services sector still dominates the office accommodation market. In the period 2010-2017 (Q3), it accounted for 30% of all office accommodation leased. Perhaps less known is the fact that Utrecht is increasingly becoming a place where smaller TMT businesses can grow and where major high-tech companies are choosing to set up business. All of these companies are in search of suitable accommodation. In the period 2010-2017, the TMT sector accounted for as much as 16% of the take-up of office accommodation.

More office accommodation

The last five years have seen the TMT sector enjoy significant growth in Utrecht. In the period 2010-2017 (Q3), CBRE noted a takeover of almost 80,000 sq. m. of office accommodation in this sector. That accounts for 20% of the total take-up in Utrecht. In the period 2008-2013, take-up by businesses in the TMT sector was more than 65,000 sq. m. That was 16% of the total.

Leading names

The 'Cathedral city' is now home to some leading names in Dutch and international business, including Bol.com, Oracle, Ziggo/Vodafone, and Ingram Micro. The last two leased sizeable office accommodation in Papendorp in the final quarter of 2015 and the first quarter of 2016. Bol.com has been based in Papendorp since 2014. In autumn 2017, Ziggo/Vodafone also opted for Utrecht and transferred its business activities from Amsterdam and Maastricht to the city. Vodafone chose Hoog Catharijne in CBD for its new headquarters.

Small companies and start-ups

Alongside major high-tech companies, smaller less well-known businesses are opting for Utrecht as a place to set up business and to grow. These include Keylane, SnappCar, Skydreams, SURFnet, and GreenPeak. With these innovative and often fast-growing companies, the city is joining the ranks of the larger European office markets, such as Amsterdam, Berlin, and Stockholm, where the TMT sector is also the driving force behind growth in the offices market.