Amsterdam,
16
February
2015
|
12:55
Europe/Amsterdam

Dutch office market shows first signs of recovery

Investment volume rises by 90%

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The Dutch office market is showing an upward trend for the first time in years. In addition to an enormous growth in the investment volume, the first signs of recovery were also visible in the user market last year. This is evident from Office MarketView2014 of property advisor CBRE, which is published today.

The total investment volume last year was € 3.75 billion, which meant an increase of nearly 90% in comparison with the preceding year. Most of this increase can be attributed to foreign capital that has entered the Dutch market. This is mainly due to the entry of private equity parties which bought individual properties in the four largest cities (Amsterdam, Utrecht, The Hague and Rotterdam), as well as several large national portfolios. Kildare, for example, bought a substantial loan from Chalet Group, which included the real estate, and Lone Star took over a portfolio from the Dutch Office Fund from CBRE Global Investors.

Growth in occupancy

While the investment volume was at the highest level since 2007, the user market also saw a major improvement. The total occupancy volume rose by about 5% on an annual basis, and encompassed more than 1,100,000 m2 of office space. The vacancy level saw a slight drop, from nearly 7,400,000 sq m to just over 7,200,000 sq m. The four biggest cities accounted for roughly 55% of total occupancy, which means their share rose once again last year. Amsterdam had as much as 26% of the total occupancy volume last year.

Prospects

CBRE expects that the upward trend in the office market will continue.

Machiel Wolters, Director Research & Consulting CBRE
The prospects are good. We anticipate a continued interest from investors. And also a further rise in the occupancy rate of office space as a consequence of the economic growth and the increase of employment in offices in the Netherlands.
Machiel Wolters, Director Research & Consulting CBRE

Download the CBRE Office MarketView 2014 below.

Downloads

About CBRE

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.