Q1 Office take-up in Amsterdam achieves new record since 2012
The take-up of office space in Amsterdam in the first quarter of 2017 reached its highest level since 2012. Although the first three months of the year generally see low levels of leasing activity, 2017 has enjoyed a flying start. Figures from commercial property and real estate advisor CBRE reveal that the first quarter saw a total of 71,800 sq.m. of office space let, a new record since 2012.
In the office locations in Amsterdam Zuidoost, Sloterdijk, Oost and the Zuidas area of the city particularly high numbers of new leases were agreed. Most of the space is being let to companies in the telecom, media and technology sector and in financial services. For example, Uber agreed a lease on 8,400 sq.m. of office space in The Cloud building, close to Amstel station and 6,000 sq.m. in De Entree 500 in Amsterdam Zuidoost were let to Kas Bank.
These figures confirm the trend in the market we have been observing for some time: a rapidly declining supply of office space in the Amsterdam region as a result of a sharp increase in take-up. This is causing a further acceleration in rental price increases. Last year, we saw rental prices increase by an average of 12%. The lack of new construction and expectations that 2017 will see a record take-up will further reinforce this trend. A similar trend is at play in European cities such as Stockholm and Berlin, where office space has been limited for several years now. This has resulted in sharp increases in rental prices of 40% and 20% respectively in the last three years.
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.