Office Market Report The Netherlands

Transcription

1 Office Market Report 2014 The Netherlands

2 THE NETHERLANDS Office space take-up rates stabilized in 2014 compared to A take-up volume of 1.02 million square meters signifies an end to years of decline. Nevertheless, a robust recovery is not expected in the foreseeable future. Improving economic conditions may lead to an increase in the number of transactions, but office automation and more efficient use of office space will also mean that companies will require less office space, resulting in a decline in the volume of transactions. Approximately 60% of the total take-up in the Netherlands in 2014 could be ascribed to the five major urban regions, with over one quarter taking place in the Amsterdam region. Outside of these regions, transaction activity was especially brisk in the cities of Arnhem (30,000 m²), Breda (25,000 m²) and Den Bosch (24,000 m²). Public sector agencies were primarily responsible for take-up in these cities. Business service providers are mainly concentrated in the country s major cities. The three largest sectors in the office market were the sector, business services and the public sector. Demand is increasing from the sector 08 thanks 09 to the 10 rapid 11 growth of technology companies. The other two sectors are experiencing a decline in the number of locations, often accompanied by a reduction of the total number of square meters. Supply declined slightly from 7.21 million m² to 7.18 million m². This was due to conversions in urban areas and limited new construction. Nearly every major transaction among large businesses is characterized by a move to significantly smaller accommodations as they recognize the need to shed floor space. These concealed vacancies may impact the market, causing supply to rebound. 1% 5% 6% 23% 9% 13% 22% 20% Wholesale & retail trade, hotels & catering Transport & Tourism Take-up x1,000 m 2 Take-up H Office Market Report 2014 The Netherlands

3 THE NETHERLANDS AVERAGE RENTAL RATES A7 8 AMSTERDAM P.4 8 THE HAGUE P.5 Average ROTTERDAM P.7 Average A4 A Average 180 A1 6 UTRECHT P.8 Average A50 A1 7 EINDHOVEN P.6 Average 120 Top 10 office transactions the Netherlands 2014 MUNICIPALITY PROPERTY NAME ADDRESS M² USER 1 Amsterdam Haarlerbergpark Haarlerbergweg ,500 ING Bank 2 Utrecht WTC Papendorp Papendorpseweg ,000 Bol.com 3 Amsterdam Porcellis Danzigerkade 13,000 PVH Europe t.b.v. Calvin Klein 4 The Hague De Artillerie Kanonstraat 1 12,000 Nationale Politie 5 Arnhem Mariëndaal Center of Excellence Utrechtseweg ,000 DNV GL 6 Amersfoort Between Smallepad 32 10,000 FrieslandCampina 7 Breda - Chasséveld 17 9,700 UWV 8 Amstelveen Ten Thirty Burgemeester Rijnderslaan ,000 Atos 9 Rotterdam Central Post Office Delftseplein ,000 LyondellBasell 10 Amsterdam Atrium Zuidtoren nieuwbouw Strawinskylaan ,000 CMS Derks Star Busmann 3 Office Market Report 2014 The Netherlands

4 AMSTERDAM The 2014 take-up volume in the Amsterdam region was at the same level as in A total of nearly 270,000 m² of office space was taken up. The Amsterdam region represents more than one quarter of nationwide volume, making it the most important region for office space. More than 40% of take-up in the Amsterdam region took place in the Amsterdam West and Southeast districts, which were in the doldrums just a few years ago. ING was responsible for a large portion of Nederland take-up in the Amsterdam Southeast district. There, the bank leased 23,500 m² in the Haarlerbergpark office building, which is located just north of the A9 motorway. Furthermore, PVH Europe leased 13,000 m² of office and showroom space on behalf of Calvin Klein at the Danzigerkade location in Amsterdam s Houthavens area. Amsterdam evolved further in 2014 as a sought-after location for Technology, Media and Telecommunications companies. Almost 30% of the uptake in the region could be ascribed to companies in this sector, who exhibit a strong preference for locations in Amsterdam s city centre. Examples include the lease transactions by Booking.com (10,000 m² in total) and Travelbird (approx. 6,000 m²). The supply of office space in the Amsterdam region has fluctuated in recent years between 1.4 and 1.5 million m². There was a slight increase Amsterdam in supply in Amsterdam proper, while the suburbs booked a slight decline. This decline in supply in the suburb of Amstelveen was primarily due to the lease by Atos in the former KPMG office building, which had been vacant since The Dam, another office building located in the Sloterdijk area that had been vacant for quite some time, will be converted into a congress hotel x1,000 m 2 Take-up H Take-up Rental rates by district 4% 4% A % 30% 650 A10 Den haag 600 Centre High 300 p 13% Sloterdijk area High 195 q Average 145 Low 85 q 300 A10 Average 230 p Low % % Wholesale & retail trade, hotels & catering Schiphol area High A4 Eindhoven 325 Average 150 Low South Axis High 350 p 240 Average 310 p Low Southeast High 190 p Average 145 Low 80 A10 A1 p q Rental development last 6 months 4 Office Market Report 2014 The Netherlands

5 7100 THE HAGUE Nederland Over 97,700 m² of office space was taken up in the region of The Hague in This is a significant decrease compared to 2013, when more than 130,000 m² was taken up. Major transactions were largely lacking in 2014, partly because of limited activity on the part of the national government. Nearly 60% of the 2014 take-up volume in The Hague took place in the Beatrixkwartier district and in the area around the Central Station. The largest transaction was by the National Police Force, a new organization created Amsterdam following the merger of the regional police forces. This transaction concerned the purchase of the De Artillerie office building, measuring 12,000 m². The public sector accounts for over 40% of the total take-up volume in this region. Contributing to this take-up in 2014 were transactions in The Hague by the aforementioned National Police Force (12,000 m²), the Province of Zuid-Holland (4, m²), Staedion (3,650 m²) and The Hague University of Applied Sciences (3,000 m²). The public sector s influence on take-up volumes in the suburbs of Rijswijk and Leidschendam-Voorburg is far less. In these areas, business services are the most important sector. The supply of office space in the region (675,000 m²) at the end of 2014 was on par with mid In the City of The Hague proper, supply increased by approx. 35,000 m². This increase could be attributed primarily to the availability of additional square meters in the former KPN office building Den haag Haagse Veste IV. Various office buildings currently occupied by national government agencies will also come onto the market in the coming years, which could result in a significant increase in supply. The supply of office space in Leidschendam-Voorburg has nearly halved since the 15,000 m² Billiton office building was removed from the market due to rezoning Take-up x1,000 m 2 Take-up H Rental rates by district % 7% 7% Eindhoven Statenkwartier 220 High 165 Average 140 Low 125 Beatrixkwartier High 215 p 42% Average 180 Low 125 A4 12% CS/Voorhout High 225 Average 170 p Low 125 A12 20% Rotterdam 700 A4 Rijswijk High 150 Average 110 Low p q Rental development last 6 months Office Market Report 2014 The Netherlands

6 1350 EINDHOVEN Amsterdam Over 43,000 m² of office space was taken up in the Eindhoven region in This represents an increase of 5% compared to Nearly 60% of the take-up volume could be ascribed to Eindhoven s city centre. Amazon Liquavista was responsible for the region s largest transaction in 2014, when it took up 7,000 m² in the former Philips SFH building. Another large transaction involved Fontys University of Applied Sciences, which took up 5,600 m² of office space in another former Den haag Philips building, De Witte Dame. The sector was responsible for 44% of the uptake in the Eindhoven region in This serves once again as confirmation that Eindhoven is a true technology city, especially when combined with the presence of the city s eponymous university of technology (TU/e) and the High Tech Campus. In addition to the Amazon Liquavista transaction, two other major transactions also took place in 2014: ASML (2, m²) and Belvilla (2,100 m²). Supply in the Eindhoven region rose slightly to 275,000 m² by the end of This increase mainly took place in Eindhoven itself, where a former Philips office building/laboratory (12,000 m²) at the Hurksestraat location became available. Supply in the Eindhoven region rose for the second year in a row; at the end of 2012 supply was approx. 245,000 m². Eindhoven x1,000 m 2 Take-up H Take-up Rental rates by district 13% 7% 3% Rotterdam A North High 135 Average 100 q Low 65 13% 44% West/Airport 500 High 145 Centre High 185 p Average 135 q Average 115 q Low 80 q 480 Low 85 q 19% 460 Veldhoven High 125 Average 100 q Utrecht Low 85 p A A67 p q Rental development last 6 months 6 Office Market Report 2014 The Netherlands

7 650 Den haag 600 ROTTERDAM 300 Take-up Following three years of decline in take-up volume, 2014 finally saw an increase in Rotterdam. A total of approximately 83,000 m² of office space was taken up in the Rotterdam region, which is 12% more than the 74,000 m² of a year earlier. The volume was mainly achieved thanks to a number of large transactions, while the net number of transactions in fact decreased. Just as in 2013, over 55% of the 2014 take-up could be ascribed to Eindhoven Rotterdam s city centre district. The fall in demand in other areas in the region is clearly reflected in the Rotterdam East district and in the satellite town of Capelle aan den IJssel, which recorded hardly any transactions in spite of relatively large markets for office space. The business services sector was the most active in 2014, accounting for 46% of take-up volume. Companies in the manufacturing and construction sectors accounted for approximately 20% of take-up volume. Activities related to the port are a traditional mainstay of the Rotterdam region, and 2014 s largest transaction was by LyondellBasell. The chemical company moved from its accommodations in the Groothandelsgebouw building to 9,000 m² in the Central Post Office building. The supply of office space in the Rotterdam region declined sharply from 869,000 m² in mid-2014 to 833,000 m² at year s end. This is partly because Rotterdam the Blaak 16 property (15,000m²) is being converted by the new owner into a multifunctional and sustainable office building, rendering it temporarily unlettable x1,000 m 2 Take-up H Rental rates by district % 7% 6% 46% Utrecht 440 A Centre High 235 Average 150 p East High 180 q Average 135 q Low 90 q A % 0 Low 90 Capelle aan den IJssel High 160 A4 Average 115 Low 60 q 17% South High 225 Average 140 p Low 90 9 A16 p q Rental development last 6 months 7 Office Market Report 2014 The Netherlands

8 UTRECHT Eindhoven The take-up volume in the Utrecht region has been relatively stable for three years. There was a slight increase from 92,000 m² in 2013 to 94,000 m² in One quarter of the take-up in the Utrecht region took place in the Papendorp district, which was also the location of the region s largest transaction: Bol.com leased 18,000 m² in the WTC Papendorp building. Nearly all transactions in Papendorp took place in the WTC building. RotterdamIn the last two years, nearly 30,000 m² of office space has been leased in the former Capgemini building. Almost 40% of the uptake in the region could be ascribed to the public sector. Large transactions of note included leases by the Police in Nieuwegein, HU University of Applied Sciences Utrecht and the Chamber of Commerce. Business service providers were responsible for relatively few transactions in The supply of office space in the Utrecht region was slightly higher at the end of 2014 compared to mid The increase is mainly due to a growing number of medium-sized office buildings that have been added to the supply, such as the former municipal offices that are now vacant following completion of the new offices at the Central Station location. Supply in the satellite town of Nieuwegein fell slightly due to a number Utrecht of conversions. The relocation of Atos from Papendorp to Amstelveen will add 23,000 m² of office space to the supply in the Utrecht region. Previously, Atos had already reduced its accommodations at its Papendorp location by 12,000 m² x1,000 m 2 Take-up H Take-up Rental rates by district 6% 2X 1% 7% 14% 39% Centre/CS-area High 205 q Average 170 Rijnsweerd/De Uithof High 190 Average 160 Low 125 Low A12 32% Wholesale & retail trade, hotels & catering Papendorp High 180 Average 160 Low 130 Nieuwegein High 140 Average 115 q Low 90 Kanaleneiland High 185 p Average 140 q Low 95 q 7 A12 p q Rental development last 6 months 8 Office Market Report 2014 The Netherlands

9 Acknowledgements This report has been prepared with the utmost care by the researchteam of Colliers International consisting of Kes Brattinga and Thijs Guinee. If you have any questions or remarks please contact us through Regions Supply The regions in this report are composed as follows: Office space >500 m² that is offered in the free market (Realnext). Available space exclusively includes existing and completed properties or properties under construction or renovation which have not already been taken off the market. - The Amsterdam region consists out of the municipalities of Amsterdam, Amstelveen, Diemen and Haarlemmermeer; - The Hague region consists out of the municipalities of The Hague, Rijswijk and Leidschendam - Voorburg; - The Eindhoven region consists out of the municipalities of Eindhoven, Veldhoven, Best and Son en Breugel; - The Rotterdam region consists out of the municipalities of Rotterdam and Capelle aan den Ijssel; - The Utrecht region consists out of the municipalities of Utrecht and Nieuwegein. Take-up Office space >500 m² that is rented or sold in the free market and will be occupied by the user, with the exception of sale and lease back transactions. Rental price The bandwidth of the asking price is based on the prices of the supply of office space. 9 Office Market Report 2014 The Netherlands

10 485 offices in 63 countries on 6 continents United States: 146 Canada: 44 Latin America: 25 Asia Pacific: 185 EMEA: billion in annual revenue million square metres under management 15, professionals and staff About Colliers International Colliers International is a global leader in commercial real estate services, with over 15, professionals operating out of more than 485 offices in 63 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. Primary Authors: Kes Brattinga Head of Research Research +31 (0) kes.brattinga@colliers.com Thijs Guinée Research +31 (0) thijs.guinee@colliers.com Contributors: Sander Halsema Marketing Colliers International Amsterdam Buitenveldertselaan VA Amsterdam Nederland TEL +31 (0) Colliers International Eindhoven Dillenburgstraat AM Eindhoven Nederland TEL +31 (0) Colliers International Rotterdam REMS Bahialaan WC Rotterdam Nederland TEL +31 (0) Colliers International Rotterdam Botersloot Botersloot HE Rotterdam Nederland TEL +31 (0) Colliers International Rotterdam Westersingel LC Rotterdam Nederland TEL +31 (0) colliers.com Copyright 2015 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.