Property Times Belgium secondary markets H So far, so good

Property Times Belgium secondary markets H2 2010 So far, so good 12 July 2011 • The activity recorded at mid-year (90,000 sq m) is in line with the ...
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Property Times Belgium secondary markets H2 2010 So far, so good 12 July 2011



The activity recorded at mid-year (90,000 sq m) is in line with the average and offers a much better performance to the secondary markets as a whole than Brussels.



Most secondary office markets have had a healthy start in terms of take-up but some had difficulties notably Ghent or Liège with results equating to only 15% of 2010.



Unlike 2010, the public sector has been all but present with a mere 10,000 sq m of take-up (11% of the total).



No major deals were recorded over the period, the largest one being the purchase by Acerta of a 10,000 sq m office building in Leuven. All the subsequent deals were below 5,000 sq m. This amplifies the good results observed nonetheless.



Although the peak of office job creation is behind us, economic forecasts predict a sustainable growth over the next couple of years that could result in a net demand of 80,000 sq m annually.



Leuven remains the secondary market with the most expensive office development, the Kantoren Zuid (€155/sq m/year) while Antwerp is catching up with an increase at €145/sq m/year of its prime rent (Figure 1). Namur is the most expensive Walloon market with a prime rent at €149/sq m/year. Generally speaking, average rents in the secondary markets are to be found between €100 and €120/sq m/year.

Contents Executive summary

1

Economic overview

2

Secondary markets

3

Key statistics

12

Definitions

14

Authors Vincent Leroux Head of Belgium Research & Global Geomatics +32 (0)2 629 02 86 [email protected] Shane O’Neill Research Analyst +32 (0)2 629 02 81 [email protected]

Contacts Magali Marton Head of CEMEA Research +33 (0)1 4964 4954 [email protected] Tony McGough Global Head of Forecasting & Strategy Research +44 (0)20 3296 2314 [email protected] Hans Vrensen Global Head of Research +44 (0)20 3296 2159 [email protected]

Figure 1 Secondary markets: Prime rents €/sq m/year 160 150 140 130 120 110 100 2006 Antwerp Liège

2007

2008 Ghent Namur

2009

H1 2010 H2 2010 H1 2011 Mechelen Charleroi

Leuven

Source: DTZ Research

www.dtz.com

1

Economic overview

National accounts data for Q1 show that Belgian GDP rose 1.1% on the quarter, more than double the 0.5% rise in Q4, while annual growth accelerated to 3.0%. The strong start to the year means that Oxford Economics has raised its forecast for GDP growth in 2011 to 2.4% from 2.0% previously. But the strong upturn in activity seen in Q1 is unlikely to be sustained in Q2, when growth is expected to fall back as a number of temporary factors fade. Thereafter, growth should be close to its trend rate, with domestic demand becoming the main driver of the expansion. Overall, GDP is forecast to rise by 2.0% in 2012. Unlike Brussels that will see the peak of office jobs creation in 2011, 2010 was the year that saw the maximum growth. 2011 and 2012 will only see a modest office job growth of 4,000 units (Figure 3). This can be translated into a net need of approximately 80,000 sq m per year. Belgium has now been without an elected government for more than a year. Although the fiscal consolidation process appears to be making good progress, the country will need a full government to decide on the longer-term direction of economic policy. With public debt at 96.8% of GDP last year, the third-highest level in the Eurozone, the economy remains at risk of contagion from renewed financial market turmoil. Indeed, spreads on Belgian sovereign debt rose back above 120bp over German bunds in June as investor sentiment in Eurozone bond markets deteriorated once again (Figure 4). Source: Oxford Economics

Figure 2 Belgium: GDP growth forecast Annual growth 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 2009

2010

2011

2012

2013

2014

2015

Source: Oxford Economics

Figure 3 Secondary markets office jobs growth New jobs* 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2009

2010

2011

2012

2013

2014

2015

* office jobs creation in the urban region of Antwerp, Ghent, Leuven, Mechelen, Liege, Namur and Charleroi

Source: Oxford Economics

Figure 4 Belgium: spread over bunds

1/1/10 1/2/10 1/3/10 1/4/10 1/5/10 1/6/10 1/7/10 1/8/10 1/9/10 1/10/10 1/11/10 1/12/10 1/1/11 1/2/11 1/3/11 1/4/11 1/5/11 1/6/11

Spread (bps) 180 160 140 120 100 80 60 40 20 0

Source: Oxford Economics

www.dtz.com

2

Belgium secondary markets

The secondary markets are faring better than Brussels despite the lack of public sector activity and the “pause” of Ghent. Take-up in Belgium secondary office markets amounted to 90,000 sq m in the first six months of 2011 (Figure 5). This figure is in line with the annual average standing at 190,000 sq m as the second half of the year is traditionally more dynamic. Antwerp is once again the driving force behind the total figure as it can boast over 50% of the activity. Ghent however is trailing behind when compared to its usual level of activity, barely reaching 10,000 sq m.

Figure 5 Secondary markets: Take-up sq m 300,000 250,000 200,000 150,000 100,000 50,000 0

Unlike previous years, the public sector has remained exceptionally quiet during the first semester with only 10,000 sq m of take-up (Figure 6). This trend can also be observed in Brussels where the public sector has been nearly absent up until now. Many lettings have indeed already been realised in the secondary markets by the public sector during previous years in line with a strategy of decentralisation. However, we expect this trend to continue, notably in Wallonia where more activity from the public sector should be visible in the coming months. This expected recovery from the public sector combined with a healthy level of activity from the private sector should allow the secondary markets to record a take-up in line with previous years.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Antwerp Ghent Mechelen Leuven Liège Namur Charleroi Source: DTZ Research

Figure 6 Secondary markets: Public sector take-up sq m 90,000

36% 33%

80,000

34%

70,000 22%

60,000 24% 21%

50,000 40,000 19% 24%

30,000

While the majority of prime rents have remained stable, we can note an increase in Antwerp to €145/sq m/year and a dip in Liège and Charleroi. The most expensive location outside of Brussels remains Leuven with a prime rent of €155/sq m/year in the Kantoren Zuid, followed by Namur at €149/sq m/year in the Namur Office Park. As a comparison, these levels of rents are below the prime rents observed in the Periphery of Brussels (€165/sq m/year).

20,000

12% 8%

11%

10,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Labels refers to the proportion of public sector in the total take-up Source: DTZ Research

Figure 7 Secondary markets: Prime rents €/sq m/year 160 150 140 130 120 110 100 2006 Antwerp Liège

2007

2008 Ghent Namur

2009

H110 Mechelen Charleroi

H210

H111 Leuven

Source: DTZ Research

www.dtz.com

3

Antwerp

Figure 8 Antwerp: Take-up

Antwerp keeps the course. Antwerp seems to be on track for another year of dynamic activity within the occupational market. With nearly 50,000 sq m of take-up already recorded within the first six months of 2011, the activity is within the average (Figure 8). As last year, the Periphery is running behind as it only accounts for 18% of the activity. The Centrum is the most dynamic district as it recorded all the transactions above 2,000 sq m (Map 1).

sq m 160,000 140,000 120,000 100,000 80,000 60,000

The major deals that were recorded include the purchase of the Star Building (4,178 sq m) by the company Fiducial, the letting by two different public services of respectively 3,598 and 3,565 sq m in the Kievietplein or the purchase of the Albion Building (2,750 sq m) by Hans Verstuyft Architecten (Map 2). Antwerp proves once more that it is a fairly local market when it comes to the Centrum office district as nearly all of the significant transactions in the area are by local companies/public services. Another particularity of Antwerp is the strong trend to purchase offices for own occupation as 25% of the recorded take-up is concerned, including five deals above 1,000 sq m. The local character of the market can also be seen in the average deal size clocking at 550 sq m against 900 sq m in Brussels during H1 2011. Unlike last year however, the public sector has remained discrete. Except for the two deals in the Kievitplein, no other activity was recorded. Map 1 Antwerp: Take-up (H1 2011)

40,000 20,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Centre Singel Periphery Source: DTZ Research

Map 2 Antwerp centre: Take-up map (H1 2011) Take-up (sq m)

Wuustwezel

Kalmthout

Take-up (sq m) 9,000

9,000 2,800 700

Brecht

2,800 700

Stabroek

Periferie Noord Antwerpen

Haven

Brasschaat

Antwerpse Verkeerspolitie

Centrum

Periferie Oost Schoten Wijnegem

Linkeroever

Sint-Gillis-Waas

Beveren

ZwijndrechtAntwerpen

Vlaams Verkeers- & Tunnelcentrum

Schilde Zandhoven

Centrum Wommelgem Borsbeek

Ranst

Singel Kruibeke

Fiducial

Mortsel

Sint-Niklaas

Boechout Edegem Hove

Singel

Hemiksem Schelle

Temse

Aartselaar Kontich Lint

Lier

Main waterways Berlaar

Niel Hamme

Main waterways

Periferie Zuid

Bornem

Boom Puurs

Source: DTZ, Téléatlas

www.dtz.com

Rumst

Duffel

Forests Industrial terrains 0Sint-Katelijne-Waver 5 10 km

Forests Industrial terrains Source : DTZ, Téléatlas

0

1

2 km

4

Antwerp

Although no new developments have been delivered on the market, the availability ratio has bounced back higher to 11.54%. The total availability is indeed standing at an historic high of 240,000 sq m and the effect on the ratio is worsened by the diminution of the office stock due to some reconversion (notably to schools). The increase in total availability can be explained by the compression of space by companies at their break, be it because they need less on the back of staff decrease or because they are trying to rationalise their sq m/desk ratio. Only one speculative development (Helsmoortel III 5,900 sq m) is expected for delivery this year and none in 2012. We can therefore expect the availability to remain under control given the good level of demand. Antwerp however needs new entrants on the market to boost furthermore the occupancy as it works very much in a “closed system”. The Haven is probably the best bet to promote Antwerp as a possible choice for companies to settle their HQ. While some surfaces of less than 150 sq m have been let at a higher rent, the prime rent in Antwerp has increased by only 4% and now stands at €145/sq m/year. The prime deals have all been observed in the Centrum district. We forecast the prime rent to remain stable until 2013. The average observed rent stands at €108/sq m/year since January.

Figure 9 Antwerp: Availability ratio 14% 12% 10% 8% 6% 4% 2% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: DTZ Research

Figure 10 Antwerp: Rents €/sq m/year 160 140 120 100 80 60 40 20 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Average weighted rent

Prime rent

Source: DTZ Research

www.dtz.com

5

Ghent

Ghent is facing a potential oversupply in the near-term if the activity is not picking up.

Figure 11 Ghent: Take-up sq m

The Ghent office market is performing at an underwhelming rate thus far in 2011 with barely 9,500 sq m of newly occupied office spaces recorded. Over the last decade, Ghent’s average take-up at this stage of the year had been closer to 13,000 sq m, and even higher in the last five years, when it has been over 20,000 sq m. The largest transaction so far this year involved the WitGele Kruis setting up their East Flanders 4,200 sq m head office in Het Pakhuis (Oost district) having purchased it for own occupation from Group Blijweert for €11million. There is to be a significant amount (around 100,000 sq m or a 13% office stock increase) of speculative additions to Ghent’s current office stock to be delivered within the next two years. These include the 33,000 sq m Take Off Office Park in the Loop which is subject to a planning permit but has already begun its search for occupiers, as well as the Artevelde stadium project which has been given the go-ahead. The mixed use project will include a total of 42,000 sq m of office spaces and be delivered by the summer of 2012. The Ghent market’s current state of affairs is not encouraging in terms of finding occupiers for these developments. A cautious approach towards potential oversupply in Ghent in the near future had indeed already been signalled in DTZ’s in-house view of Belgium, published last December. Currently, public sector lettings are drying up; these had been an important source of new occupancy since 2007 especially and the boost they had given the real estate market may have made some developers’ heads spin, hence the amount of speculative developments now taking place. One can only hope that demand will follow the offer.

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Centre Periphery Source: DTZ Research

Map 3 Ghent: Take-up (H1 2011) Zelzate

Take-up (sq m) 9,000

Eeklo

Wachtebeke

2,800 700

Waarschoot

Zomergem Evergem

The Zuid district proved the most popular so far this year with nine transactions totalling 3,700 sq m in take-up, while the Oost district attracted two modest sized transactions adding up to little over 500 sq m, in addition to the Wit-Gele Kruis purchase mentioned above. The Centrum district counts eight transactions adding up to 1,100 sq m. There were no recorded transactions in the Noord district (Map 3).

Lochristi

Lovendegem

Noord

Centrum

Het Wit-Gele Kruis

Nevele

Wetteren

Melle

Zuid Merelbeke

Deinze

Nazareth

Main waterways Oosterzele Forests

Industrial terrains Gavere

Source : DTZ, Téléatlas

www.dtz.com

Laarne

Oost Sint-Martens-Latem

De Pinte

The prime rent in Ghent remains the same as the second half of 2010 at €140/sq m/year. This is not expected to rise given the amount of availability which will hit the market.

Destelbergen

Gent

0

5

10 km

Sint-Lievens-Houtem

6

Mechelen

Mechelen is above average thanks to its northern activity park and the Zuidpoort. The first half of 2011 shows noteworthy signs of the Mechelen market picking up after a decrease in activity three years running. Indeed take-up is at a level of 9,000 sq m, i.e. less than 2,000 under the level reached at the end of 2010, and already 20% above the level reached this time last year (Figure 12). Regarding projects in the area, the Zuidpoort development has opened two of its phases totalling 4,800 sq m, across the way from the Mechelen train station. Grontmij is letting the 4,000 sq m B building and SD Worx as well as Onafhankelijk Ziekenfonds are occupying the 800 sq m H building. Works on the other phases of the Zuidpoort project which includes residential spaces are ongoing, and should be delivered from 2012. Meanwhile, Cummins’ European headquarters will not be delivered before 2012.

Figure 12 Mechelen: Take-up sq m 30,000 25,000 20,000 15,000 10,000 5,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Source: DTZ Research

As far as take-up was concerned, the 4,000 sq m Grontmij letting was also the biggest in Mechelen during the first half of 2011. The only other deal above 1,000 sq m is a 2,145 sq m office and R&D facilities letting by Biocartis in Intercity Business Park. Also in Intercity Business Park, SGS Belgium extended their offices by 800 sq m. In the same area, popular poles Mechelen Campus and Stephenson Plaza welcomed new tenants occupying 900 sq m, and 700 sq m respectively. Prime rents in Mechelen have not changed from the €125/sq m/year reported previously; this is the level of rent recorded in the Mechelen Campus Business Park. Average rents are to be found between €80 and €120/sq m/year.

Map 4 Mechelen: Take-up (H1 2011) Take-up (sq m) 9,000

Rumst

Sint-Katelijne-Waver 2,800

700 Biocartis

Mechelen Bonheiden

Grontmij Vlaanderen

Main waterways Forests Industrial terrains Source : DTZ, Téléatlas

www.dtz.com

Zemst

0

2

4 km

7

Leuven

Leuven is showing a strong result but supported by one main deal. Activity in Leuven seems to be following a similar pattern to that in Mechelen. Indeed, after a three-year decrease, there looks to be more interest in the area, seeing as take-up during the first half of 2011 has practically accomplished the same levels as those reached at the end of 2010. A look at take-up halfway through 2010 compared to now is even more positive since there has been a 250% increase. Such high level of activities owes a lot to an exceptionally large purchase of 10,000 sq m of office space by Acerta for own occupation on the Dieststevest, near Leuven train station. From the seven other recorded transactions, only a 950 sq m letting by the Rode Kruis in Hervelee approached the 1,000 sq m bar. In the Campus Remy, Sterigenics is letting 850 sq m office space (Map 5). There are close to a further 40,000 sq m to be delivered in Leuven this year, among which, close to 7,000 are prelet, all of which at the Kop van Kesse-lo. Three prelettings totalling 5,000 sq m had been recorded in the Kantoren Noord end of Kop van Kesse-lo, which has just recently been delivered. Also recently delivered, the Kantoren Zuid-Exos had two pre-lettings which accommodated for the other 2,000 sq m. The other developments expected for the end of 2011 are the Kantoren Zuid-Mesos and Stratos (over 12,500 in total), and the Bio-Incubator II building in the Wetenschapspark Arenberg along the Koning Boudewijnlaan in Herverlee.

Figure 13 Leuven: Take-up sq m 30,000 25,000 20,000 15,000 10,000 5,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Source: DTZ Research

Map 5 Leuven: Take-up (H1 2011) Take-up (sq m) 9,000

The prime rent in Leuven has remained at €155/sq m/year ; this corresponds to the lettings of Riziv and Deloitte in the Kantoren Zuid. The average rent during the first half of 2011 ranged between €112 and €115/sq m/year.

Holsbeek

2,800 700

Herent

Acerta

Leuven

Main waterways Forests Industrial terrains Oud-Heverlee

Source : DTZ, Téléatlas

www.dtz.com

0

2

4 km

8

Liège

Liège is still characterized by a strong level of demand that cannot be met by the lack of supply. Despite the existing demand we can record on the field, there has been very little activity in Liège with barely 2,000 sq m recorded since January (Figure 14). This is well below the average as we usually see about 13,000 sq m of take-up in Liège on a yearly basis.

Figure 14 Liège: Take-up sq m 70,000 60,000 50,000 40,000 30,000

One deal accounts for half of the activity, the letting of 1,100 sq m by Degremont of the Groupe Suez in Herstal (Map 6). The four other recorded deals are all below 300 sq m.

20,000 10,000 0

The current lack of offer has been acknowledged by developers and a handful of developments are scheduled in the coming two to three years. Aside from the massive developments near the station by Befimmo and Eurogare that will take longer to be ready we can mention the refurbishement and extension of the Archipel Business Centre (8,000 sq m) and a large office development of 20,000 sq m by the Horizon Groupe on the rue du Fourneau. Another development has already received its building permit, the Office House in Rocourt which will develop 3,600 sq m of quality office space. Given the lack of transactions, the prime rent has come down to €130/sq m/year and may very well decrease further before new prime assets are delivered on the market and increase the level of the offer once again. The average level of rents however is slowly increasing alongside the interest of tenants and is now to be found between €90 and €120/sq m/year.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Source: DTZ Research

Map 6 Liège: Take-up (H1 2011) Take-up (sq m) 9,000 2,800 700

Herstal Ans

Liège

Saint-Nicolas

Main waterways

Beyne-Heusay

Forests Industrial terrains

Source : DTZ, Téléatlas

www.dtz.com

0

2

4 km

9

Namur

Namur confirms its position as the most expensive and sought after Walloon market. Namur is the most dynamic Walloon market with a recorded take-up of 7,300 sq m (Figure 15). This is above the average and reflects the healthy demand in the administrative capital of the Walloon region. As usual the public sector boasts the strongest demand with nearly half of the total activity as well as the major deal, namely the letting of 2,202 sq m by the CWAPE in the Belgrade Business Centre at a rent of €104/sq m/year (Map 7). Three other deals are above the 1,000 sq m threshold. The energy efficient Synergie et Croissance building is now full with the letting of 1,172 sq m at €160/sq m/year (including part of the service charges) to WIN; the Namur Office Park continues to prove its quality with the letting of 1,100 sq m to ING and 425 sq m to CSD Ingénieurs and the Belgrade Business Centre is also filling up nicely by welcoming Euphony (1,045 sq m) and the Régie des Bâtiments (900 sq m). These deals occurring in fairly recent developments illustrate the ongoing demand in this market where developers are now also being active. However, no speculative developments are being scheduled for delivery in the coming two years despite the existing demand in the city centre. This may very lead to a shortage of space and an increase in rent. The only project that has recently obtained a permit is the Green Park on the Chaussée de Liège will only start its development once tenants have been found.

Figure 15 Namur: Take-up sq m 25,000 20,000 15,000 10,000 5,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Source: DTZ Research

Map 7 Namur: Take-up (H1 2011) Take-up (sq m) 9,000

The prime rent is still to be found in the Namur Office Park at €149/sq m/year as no other prime office development has been delivered on the market for quite some time, with the notable exception of the Synergie and Croissance. This building is one of the most “Green” office building in the market with a rent of €160/sq m/year but it includes parts of the services charges and is therefore difficult to consider as a prime rent.

Emines

2,800 700

Average rents in Namur are to be found between €100 and €130/sq m/year.

CWAPE

Namur

Main waterways Forests Industrial terrains Source : DTZ, Téléatlas

www.dtz.com

0

2

4 km

10

Charleroi

Charleroi remains an opaque market with very little activity outside of the Aéropole.

Figure 16 Charleroi: Take-up Sq m

Despite the fact that Charleroi often appears in the press when it comes to retail properties with the redevelopment of part of the city centre, there is very little to be said on offices for the first city of Wallonia in population terms (202.000 inhabitants).

7,000 6,000 5,000 4,000

Not only is there usually a weak level of activity and a great deal of vacancy but a fair part of the deals take place between parties and without external communication. We have been able to record only one deal in the centre of Charleroi (the letting of 395 sq m to the Forem) and Igretec has welcomed two new tenants in the Aéropole in the Periphery (Map 8). This brings the know level of take-up for the market to a low 1,436 sq m (Figure 16).

3,000 2,000 1,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 H1 2011 Source: DTZ Research

A couple of turn-key developments are expected for delivery in the coming twelve months in the Aéropole: The Campus Technologique (21,000 sq m) and the new building of Delphi Genetics (1,500sq m). The city centre will have to wait for the Rive Gauche project to start to see some new office spaces as the only other scheduled development is a turn-key for Igretec and Ethias (11,500 sq m). Despite a prime rent that has increased to €130/sq m/year last year, most of the deals in the Aéropole are to be found between €100 and €120/sq m/year. The city centre can only achieve rents between €50 and €70/sq m/year as the vast majority of the office stock is outdated.

Map 8 Charleroi: Take-up (H2 2010) Take-up (sq m) 9,000 2,800 700

Courcelles

Charleroi Châtelet

Main waterways

Montigny-le-Tilleul

Forests Industrial terrains Source : DTZ, Téléatlas

www.dtz.com

0

2

4 km

11

Key statistics – occupier market

Table 1 Occupier market - Flanders 2008

2009

2010

H1 2011

Stock (m sq m)

1.94

2.03

2.11

2.11

Take-up (sq m)

140,685

77,896

118,869

47,778

Prime rents (€/sq m/year) Ghent

140

135

140

145

Stock (m sq m)

0.75

0.75

0.77

0.77

Take-up (sq m)

32,316

29,536

58,462

12,91

Prime rents (€/sq m/year) Mechelen

135

135

135

3.70

Stock (m sq m)

0.25

0.26

0.26

0.27

Take-up (sq m)

20,447

12,260

10,976

9,257

Prime rents (€/sq m/year) Leuven

135

125

125

125

Stock (m sq m)

0.47

0.49

0.49

0.49

Take-up (sq m)

27,851

21,831

14,129

12,728

135

135

155

155

Antwerp

Prime rents (€/sq m/year) Source: DTZ Research

Table 2 Major occupiers transactions in H1 2011 - Flanders Q

Market

Building

1

Leuven

Diestsevest 1

2

Ghent

Het Pakhuis

2

Antwerp

1 1

Offices (sq m)

Tenant - occupier

Transaction

Acerta

Purchase

4,200

Het Wit-Gele Kruis

Purchase

Star Building

4,178

Fiducial

Purchase

Mechelen

Zuidpoort B

4000

Grontmij Vlaanderen

Letting

Antwerp

Kievietplein

3598

Antwerpse Verkeerspolitie

Letting

10,000

Source : DTZ Reseach

www.dtz.com

12

Key statistics – occupier market

Table 3 Occupier market - Wallonia 2008

2009

2010

H1 2011

Stock (m sq m)

0.46

0.47

0.47

0.47

Take-up (sq m)

Liège 12,110

66,758

14,460

2,028

Prime rents (€/sq m/year) Namur

120

135

135

130

Stock (m sq m)

0.36

0.37

0.40

0,40

Take-up (sq m)

22,844

11,771

14,661

7,304

Prime rents (€/sq m/year) Charleroi

150

150

149

139

Stock (m sq m)

0.38

0.38

0.38

0.38

Take-up (sq m)

5,164

4,559

4,835

1,436

110

110

130

125

Prime rents (€/sq m/year) Source: DTZ Research

Table 4 Major occupiers transactions in H1 2011 – Wallonia Q

Market

Building

1

Namur

Belgrade BC

1

Namur

2

Offices (sq m)

Tenant - occupier

Transaction

2,202

CWAPE

Letting

Synergie et Croissance

1,172

We Innovate Now

Letting

Liège

Rue de Hermée 225

1,100

Degremont

Letting

1

Namur

Namur Office Park

1,100

ING

Letting

1

Namur

Actibel BC

1,045

Euphony

Letting

Source : DTZ Reseach

www.dtz.com

13

Definitions

Take-up

Prime rent

Represents the total floor space known to have been let or pre-let to tenants or sold or pre-sold to owneroccupiers as known on the last day of the quarter. Pure contract renewals, sales and leasebacks and sublettings are not included.

Represents the attainable average prime rent that could be expected for an office unit (minimum 500 sq m) commensurate with demand in each location, highest quality and specification in the best location in a market at the survey date. The rent is given as a base rent, that is, no service charge or tax is included.

New supply Represents the total amount of floor space that has reached practical completion as known on the last day of the quarter (including major refurbishments) regardless of whether the space is occupied or still available on the market.

Square metres Unless stated otherwise, the square metres used in this publication refer to the Gross Leasable Area definition for Brussels. For more information, see our DTZ Insight: Office Lease Area Comparison.

Prime yields

Availability

Represents the initial yield estimated to be achievable for a notional office property of highest quality and specification in the best location fully let and immediately income-producing in a market at the survey date.

Represents the total floor space in existing properties which are physically vacant, ready for occupation and being actively marketed as known on the last day of the quarter (with a margin of error of 5%). The vacancy rate represents the total vacant floor space divided by the total stock at the survey date.

Stock The office property stock is the sum of office properties which are in use and office properties standing vacant at the time of analysis. The office property stock is not a static amount. It increases owing to new-build or totally refurbished operations (new supply) and decreases owing to demolition, change of use or even larger refurbishments that make the space not usable for a significant amount of time.

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Contacts

Occupational & Development Markets Jérôme Coppée

+32 (0)2 629 02 57

[email protected]

Pierre Badot

+32 (0)2 629 02 05

[email protected]

Stéphane Moermans

+32 (0)4 222 02 20

[email protected]

Ulrik Mertens

+32 (0)2 629 02 01

[email protected]

Kristof van Renterghem

+32 (0)2 629 02 75

[email protected]

Dirk Van Bulck

+32 (0)3 303 10 20

[email protected]

Stijn Van achter

+32 (0)3 303 10 22

[email protected]

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Disclaimer This report should not be relied upon as a basis for entering into transactions without seeking specific, qualified, professional advice. Whilst facts have been rigorously checked, DTZ can take no responsibility for any damage or loss suffered as a result of any inadvertent inaccuracy within this report. Information contained herein should not, in whole or part, be published, reproduced or referred to without prior approval. Any such reproduction should be credited to DTZ. © DTZ July 2011

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