office market regions 2012 A report by nvm business Last year the Netherlands’ different regions saw clearly opposing tendencies. While demand for office space in West North, East and North East reasonably picked up, West South, Central Netherlands and South had to face a diminishing take-up level.
1. West North Region The West North region may look back on a positive year as far as demand for office space is concerned. On the open market (excluding the construction of speculative offices) almost just as much office space had been taken up compared to 2011. In total, approximately 300.000 m² of office space exchanged users. A significant role was reserved for the city of Amsterdam, which took up much of the available office space in the region. Amsterdam’s office market was mainly inspired by the state of affairs in Amsterdam South East, which again was extremely popular among office users. For instance, Nuon and DAS Rechtsbijstand decided to rent office space in this part of the city. Because almost one-third of the total demand involved South East, last year this area became the city’s hotspot. Except for South East, much office space was also required downtown. Demand for offices in Sloterdijk-Teleport, on the other hand, was simply a serious letdown as hardly any lease transactions had taken place. Elsewhere in this region, the cities of Hilversum and Amstelveen in particular were doing well. Schiphol too managed to benefit from the positive mood while the rest of the West North region had to see demand for office space drop. Haarlem and Zaandam suffered the most. Last year the West North region was disappointed about the rising supply of office space available for immediate occupation, which mainly followed from the increased availability of square metres in Amstelveen, Haarlem and Haarlemmermeer. Increased availability in Haarlemmermeer mainly had an adverse effect on Hoofddorp. Nevertheless, Amsterdam’s office market was capable of resisting the rising availability as the amount of space on offer remained almost the same. Diemen was yet another positive exception. Because a number of large office buildings had been withdrawn from stock, the vacancy level declined by 40%.
Supply versus take-up in the West North region
x 1000 m2
2,100 1,800 1,500 1,200 900 600 300 0
2003
2004
2005
2006
2007 take-up
2008
2009
2010
2011
2012
supply
source: NVM
Take-up of office space by size category 2012
7% 200 – 499 m2
10,000 m2 and more 14%
17% 500 – 999 m2 5,000 – 9,999 m2 13%
2,500 – 4,999 m2 18%
31% 1,000 – 2,499 m2
source: NVM
City Alkmaar
Supply 2011
Supply 2012
Take-up 2011
Take-up 2012
Rents
49,500
52,500
2,500
6,000
90 - 135
Amstelveen
159,500
171,000
6,500
12,500
85 - 180
Amsterdam
1,039,000
1,039,000
203,000
203,000
100 - 330
Diemen
65,000
38,500
5,000
500
85 - 135
Haarlem
59,500
67,500
5,500
1,500
125 - 160
Haarlemmermeer
279,500
315,500
51,000
41,500
100 - 350
Hilversum
112,000
110,000
12,000
13,500
125 - 170
Zaanstad
28,000
38,500
5,500
1,500
80 - 125
NVM Business office market regions
2. West South Region Last year the office market in the West South region clearly sailed against the wind. On the open market significantly fewer square metres were let compared to 2011. The city of Rotterdam in particular faced disappointing demand and as a result, the take-up level seriously went down. Indeed many small transactions had taken place in the port city, but it was not enough to sufficiently make up for the lack of large-scale transactions. The city centre suffered the most. Rotterdam was not the only city in this region to see take-up drop. Last year, potential office space lessees in the cities of Dordrecht and Leiden were also reluctant. The market situation was entirely different in The Hague, where the take-up level rose significantly following a number of lease transactions with inter alia Spaces, HTM and Mn Services. An interesting role was reserved for the city centre, which took responsibility for almost 40% of the total demand. The Bezuidenhout district also gained popularity, even though less office space was taken up in this area compared to previous years. In Zoetermeer, which is only 13 kilometres away from The Hague, the transaction volume also went up. On Zoetermeer’s office market the tone was set by Ortec in the first place, which took up a sizeable amount of space in the Rokkeveen area. Also, transactions with Ipse de Bruggen and Klant Contact Services allowed demand to pick up strongly. Last year the amount of office space available in the West South region climbed alarmingly. Even though most places suffered from this rise, the cities of Rotterdam and The Hague in particular had to witness a further rise in availability. In Rotterdam the vacancy level stood at 18%, while The Hague reported a comfortable 12% by year-end 2012.
Supply versus take-up in the West South region
x 1000 m2
2,400 2,000 1,600 1,200 800 400 0
2003
2004
2005
2006
2007 take-up
2008
2009
2010
2011
2012
supply
source: NVM
Take-up of office space by size category 2012
5,000 – 9,999 m2 9%
8% 200 – 499 m2
2,500 – 4,999 m2 24%
25% 500 – 999 m2
34% 1,000 – 2,499 m2 source: NVM
Supply 2011
Supply 2012
Take-up 2011
Take-up 2012
Rents
Capelle a/d IJssel
City
131,500
135,000
11,000
10,000
90 - 145
The Hague
463,000
514,000
45,000
69,500
100 - 215
Dordrecht
45,000
53,500
16,000
5,500
100 - 140
Gouda
72,000
96,000
5,000
5,000
90 - 135
Leiden
51,500
69,000
28,000
7,500
80 - 150
LeidschendamVoorburg
73,000
77,000
6,500
5,000
95 - 145
Rijswijk
221,500
244,500
5,500
10,000
85 - 145
Rotterdam
574,000
639,000
117,000
65,500
100 - 200
24,500
23,500
18,500
2,000
100 - 125
130,000
135,500
8,500
23,000
85 - 145
Schiedam Zoetermeer
NVM Business office market regions
3. Central Region In 2012 the Central Netherlands region faced a declining take-up of office space. Indeed, poorer demand presented itself in several areas, although it was most significant in the cities of Almere, Amersfoort, Maarssen and Zeist. Almere in particular witnessed disappointing demand. The amount of transactions in this city was anything but exciting but also, the lack of major lessees pushed the take-up volume significantly down. Amersfoort too saw transaction volume drop, although decline was less alarming compared to Almere. Utrecht and Veenendaal are the only cities in the Central Netherlands region that managed to escape disappointing trends in demand. In fact, both cities saw take-up rise. In Utrecht it was Capgemini that allowed demand for offices to climb as it decided to lease a considerable amount of space in an office to be built in Leidsche Rijn. In addition, transactions with DAS Rechtsbijstand, Veiligheidsregio Utrecht and RAM Mobile Data contributed to healthy lease figures. Although Utrecht’s city centre and the Rijnsweerd office park showed favourable trends in demand, the Kanaleneiland district and the Papendorp business park were clearly sailing against the wind. In Papendorp (the city’s third location size-wise), demand for office space was very low. As a result, no more than 8,000 m² were taken up. In addition to poorer demand, the Central Netherlands region also suffered from a rapidly riding number of offices available for rent. Although this problem presented itself in different places, availability was highest in Almere, Amersfoort and Utrecht. In Utrecht, supply increased mainly in Papendorp, partly due to Capgemini’ intended departure. Last year, more office space was also available in the city centre while Nieuwegein managed to keep supply steady compared to year-end 2011.
Supply versus take-up in the Central Netherlands region x 1000 m2
1,500 1,200 900 600 300 0
2003
2004
2005
2006
2007 take-up
2008
2009
2010
2011
2012
supply
source: NVM
Take-up of office space by size category 2012
12% 200 – 499 m2
10,000 m2 and more 16%
2,500 – 4,999 m2 12%
28% 500 – 999 m2
1,000 – 2,499 m2 32% source: NVM
Supply 2011
Supply 2012
Take-up 2011
Take-up 2012
Rents
Almere
City
170,000
181,500
9,500
2,500
90 - 140
Amersfoort
148,000
167,500
25,500
18,000
95 - 150
40,500
45,500
5,000
500
95 - 135
Houten Lelystad Nieuwegein Stichtse Vecht Utrecht
33,500
32,500
500
500
90 - 140
176,500
174,500
12,000
8,500
75 - 140
50,000
50,000
7,000
1,000
65 - 125
326,000
402,000
64,500
72,500
100 - 185
Veenendaal
44,000
42,500
3,000
7,500
90 - 135
Zeist
34,500
36,000
7,500
1,000
95 - 150
NVM Business office market regions
4. North East Region Demand for office space in the North East region remained steady in 2012. On the open market almost just as much office space had been taken up as in the previous year. Demand managed to stabilise mainly due to positive developments in the cities of Enschede, Groningen and Zwolle, with Enschede taking up a major role. Following several large lease transactions with companies such as DEMCON, Apollo Tyres and Eshuis Accountants, demand seriously went up in this part of the Netherlands. It was mainly the Business & Science Park that took advantage from this state of affairs. While most take-up in Enschede was determined by major office users, in Groningen the focus was rather on smaller spaces. The only decent transaction on the open market was the lease transaction with Grontmij, involving a 6,000 m² building. Nevertheless, positive trends in demand did not occur across the region. For example, in Leeuwarden office lease transactions were hardly exciting and last year’s take-up level was almost the same as in 2011. In Emmen and Hoogeveen lessees were once again not very interested and in Assen too demand was rather poor. As a result, the take-up level was much below average. While demand for office space was relatively positive last year, the supply level on the other hand developed less conveniently: more offices became vacant. One interesting fact is that the cities of Zwolle and Leeuwarden in particular witnessed rising availability. Due to a higher supply level in Zwolle, 17% of the total office stock was offered for rent or sale at the end of the year. Nevertheless, some cities managed to distance themselves from the negative sentiment. For example, Groningen and Enschede saw availability drop and in Almelo and Heerenveen office supply was almost the same.
Supply versus take-up in the North East region
x 1000 m2
600 500 400 300 200 100 0
2003
2004
2005
2006
2007 take-up
2008
2009
2010
2011
2012
supply
source: NVM
Take-up of office space by size category 2012
7% 200 – 499 m2 5,000 – 9,999 m2 23% 26% 500 – 999 m2 2,500 – 4,999 m 4% 2
1,000 – 2,499 m2 40% source: NVM
City Almelo
Supply 2011
Supply 2012
Take-up 2011
Take-up 2012
Rents
21,000
20,500
2,000
3,000
90 - 140
Assen
30,000
32,500
3,000
500
80 - 125
Emmen
22,500
32,000
500
500
80 - 125
Enschede
80,500
65,500
9,500
17,500
80 - 140
Groningen
111,000
105,000
18,000
15,500
105 - 155
Heerenveen
22,000
21,500
500
1,500
85 - 120
Hengelo
32,000
29,000
500
3,000
85 - 130 100 - 120
Hoogeveen
12,500
7,500
500
500
Leeuwarden
61,500
75,500
1,000
1,500
90 - 135
115,000
134,000
11,500
10,000
90 - 140
Zwolle
NVM Business office market regions
5. eaST Region As far as the office market in the East region is concerned, 2012 was not an unsatisfactory year. Even though market conditions were not great yet, lease transactions did remain at the 2011 level. This positive sentiment followed from trends in demand in the cities of Arnhem and Nijmegen, where much more office space was let and sold. In addition to many small-scale lease transactions, the take-up level in both cities was also influenced by a number of large transactions. For example, in Arnhem‘s IJsseloord area, DEKRA bought an office building covering almost 9,000 m². Besides, transactions with Liander and Raad voor de Kinderbescherming allowed office demand to pick up strongly. In Nijmegen the sales volume increased mainly due to lease transactions with Pluryn and Scholten Awater. While the lease markets in Arnhem and Nijmegen made a lively impression, last year the office markets in Apeldoorn and Deventer (suffering the most) had to settle for a drop. The serious decline in take-up in the city of Apeldoorn was mainly the result of the almost non-existence of major lessees and not so much due to the number of transactions effected. Appreciable rises or declines did not occur in the rest of the region. Also characteristic of the state of affairs on the office market was the fact that the total supply in the East region increased last year. Availability rose almost in the entire region, being most visible in the cities of Apeldoorn, Deventer and Nijmegen. In Nijmegen the supply level increased strongly as much space had become vacant in the FiftyTwoDegrees building. In Apeldoorn it was the Rabobank’s relocation that made availability rise, as a result of which the city centre in particular faced an increase. With regard to the situation elsewhere in this region, it is interesting to note that Arnhem and Doetinchem managed to reasonably resist increased availability; the amount of space available remained almost the same in both cities.
Supply versus take-up in the East region
x 1000 m2
600 500 400 300 200 100 0
2003
2004
2005
2006
2007 take-up
2008
2009
2010
2011
2012
supply
source: NVM
Take-up of office space by size category 2012
8% 200 – 499 m2 15% 500 – 999 m2 5,000 – 9,999 m2 49% 17% 1,000 – 2,499 m2
11% 2,500 – 4,999 m2 source: NVM
Supply 2011
Supply 2012
Take-up 2011
Take-up 2012
Rents
Apeldoorn
City
105,000
113,000
19,000
11,500
80 - 135
Arnhem
187,500
190,500
15,500
25,000
95 - 165
Deventer
62,000
71,000
12,500
2,500
90 - 135
Doetinchem
13,000
13,500
2,000
1,500
95 - 135
Nijmegen
45,500
54,000
4,500
9,500
100 - 140
Winterswijk
100 - 115
10,500
12,000
500
500
Zevenaar
5,000
4,000
5,500
1,000
80 - 120
Zutphen
9,000
13,500
1,000
500
85 - 135
NVM Business office market regions
6. South Region In the South region, last year the office market had to settle for a strong decline in office demand: almost 40% down compared to 2011. This to some extent followed from poor demand for larger offices in Eindhoven and Breda. As a result, both cities had to accept a serious decline. In Eindhoven, the transaction volume was even much below the city’s annual average. Maastricht too saw demand for office space diminish. In fact, the only cities in the South region that managed to escape last year’s disappointing trends in demand, were the cities of Den Bosch, Tilburg and Heerlen. In Den Bosch almost just as much office space was taken up compared to the previous year. This was particularly good for the Paleiskwartier district, where Arcadis and the power company Enexis ensured serious take-up of office space. In Tilburg too, the take-up level was equivalent to that in 2011. The occupational market managed to stand firm, also due to major lessees such as the Verenigde Bierens Bedrijven and Omgevingsdienst Midden- en WestBrabant (OMWB). The city of Heerlen owes the positive trends in demand mainly to the municipality that has reached an agreement on an office complex to be built in the city centre. Although most take-up realised last year involved existing office buildings, it was not enough to push down the number of available offices in the region. In only one year supply increased by 13%, continuing the line that started in previous years. This major increase in availability also followed from the rising vacancy rates in the cities of Breda, Den Bosch, Eindhoven and Helmond. Rise in Eindhoven meant that by the end of the year, some 15% of this city’s stock was vacant. In Limburg it was mainly Heerlen and Roermond that witnessed increased availability. The city of Maastricht, where the supply level hardly changed, was the only exception.
Supply versus take-up in the South region
x 1000 m2
1,000 800 600 400 200 0
2003
2004
2005
2006
2007 take-up
2008
2009
2010
2011
2012
supply
source: NVM
Take-up of office space by size category 2012
13% 200 – 499 m2 5,000 – 9,999 m2 19%
18% 500 – 999 m2
2,500 – 4,999 m2 8%
42% 1,000 – 2,499 m2 source: NVM
City
Supply 2011
Supply 2012
Take-up 2011
Take-up 2012
Rents
Breda
100,000
115,500
25,000
8,000
85 - 150 100 - 160
Den Bosch
98,000
115,000
23,000
24,500
Eindhoven
214,500
224,000
51,500
25,500
85 - 155
25,500
36,000
7,000
13,500
70 - 130
Heerlen Helmond
25,000
41,000
4,000
1,000
90 - 130
Maastricht
79,000
78,000
25,500
7,000
100 - 140
Roermond
21,000
30,000
7,000
500
90 - 140
Sittard-Geleen
21,000
20,000
1,000
500
90 - 130
Tilburg
52,000
55,000
14,000
13,500
100 - 145
Venlo
24,500
27,000
3,500
6,000
70 - 135
NVM Business office market regions
Definitions Office
A spatial and independent unit used for office activities or supporting activities in the first place. ‘Office’ does not refer to office space that is part of an industrial buildings, university or hospital.
Take-up
Lease and sales transactions taking place on the open market. Users who provide for their own accommodation requirements (the ‘owner-occupier development’) are not included in the take-up volume. The same applies to sale-and-leaseback agreements as well as contract extensions. NVM registers transactions starting at 200 m².
Supply
Office space immediately available for rent or sale. Supply does not include offices under construction and which are yet to be built. Supply includes vacant and developing offices as well as spaces that are still being used but which are soon to be released. Supply is measured in buildings providing at least 500 m².
Rent
The basic rent paid per square metre of lettable floor area, exclusive of VAT, service charges and lessees’ specific fitting-out costs.
Colophon Composition Drs. R. L. Bak. Data source NVM Data & Research, Nieuwegein. Design Proof Studio, Amsterdam.
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March 2013
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