Overview. Netherlands Officemarket Supply Take-up Amsterdam The Hague Eindhoven Rotterdam Utrecht

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1 Amsterdam The Hague Eindhoven Rotterdam Utrecht Netherlands Officemarket 213 Overview Supply 213 In 213, the take-up of office space decreased once again in the Netherlands. This decline has now lasted for six years. Nevertheless, the supply seems to be stabilizing around the 7.2 million m² mark. The take-up of office space in Amsterdam fell disappointingly in 213, reaching its lowest level since 29. Despite limited new constructions and conversion projects, the supply in the region rose slightly. Utrecht Rotterdam Eindhoven The Hague Amsterdam In 213, The Hague and the surrounding region saw the highest take-up rates since 27. The largest transaction in the Netherlands also took place partly here. Because of the high take-up volume, there was also a slight decrease in supply. The take-up rate for office space in Eindhoven fell for the second year in a row in 213. ASML alone was responsible for a quarter of the take-up. Supply remained relatively stable in saw the lowest take-up rate for office space for the last six years in Rotterdam; supply also rose steadily. This was caused by downsizing at Nationale Nederlanden in 213. In Utrecht, both the supply and take-up rate remained relatively stable in 213. The arrival of a WTC in the former Capgemini office was one of the most important developments of the last year. Take-up 213 Utrecht Rotterdam Eindhoven The Hague Amsterdam Source: Colliers International

2 Netherlands The Dutch office space market was not able to benefit from the slight improvement in economic sentiment. Indeed, the year got off to a sluggish start with problems in the Eurozone. In the third quarter, however, the economy came out of recession after shrinking for four consecutive quarters. The expectation is that 214 will bring a small amount of economic growth. In spite of this positive development, unemployment is still rising in the Netherlands. The total number of people without a job has doubled since the crisis began. In 213, the take-up rate stalled at around 1 million m², lower than the 1.1 million m² of 212. The number of transactions involving more than 1, m² could be counted on the fingers of one hand. Furthermore, for most large end users there was a decrease in the amount of space being used due to relocations and lease extensions resulting in a negative net take-up. It is the sixth consecutive year in which take-up has decreased in the Netherlands. Particularly Amsterdam and Rotterdam saw take-up rates fall in 213, while The Hague performed well, with a considerable increase in the take-up rate. Almost 6% of the total take-up occurred in the Netherlands five largest cities. areas that saw a great deal of activity were Almere, Amersfoort, Arnhem and Den Bosch. Just 1% of transactions were purchases made for the buyer s own use, while 9% were lease transactions. Supply seems to be stabilizing at around 7.2 million m², a level that has been stable for a number of years. Because of the limited number of new building projects and the conversion of various kinds of office buildings, supply is not increasing any further. However, for many of the properties on offer, conversion cannot offer a solution. The location of the properties is often crucial in this. In addition, many large companies are still downsizing or rationalizing their use of space, meaning that the supply is not falling. GDP, inflation and long-term interest 5,% 4,% 3,% 2,% 1,%,% -1,% -2,% -3,% -4,% 5,% Source: Colliers International/CPB Unemployment X GNP Inflation Long yield Source: Colliers International/CPB Take-up and supply Netherlands Absolute % 8,% 7,% 6,% 5,% 4,% 3,% 2,% 1,%,% 3,% 25,% 2,% 15,% 1,% 5,% ,% Take-up Supply Take-up/Supply ratio Source: Colliers International 2 Research & Forecast Report 213 Office Colliers International

3 Amsterdam: Large companies keep quiet The take-up of office space in Amsterdam fell by a disappointing 255, m² in 213. That represented a 2% drop from the 212 level. The take-up rate has not been so low in the region since 29. There was low take-up by major end users, with the largest transaction coming from Spaces, a multi-tenant business concept. Particularly in Amsterdam Zuidoost, where take-up was 1, m² in 212, the take-up figure was disappointing. Most of the office buildings around the Bijlmer ArenA station are already in use; however, this in stark contrast to the southern part of Zuidoost, where there is little movement and plenty of supply. There was more activity in the Zuidas area in 213, with the start of new building developments (Beethovenpark and 4 Beethoven). The centre of Amsterdam also saw more activity, meaning that the good progress made in 212 was continued. Supply rose slightly in 213, despite the limited number of new buildings and conversion projects. Zuidoost in particular saw an increase in supply. Takeup remains too low to bring down supply further. The expectation is that supply will continue to rise. Many large office users have excess space due to the economic situation, and in addition many are looking for more efficient ways of working. When leases come up for renewal, many are opting for less space than they previously did. In addition, several legal or business consultancy firms have already rented out or sub-let office space Take-up Amsterdam (m²) Supply Amsterdam (m²) Zuidoost Zuidas West Haarlemmermeer Zuidoost Zuidas West Haarlemmermeer Take-up by sector 213 Rental rates by district 5% 4% 7% 7% 8% 16% 17% 36% Business & other services Production & construction TMT Public services Financial services Transport & communications Wholesale & retail trade, hotel & catering Source: Colliers International High Low Average 3 Research & Forecast Report 213 Office Colliers International

4 The Hague: Highest take-up in years In 213, The Hague and the surrounding area saw the highest take-up rates since 27. The total take-up was around 13, m². One transaction involving 18, m² of office space by the engineering firm CB&I in the Beatrixkwartier of The Hague was also the largest transaction in the Netherlands. Along with the Beatrixkwartier, the centre of The Hague also saw a great deal of activity. A range of transactions involving semi-public organizations took place there. Examples include Leiden University and TNO, which leased large properties near Den Haag Centraal railway station. Supply in The Hague decreased slightly in 213, particularly in the Beatrixkwartier, as a result of various transactions in 213 such as the aforementioned CB&I transaction. The centre of The Hague, on the other hand, saw an increase in supply. Many properties that had been occupied by government branches become vacant. The expectation is that this is a sign of further expansion of supply still to come. The national government announced in 213 that more office space will be shed in the large-scale reorganization. There is also a large supply of office space in Rijswijk, where a large number of properties are standing empty in the Plaspoelpolder business park. Take-up The Hague (m²) Supply The Hague (m²) Rijswijk Laakhaven /CS Binckhorst Beatrixkwartier Rijswijk Laakhaven /CS Binckhorst Beatrixkwartier Take-up by sector 213 Rental rates by district Public services 1% 6% 18% 5% 5% 35% Production & construction TMT Business & other services % Financial services Transport & communications Source: Colliers International High Low Average 4 Research & Forecast Report 213 Office Colliers International

5 Eindhoven: ASML keeps take-up steady The year 213 turned out to be a meagre year for the office space market in Eindhoven, with take-up rates declining for the second year in a row. The driving force behind the market was ASML, a company which has experienced rapid growth over the past years. This growth was reflected in the company s take-up of office space. After taking on more than 6,6 m² of office space on the High Tech Campus in 212, they also leased over 1, m² at two locations in 213. This meant that ASML was responsible for a quarter of the take-up in the Eindhoven region in 213. This may have a positive effect on the office space market in Eindhoven because this kind of technological company often attracts many related companies. The majority of the ASML transactions are temporary as ASML is building more office buildings on it s own campus in Veldhoven. This dependency on just a few large companies is a threat to the office market of Eindhoven, as we saw previously in Eindhoven with the downsizings of Philips. On the supply-side several office buildings in the center of Eindhoven came on the market. Examples are the former Philips building at Mathildelaan, the old building of the municipality and the merger of three office locations of Woonbedrijf into a new building. This merger was the largest transaction of 213. Take-up Eindhoven (m²) 8. Supply Eindhoven (m²) Zuid en Oost West Noord Zuid en Oost West Noord Take-up by sector 213 Rental rates by district 22% 8% 6% 1% TMT Business & other services 34% Public services Production & construction % Wholesale & retail trade, hotel & catering High Low Average 5 Research & Forecast Report 213 Office Colliers International

6 Rotterdam: City centre becoming increasingly important The office market in Rotterdam showed no sign of recovery in 213, and take-up in 213 languished at its lowest level for the last six years. It is notable that the decline in take-up took place mainly outside the centre of Rotterdam. Transactions were concentrated in the city centre. In 28, only 32% of new transactions occurred there. Since then, this percentage has increased every year to reach 6% of the total take-up in 213. In spite of this, the centre is also suffering from a much lower demand for office space, the past year represented a six-year low point for the centre of Rotterdam. Despite the claim of the municipality of Rotterdam that 15, m² of office space was converted in the space of eighteen months, the supply of office space has risen steadily. This is also reflected in the centre of Rotterdam, where supply is currently over 4, m². In 213, just over 4, m² became available at Delftse Poort alone because of downsizing by Nationale Nederlanden. This makes it the second largest office building to let in the Netherlands, the largest being the former KPMG office in Amstelveen. Downsizing is not only occurring among private businesses in Rotterdam - the municipality of Rotterdam is also downsizing. The municipality has hired 4, m² in the newly completed building De Rotterdam, leaving behind 63, m² in the Marconitorens in Rotterdam West. Take-up Rotterdam (m²) Supply Rotterdam (m²) Zuid Oost Zuid Oost Capelle aan den IJssel Capelle aan den Ijssel Take-up by sector 213 Rental rates by district 9% 8% 5% 36% Business & other services Production & construction TMT % Financial services 15% 18% Public services Transport & communications High Low Average 6 Research & Forecast Report 213 Office Colliers International

7 Utrecht: WTC is stimulating take-up With total take-up of over 92, m², Utrecht had a reasonable year. This meant that take-up was just a fraction lower than in 212. Take-up in Utrecht was distributed fairly evenly across the different parts of the city. The only exception was Nieuwegein, where the take-up of office space was significantly lower. With a take-up to supply ratio of just 4%, this suburb performed much worse than, for example, Rijnsweerd- De Uithof, where the take-up to supply ratio was around 44%. An important development on the Utrecht office market in 213 was the arrival of a WTC in the offices formerly occupied by Capgemini. In mid-213, around 33, m² of office space was on offer here. In the second half of the year, several transactions took place at this location, making a total of 1, m². This development in Papendorp contributed to a fall in supply that could be seen by the end of 213 across the region as a whole in comparison to mid-213. Furthermore, the supply in Nieuwegein also decreased for the second year in a row, the decrease amounting to no less than 28%. Nevertheless, Nieuwegein remains a source of concern for the office market in Utrecht. This is because almost a quarter of the entire supply of office space in the Utrecht region is located in Nieuwegein. Take-up Utrecht (m²) Supply Utrecht (m²) Rijnsweerd / De Uithof Papendorp Nieuwegein Rijnsweerd / De Uithof Papendorp Nieuwegein 2. Kanaleneiland 1. Kanaleneiland / Stationsgebeid / Stationsgebied Take-up by sector 213 Rental rates by district 13% 1% 6% Public services 39% TMT Business & other services Financial services 5 14% Production & construction 18% Wholesale & retail trade, hotel & catering High Low Average 7 Research & Forecast Report 213 Office Colliers International

8 BIGGEST TRANSACTIONS BY DISTRICT DISTRICT BUILDING ADRESS M² TENANT AMSTERDAM Prins en Keizer Vijzelstraat Spaces Zuidas 4 Beethovenstraat Beethovenstraat 1. NautaDutilh West Teleport Basisweg 1 7. Alliander THE HAGUE Beatrixkwartier Haagse Poort Prinses Beatrixlaan CB&I /CS Former Ministry Schedeldoekshaven 12.5 Universiteit Leiden /CS New Babylon Bezuidenhoutseweg TNO EINDHOVEN De Nieuwe Wal Wal Woonbedrijf Zuid en Oost HTC 61 High Tech Campus ASML Veldhoven Beukendael De Run ASML ROTTERDAM Gebouw Weena Weena-Zuid 4.5 UPC Botersloothof Luzac College Westerlaantoren Westerlaan Vopak UTRECHT Rijnsweerd/De Uithof Archiparc Daltonlaan Hogeschool Utrecht Papendorp WTC Papendorp Papendorpseweg Unit4 /Stationsgebied Stadskantoor Stadsplateau Ministerie van VWS 8 Research & Forecast Report 213 Office Colliers International

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 Definitions Regions The regions in this report are composed as follows: - The Amsterdam region consists out of the municipalities of Amsterdam, Amstelveen, Diemen and Haarlemmermeer. - The 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. Supply Office space >5 m² that is offered in the free market. Available space exclusively includes existing and completed properties or properties under construction or renovation which have not already been taken off the market. Take-up Office space >5 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. Take-up/supply ratio The percentage of supply that has been taken up. Long yield Yield for the Dutch 1 year (state)bond. Unemployment According to the international (ILO) definition. 9 Research & Forecast Report 213 Office Colliers International

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