Office Market Report H1 215 The Netherlands
1 135 THE NETHERLANDS The market for office space does not seem to be benefiting from the continued economic recovery. Approximately 374, m² of office space was leased in the Netherlands in the first half of 215. Although this represented a slight increase (5%) on the same period of 214, demand for office space remains below previous years. The Amsterdam region (23%) and the Rotterdam region (15%) represented the largest share of the total take-up of office space in the Netherlands. In addition to other hotspots for the market in office space in cities such as The Hague, Utrecht and Zwolle, there was also a relative rise in activity in Gouda, where 1, m² of office space was leased. Take-up in Arnhem, Den Bosch and Eindhoven was disappointing in the first half of the year. Only two transactions involving over 1, m² took place: The National Police leased some 16,4 m² of office space in Rotterdam Alexander and Shell leased 1, m² in The Hague. The third large transaction of the year also involved the National Police: 9,6 m² of office space on Koggelaan in Zwolle. Business service was the most active category of companies, there was also relatively high demand for new office space from the manufacturing and production sector. The Shell transaction gave this demand an enormous boost. In addition to the National Police, other government-related agencies were also active: transactions occurred in the name of various educational institutions and the social insurance agency, UWV. Technology companies (TMT) leased office space in Amsterdam and Eindhoven, but outside these cities their share was limited. The activity of companies in financial services, a main driver of the office demand before the last financial crisis, was limited. The total market supply of office space stood at 7.3 million m² in mid-215, a slight increase of 2% compared to the end of 214. This represents around 15% of the total stock of office space in the Netherlands. Supply is increasing mainly because many companies are leaving behind larger premises in order to move into smaller offices. The observed trend break of increasing vacancy in contrast to the decrease of the last few years makes it difficult to forecast future vacancy trends and figures. This change forces to focus even more on how to deal with the high level of hidden vacancy in the market. Conversion projects and a low volume of construction projects should ensure stabilisation but there clearly is a need for more innovation and care to tackle increasing supply. Take-up by sector H1 215 3% 2% 3% 8% 26% 14% 19% 25% Business & other services Production & construction Public services TMT Other Transport & Tourism Financial services Wholesale & retail trade, hotels & catering Take-up 8-215 74 Supply 212-215 1 73 1 7 71 8 9 21 211 212 213 214 215 Nederland 7 212 212 213 213 214 214 215 x1, m 2 Take-up H1 x1, m 2 Mid year End year 4 1 3 145 2 Office Market Report H1 215 The Netherlands 14
THE NETHERLANDS AVERAGE RENTAL RATES A7 8 7 AMSTERDAM P.4 Average 18 8 3 THE HAGUE P.5 A4 A1 A5 Average 14 2 1 ROTTERDAM P.7 Average 135 4 9 1 6 A12 7 UTRECHT P.8 Average 145 A1 5 8 EINDHOVEN P.6 Average 12 Top 1 office transactions the Netherlands H1 215 MUNICIPALITY PROPERTY NAME ADDRESS M² USER 1 Rotterdam New Tide Marten Meesweg 35 16.4 Nationale Politie 2 The Hague O2 Building Oostduinlaan 2 1. Shell international 3 Zwolle Le Carré Koggelaan 3 9.6 Nationale Politie 4 Rotterdam Hofpoort Hofplein 2 7. Spaces 5 Middelburg Het Groene Woud 1 5. Hogeschool Zeeland 6 Gouda Hanzeweg 16 4.4 JP van Eesteren 7 Purmerend Gorslaan 6 4.3 Bose 8 's-hertogenbosch Burgemeester Burgerslaan 4 4. Novar 9 Rotterdam Mathenesserlaan 24 3.8 Parnassia Bavo Groep 1 Dordrecht Weizigtweg 33 3.6 UWV 3 Office Market Report H1 215 The Netherlands
71 Nederland 7 AMSTERDAM 1 Take-up of office space in the Amsterdam region in the first half of 215 was 87, m², which 145 represents the lowest six-monthly level recorded since 9. 74 3 In the first half of 214, take-up was some 14, m². The limited number of 73 large transactions 14 this year has been especially remarkable. Whereas last year there were 1 transactions involving over 5, m², the largest transaction of this year was 7 135 for just 4,4 m² and involved an educational institution in 1 Amsterdam Sloterdijk. Amsterdam 71 In recent years, 13 core locations like the Zuidas district of Amsterdam and the city centre area have seen significant numbers of transactions, but this year 8 9 21 211 212 213 214 215 Nederland 7x1, m the most activity has been in Amsterdam Sloterdijk and the surrounding area. Take-up H1 This trend has been driven by relatively favourable rents and improvements in facilities, which has led to increased interest in this district of the city. The accessibility of the area has also improved significantly due to the construction 15 of the second Coentunnel and the A5 motorway. 8 The supply of office space in the Amsterdam region rose slightly overall (by 12 1 1%) to 1.453 million m². One reason for this increase was that De Oliphant, 9 7 145 a building in the Zuidoost district, is being refurbished as The Sharing Tower and is once again available for rent. Most of the supply is located in the 6 Zuidoost and West 6districts of the city. At core locations such as the Zuidas, 14 3 supply is currently limited. However, in the next few years supply here will Den increase, haag however, as more buildings come onto the market, such as the Stibbe and AkzoNobel buildings (end 215/216). 135 The limited momentum of the first half of 215 will continue into Amsterdam the remainder 13 of the year. The attraction of Amsterdam as a business location remains strong; 212 212 213 213 214 214 215 however the majority of transactions involves relocations to smaller office x1, m 2 Mid Year locations. The exceptions 3 to this trend are mainly technical companies, which 8 End Year continue to thrive in Amsterdam with the Centre as main location. 28 6 Take-up by sector H1 215 Eindhoven 11% 19% 5% 4% 26 4% 1% 24 22 85 8 Business & other 75 services Rotterdam TMT Production & construction 7 Public services Financial services Other Transport & Tourism Wholesale & retail trade, hotels & catering 48 46 4 Office Market 44 Report H1 215 The Netherlands 42 24% 32% Rental rates by district Den haag Sloterdijk area High 195 q Average 147 p Low 85 A4 Schiphol area High 325 Average 149 q Low 1 Eindhoven 4 8 4 7 2 6 A1 3 15 28 1 26 22 12 p q Rental development last 6 months 8 85 4 8 A8 South Axis High 36 p Average 325 5 24 p Low 27 p A1 Centre High 3 p Average 229 q Low 125 q Southeast High 195 p Average 142 q Low 8 Take-up 8-215 Supply 212-215 A1 A1
135 1 Amsterdam 13 THE HAGUE In the first half of 215, approximately 32, m² of office space was leased in The Hague, which 8 is almost 3% less than one year earlier. This means that take-up in the first half of 215 was at its lowest level since 21. There were three transactions 7 involving over 5, m². Shell leased 1, m² of office space at Oostduinlaan 2. A total of 21 transactions took place in the region. Government-related agencies, which are the main users of office 6 space in The Hague, accounted for only 13% of the total take-up. Den As haag in previous years, demand for office space was the highest around the Central Station and in the Beatrixkwartier area of the city. In peripheral locations such as Binckhorst and Forepark the situation remains Amsterdam much more challenging: demand for office space is still low in these locations. Just one transaction took place in Rijswijk. The supply of office 3 space in The Hague fell by 7% in the first half of 215 to 626, m². This fall was largely due to the conversion of the former vacant 28 office building, Kortenaer, measuring 15, m², and the Shell transaction. About a quarter of available supply is located in Rijswijk, while in the area 26 surrounding The Hague Central Station supply is also high. In the years to come, 24 the supply of office space in The Hague will continue to rise due to the continuation of the national government s programme 22 of selling off real estate. Although piecemeal demand will continue to Eindhoven come from other government agencies and business, this will be too low to resolve the current structural oversupply of office space. Conversion projects in vacant office buildings, which have already taken place Den haag to some extent in the city centre of The Hague, will be needed to address the remainder of the oversupply. Take-up by sector H1 215 85 Nederland Rental rates by district 71 7 15 12 1 9 145 6 14 3 135 8 9 21 211 212 213 214 215 x1, m 2 Take-up H1 13 8 6 8 4 7 2 6 3 15 28 212 212 213 213 214 214 215 x1, m 2 Take-up 8-215 Supply 212-215 Mid Year End Year 9% 8 1 26 13% Rotterdam 75 7 37% Eindhoven 5 24 Statenkwartier High 165 22 Average 14 Low 125 Beatrixkwartier High 215 p Average 18 Low 125 A4 14% 48 46 26% 44 Production & construction 42 Utrecht Business & other services Other 4 Public services TMT 12 CS/Voorhout High 225 8 Average 17 p Low 125 85 4 8 75 Rotterdam 7 A4 Rijswijk High 15 Average 11 Low 7 A12 p q Rental development last 6 months 48 5 Office Market Report H1 215 The Netherlands 46
6 3 Den haag EINDHOVEN 3 There was limited 28activity in the office market in Eindhoven during the first half of 215. Total take-up came in at 14, m², slightly lower than the 17, m² recorded 26 in the same period of 214. Only ten transactions of over m² took place: The largest transaction involved a technology company in Veldhoven 24 (3,4 m² of office space). The remaining take-up consisted mainly of companies in business services. 22 The centre of Eindhoven remains the most important business location, Eindhoven accounting for approximately 4% of the total take-up. Other areas where office space was leased included Eindhoven Zuid (High Tech Campus) and Veldhoven. The primary demand for office space in these areas Den came haagfrom technology companies. The largest category remained business services. Supply fell slightly in Eindhoven (by 4%), finishing up at a total of 278, m². The fall in supply was partly due to the conversion project in the Zwarte Toren building, representing approximately 7, m². The majority of supply is situated in the West/Airport district, but a great deal of office 85 space remains available in the centre, including over 12, m² in the Kennedytoren building. 8 The level of demand for office space in Eindhoven will continue in the remainder of the year. The center of Eindhoven and Fight Forum will 75 continue to attract office occupiers, however large transactions will hold Rotterdam off. In most cases the transactions come from companies that relocate within the region 7 Eindhoven and to smaller locations. Exceptions on this trend are expanding (technological) companies such as AMSL. Eindhoven The supply will continue to decrease because of several transformations of office buildings to apartments. Amsterdam 135 13 8 6 8 4 7 2 6 3 15 28 1 26 5 24 22 12 x1, m 2 Take-up 8-215 8 9 21 211 212 213 214 215 x1, m 2 Take-up H1 Supply 212-215 212 212 213 213 214 214 215 Mid Year End Year 48 Take-up by sector H1 215 46 4% 44 7% 42 Utrecht 8% 4 51% Rental rates by district 8 85 A5 4 8 75 Rotterdam 7 North High 135 Average 99 q Low 62 q 3% West/Airport High 14 q Average 111 q Centre High 185 Average 134 q Low 79 q Low 69 q 48 46 Business & other services TMT Financial services Production & construction Other Veldhoven High 125 Average 11 p Low 85 A67 Utrecht 44 42 4 A67 p q Rental development last 6 months 6 Office Market Report H1 215 The Netherlands
Eindhoven 22 ROTTERDAM Den haag Approximately 57, m² of office space was leased in the Rotterdam region in the first 85 half of 215. This represents the highest six-monthly volume of the past three years. This rise occurred mainly because a number of relatively large 8 transactions took place. For example, the National Police leased over 16,4 m² of office space in Rotterdam Alexander and Spaces leased 7, m² 75 in the Hoftoren building. Rotterdam Whereas in recent years over 6% of the take-up of office space had always been located in 7 the centre of Rotterdam, take-up was distributed more evenly throughout the city for in the first half of 215. Rotterdam Eindhoven Alexander, in particular, saw more activity. Partly due to its easy accessibility by both car and public transport, this attracts companies. The supply of office space fell by approximately 8% in the first half of 215, compared to the end of 214. This fall in supply had three causes. First no additional stock 48 has recently been added and there is little new-build currently in the pipeline. Secondly, the National Police, Spaces and other parties all needed 46space to expand during the first six months of this year. And finally, the conversion of properties including the former customs building on Westzeedijk 44 ensured that supply fell further. It seems that the 42 market for office space in Rotterdam will continue to Utrecht stabilize over the coming six months. Demand for office space is picking up and the amount 4 of new-build planned is very limited. Companies will continue to make internal corrections by shedding excess office Rotterdam space. However this is not expected to lead to a significant increase in supply. 6 3 15 28 1 26 5 24 22 8 9 21 211 212 213 214 215 x1, m 2 Take-up H1 12 8 85 4 8 75 7 Take-up 8-215 Supply 212-215 212 212 213 213 214 214 215 x1, m 2 Mid Year End Year Take-up by sector H1 215 Rental rates by district 48 14% 5% 5% 3% 2% 39% Utrecht 46 A13 44 42 Centre 4 High 235 East High 18 Average 135 Low 9 A16 Average 15 Low 9 Capelle aan den IJssel High 15 q A4 Average 115 Low 6 33% Business & other services Public services Production & construction Transport & Tourism TMT Other Wholesale & retail trade, hotels & catering A15 South High 225 Average 14 Low 9 9 A16 p q Rental development last 6 months 7 Office Market Report H1 215 The Netherlands
Rotterdam 75 7 UTRECHT Eindhoven Approximately 25, m² of office space was leased in the Utrecht region 48 in the first half of 215. This represents double the volume recorded during the same period 46 one year earlier. However, it is still lower than the same periods between 8 and 212. No major transactions took place in the Utrecht region, the 44 largest transaction was 2,8 m² which took place on Daalseplein. 42 Most activity took place in the city centre / Central Station area, where Utrecht approximately one 4 third of the take-up took place. Demand for office space in Papendorp was limited in the first half of 215, with Rotterdam only two transactions totalling 1,6 m². In 214, this area accounted for a quarter of total take-up, including a transaction involving Bol.com. Just one transaction took place in Nieuwegein. The supply of office space increased by approximately 1% in the Utrecht region in the first half of 215 to 493, m². This increase was largely due to the former Atos office, Secoya, becoming available for lease on the market in its entirety. A total of 31, m² of office space is now available for lease. This makes Papendorp the district with the largest available amount of available office space in the municipality of Utrecht (93, m²). Over the past six months, it has been announced that a new office development will be started on Jaarbeursplein. A new World Trade Centre of approximately 32, m² will be constructed on the site of the Leeuwensteijn office building. It is scheduled for completion in Utrecht 218. This development represents a continuation of the development of the area around the central station in Utrecht, where the Municipal Office was completed in 214. These developments will further strengthen the station area as office location. 5 24 22 12 Take-up 8-215 8 85 4 8 75 8 9 21 211 212 213 214 215 x1, m 2 Take-up H1 7 Supply 212-215 48 46 44 42 4 212 212 213 213 214 214 215 x1, m 2 Mid Year End Year Take-up by sector H1 215 Rental rates by district 6% 4% 2% 12% 46% Centre/CS-area High 25 q Average 175 p Rijnsweerd/De Uithof High 19 Average 155 q Low 125 Low 14 p 14% 7 A12 16% Business & other services Public services Production & construction TMT Other Transport & Tourism Wholesale & retail trade, hotels & catering Papendorp High 18 Average 16 Low 13 Nieuwegein High 14 Average 115 Low 9 Kanaleneiland High 185 Average 14 Low 95 7 A12 p q Rental development last 6 months 8 Office Market Report H1 215 The Netherlands
Acknowledgements This report has been prepared with the utmost care by the research team of Colliers International consisting of Kes Brattinga and Thijs Guinee. If you have any questions or remarks please contact us through amsterdam.research@colliers.com 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 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 > 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 > 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 H1 215 The Netherlands
52 offices in 67 countries on 6 continents United States: 14 Canada: 31 Latin America: 24 Asia Pacific: 193 EMEA: 18 1.7 billion in annual revenue 157.5 million square metres under management 16,3 professionals and staff Primary Authors: Kes Brattinga Head of Research Research +31 ()2 54 55 55 kes.brattinga@colliers.com Thijs Guinée Research +31 ()2 54 55 55 thijs.guinee@colliers.com Colliers International Amsterdam Buitenveldertselaan 5 182 VA Amsterdam Nederland TEL +31 ()2 54 55 55 Colliers International Eindhoven Dillenburgstraat 25-9 5652 AM Eindhoven Nederland TEL +31 ()4 212 11 1 Colliers International Rotterdam REMS Bahialaan 4 365 WC Rotterdam Nederland TEL +31 ()1 412 18 15 Colliers International Rotterdam Corporate Solutions Botersloot 27 311 HE Rotterdam Nederland TEL +31 ()1 412 35 About Colliers International Colliers International Group Inc. is a global leader in commercial real estate services with more than 16,3 professionals operating out of 52 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include agency, asset & property management, consultancy, corporate real estate solutions, facility management, hotels, investments, project management, retail, research, valuation & advisory and workplace innovation. Colliers International has been recognized and ranked in the International Association of Outsourcing Professionals global outsourcing top-1 for 1 consecutive years, more than any other real estate services firm. Colliers International Rotterdam Westersingel 94 315 LC Rotterdam Nederland TEL +31 ()1 511 99 55 colliers.com Copyright 215 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.