No recovery
With a take up of 1.3 million m² of office space in 2010, no recovery is visible. Only a few office users show any movement. Many tenants focus on relocation, concentration and shrinkage through substantial cutback rounds.
Partly because of this, supply has increased to a record of 7.1 million m².
Top rents are stabilising
Top rents in the office market remained stable in most cities last year. Top rents in the Netherlands are around € 325/m². Incentives have increased, however. Due to the high stock of office real estate, users have a strong
negotiating position.
Office use under pressure
The office market is increasingly transforming into a replacement market. The different use of office space as a consequence of ‘new working’, for example, puts permanent pressure on use. If the market does not adapt, this will result in the further dislocation of supply and demand.
Benefits of a regional approach
Not all of the Netherlands is experiencing high office vacancies. The high vacancy levels are concentrated primarily in a limited number of municipalities and urban regions. In the short term, therefore, optimal progress can be made by adopting a regionally differentiated approach to vacancies. About 20 regions together contain almost two-thirds of the total vacancies.
Acceptance by stakeholders
In the long term, a more coordinated approach is necessary, and many players realise this. The government, provinces, municipalities and sectoral associations adopted a joint plan of approach during the ‘Offices Summit’.
Its implementation requires endurance.
A different view is needed
New buildings continue to emerge. At the same time, insufficient property is being withdrawn from the market.
Nevertheless, vacancy levels are still increasing. New building will adapt, but, even so, the number of square metres will increase in the coming years. Another vision is therefore necessary with regard to demolition and transformation. Therein lies the difficulty. Demolition is not a ‘low-hanging fruit’ in the Netherlands. For all players, the task at hand will be extremely difficult.