Amsterdam Office Market
Profile Q4 2014
EMEA Office Research
* % Change for Prime Rent and Capital Values calculated using local currency
Office Market Overview
Office leasing volumes in Q4 reached a high level with 95,087 sq. m
in transactions. This was similar to levels recorded at the end of 2013
and more than double the amount reached in Q314. Total take-up for
2014 reached over 228,000 sq. m the largest annual figure since
2010. The most notable deal was by CMS Derks Star Busmann
acquiring 7,000 sq. m of grade A office space in the Zuidas district.
Another notable deal totalling over 5,000 sq. m was by ICL who
acquired 5,490 sq m of grade B office space in Western Amsterdam
at a cost of 170 / sq m pa. A large amount of office space was
withdrawn from the market in Q4 through the conversion to other
uses. Despite this the vacancy rate remained stable at 15.8%. The
core markets are performing well and with vacancy decreasing,
landlords are beginning to consider increasing asking rents for the
best space. So far no transactions have been completed beyond
345 per sq. m pa and looking at the market overall it remains
broadly tenant favourable. Over 7,000 sq. m of new office space was
delivered to the market in Q4. One notable completion in Q4 was by
Nabesa (Scientology Kerk) which refurbished 4,709 sq. m of office
space in Eastern Amsterdam. A further 2,500 sq. m of office space
was delivered in Q4, also in Eastern Amsterdam. Prime rents
remained stable over the quarter at 345 / sq. m pa and could
increase slightly over the next 12 months. 2015 will see the delivery
of 88,021 sq m of office space, mainly within the Zuidas district.
56,855 sq m of new completions will be delivered in Q4 with the
majority already pre-let. 2016 and 2017 will see the delivery of over
100,000 sq m of new office space, again mainly based in the Zuidas
district. Total office investment volumes reached around 1.2 billion
in 2014, as the investment market continued to strengthen. Prime
yields moved in from 5.45% to 5.20% and further compression is
expected in the next 12 months as investors continue to target core
assets.
Take Up
2014
10yr Average
Figure 2: Supply and Vacancy Rates
Vacancy Rate %
000s sqm
1,400
1,200
1,000
800
600
400
200
0
20
15
10
Vacancy Total
Vacancy Rate
Figure 3: Prime Rents and Rental Growth
Prime Rent (psm pa)
Annual Rental Growth*
400
380
360
340
320
300
Rental Growth
2014
-30 bps
2013
-25 bps
2014
5.20
2013
2012
8.9 %
2013
4.8 %
2012
6635
2012
Prime Yield %
12 Month
Outlook
2011
Capital Value (psm)
Q4 14
Change*
Q-o-Q
Y-o-Y
2011
2011
3%
2010
0%
2010
345
2010
Prime Rent (psm)
2009
2009
90 bps
2009
0 bps
2008
15.8
2008
Vacancy Rate (% )
000s sqm
600
500
400
300
200
100
0
2008
2007
-2.4 %
2007
117 %
2007
95
2006
Take-up (000s sqm)
2006
Outlook
2006
Y-o-Y
2005
Q-o-Q
2005
Q4 14
Figure 1: Take-up
2005
Summary Statistics
12 Month
Prime Rent
Figure 4: Prime Yields
Prime Yield (%)
6.50
6.00
5.50
5.00
4.50
Q4 98
Q4 99
Q4 00
Q4 01
Q4 02
Q4 03
Q4 04
Q4 05
Q4 06
Q4 07
Q4 08
Q4 09
Q4 10
Q4 11
Q4 12
Q4 13
Q4 14
Change*
Prime Yield
Source all Charts:
JLL
10 Yr Ave
20 Yr Ave
3.5
3
2.5
2
1.5
1
0.5
0
Office Market Map
www.jll.eu
JLL Contacts
Martijn Smits
Head of Office Agency
Amsterdam
+31 20 540 7898
[email protected]
Dr van Leeuwen
Head of Capital Markets
Amsterdam
+31 20 540 7912
[email protected]
Sven Bertens
Head of Research
Amsterdam
+31 20 540 7926
[email protected]
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