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Jones Lang LaSalle’s Zuidas Office Monitor shows above-average performance
EXPO REAL, 7 October 2013 – Whilst the 388,000 sqm H1 occupier take-up for the Dutch office markets was at its lowest for the past ten years, office take-up in Amsterdam Zuidas reveals a different trend.
Take-up in the Amsterdam Zuidas totalled 18,300 m² in the first half of 2013, well above the five-year average of 11,600 sq m. This trend is substantiated in the biannual Zuidas Office Monitor by Jones Lang LaSalle by instruction of Amsterdam Development Office Zuidas.
The supply trend in the Zuidas area also shows an opposite trend compared to the national picture. Current office supply in the Netherlands totals approximately 7.24 million sq m, which is almost 10 percent above the five-year average of approximately 6.6 million sq m. Supply in the Amsterdam Zuidas was approximately 55,100 sq m at mid-2013, more than 26 percent below the five-year average of 74,600 sq m. In addition, there is also a significant difference in current vacancy rates. In the Amsterdam Zuidas the current vacancy rate is around 8.5 percent, while the average vacancy rate in the Netherlands is about 14.8 percent.
The Zuidas district continues to attract the interest of international businesses. Examples of new located international occupiers are: South Stream Transport which recently signed a lease for approximately 4,200 sq m in the UN Studio building for its new European headquarters. Also CRH, a leader in construction materials, which committed to 1,600 sqm in The Rock for its new regional headquarters.
The appetite of foreign investors for Zuidas offices remains high too. In the first half of 2013 two major investment transactions took place. German based investor Union Investment bought the yet to be built headquarters of Akzo Nobel for approximately € 82 million while Luxembourg based Victory Advisors bought the Atrium building at Strawinskylaan for allegedly nearly € 100 million.
Klaas de Boer, Director Amsterdam Development Office Zuidas: “The major differences between the market dynamics on the Amsterdam Zuidas and those in the rest of the Netherlands once again confirm the strong competitive position of the Zuidas. The low vacancy rate even creates a new challenge because large office floors for new occupiers are becoming very scarce. Obviously that provides an opportunity for developers and investors because the Zuidas is one of the few locations in the Netherlands, where there is demand for new office space development. The Zuidas will therefore continue to expand, not only with offices, but also with homes and hotels. The strength of this location is indeed its great accessibility, combined with a unique blend of amenities. That combination is the basis for the attractive business environment.”
Sander van Winterswijk, Head of Leasing Offices of Jones Lang LaSalle adds to this: “We see that locations with good accessibility both by car and by public transport perform much better than mono-functional and remote office locations. The mix of functions and the international brand of the Zuidas ensure the attractiveness of the location for new, often international, parties such as South Stream Transport. The Zuidas is unique in the Netherlands in that it shows increasing scarcity of available office space due to the limited construction of new offices. This is already reflected in slightly declining incentives and as a result a slightly increasing net effective rent.”
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