According to the latest research from Savills total office investment volume in the Netherlands’ four main markets of Amsterdam, Rotterdam, The Hague and Utrecht reached €400m in the first half of 2013, which is 6% above the average half year volumes since 2009.
According to the latest research from Savills total office investment volume in the Netherlands’ four main markets of Amsterdam, Rotterdam, The Hague and Utrecht reached €400m in the first half of 2013, which is 6% above the average half year volumes since 2009. Broken down by city, the international real estate advisor notes that this is mainly due to significant activity in Amsterdam where turnover for office assets totaled €285m, which is considerably higher than the €180m half year average volume since 2009 recorded in the Dutch capital. Amsterdam’s H113 turnover makes up 72% of the total volume recorded in these four top markets. Key Amsterdam transactions in this period include purchases of the Atrium (€100.0m), Akzo Nobel (€82.0m), Admiraal de Ruijter (€30.8m) and Marina Offices (€19.5m).
The firm highlights that yields have remained stable over the past six months with no widening of the gap between prime and secondary yields. Savills attributes this to a rising level of interest from value-add and opportunistic investors for secondary properties who are attracted by some competitive price levels in the Dutch market.
Clive Pritchard, head of Savills in the Netherlands, says: “The interest from value-add and opportunistic investors, both domestic and international, is substantially increasing and we expect to see this interest turn into more transactions in the second half of 2013.”
On the occupier side ongoing economic challenges in the Netherlands resulted in relatively low take-up levels in H113. Total office take-up in Holland’s four largest agglomerations reached 230,000 sq m in this period representing a year-on-year decrease of 22%. Of these four markets The Hague is the only city that recorded a rise in demand with take-up totalling 62,800 sq m, an increase of 32% on H112. In terms of location, Savills research finds that occupiers are more than ever favouring mixed-use submarkets, particularly city centres and CBDs. In H113, 40% of take-up in these four markets was in such locations, compared to an average of 25-30% during the post economic crisis period 2009 to 2012.
Coen de Lange, head of agency at Savills in the Netherlands, says: “There is an ongoing qualitative shift in occupier demand towards mixed-use areas, which provide lively surroundings for office workers. This is evident in tenant demand for city centre office space as well as other mixed-use locations, including the Amsterdam South Axis and the ArenA area in Amsterdam Southeast.”