The first quarter of 2021 was the strongest quarter in a year, with an office take-up of 69,591 sq m, compared to an average take-up of 55,000 sq m in the last three quarters of 2020. Just-Eat Takeaway (14,416 sq m) and ING (31,500 sq m) were the most important lease transactions in 2021Q1, responsible for 69% of the total take-up volume.

The type of companies leasing office space in Amsterdam shifted in the first quarter of 2021 compared to the first quarter of 2020. Take-up by financial services companies, traditionally important for Amsterdam, increased from 14.2% to 53.7%, making it the most active sector. The largest transactions in this sector were closed by ING Bank and DRW Europe Derivatives B.V. In addition to financial services, Technology, Media and Telecommunications (TMT) remains an important sector for the Amsterdam office market, as shown by recent transactions by Just-East Takeaway, Tellow and Fairphone.

Jordy Kleemans, Head of Research & Consultancy at Savills in the Netherlands, explains: “Slower decision making processes have contributed to an improved supply-demand ratio, as shown by the vacancy rates on the Amsterdam office market which have risen from 5.2% in 2020Q1 to 6.1% in 2021Q2. There are significant differences in vacancy developments in various office submarkets.”

IJsbrand Brunger, Head of Leasing at Savills in the Netherlands, adds: “Office supply has grown most significantly in the city centre of Amsterdam. One reason is that many high quality offices in this area were purchased pre-COVID-19 by investors who planned to renovate them and offer them to lease on a large scale. This increased the supply of office space. However, slower decision making combined with the uncertainty brought about by COVID-19 have resulted in less take-up and rental growth than anticipated.”

Jordy Kleemans adds: “However, the prospects for a future supply-demand equilibrium in the Amsterdam office market are positive. From 1 January 2023, all offices must have energy label C as a minimum and from 2030 label A will become the standard. At least 650,000 sq m of Amsterdam offices currently have energy label D or worse which is 11% of the current total stock. As a result, a large share of the Amsterdam office market is expected to be unlettable in 1.5 years, which will tighten supply, despite planned new builds.”

Read the full report here.