Amsterdam Office Market Profile - Q2 2011
-25 bps
Ä Ä
* % Change for Prime Rents and Capital Values calculated using local currency
Market Overview The leasing market in Amsterdam remains subdued. The volume witnessed in Q2 was an improvement on Q1 (a significant 81%) but was in itself about average and as a result there was little meaningful decrease in supply. This environment of subdued demand and stable supply is expected to persist and the only movement in supply has been witnessed in the very best space where there has been a slight downward trend. The market is still characterised by a large amount of oversupply, particularly in more peripheral areas. In the medium term this could reduce as the municipality is actively encouraging hotel conversion outside of the City core to account for a lack of hotel rooms. Occupiers generally remain very cautious, as they do in the Netherlands as a whole, given the situation in the Eurozone. Moves are still driven more by cost containment. Unsurprisingly there has been no movement in prime rents or secondary rents although there is a risk that incentives could increase later this year as the market tries to encourage greater supply absorption. In the investment market investors remain risk averse, with only privates who benefit from local knowledge looking beyond prime. Around €90 m was traded in Q2 driving the H1 total to €166m. The sale of the Tom Tom HQ to RealIS for €38m drove volumes. Like rents, prime yields are stable at 5.45% and are expected to remain so for the short to medium term, although upward rate increases by the ECB may eventually drive some yield movement.
H1'11
2010
2009
2008
Figure 2: Vacancy Vacancy Rate %
000s sqm 1,500
20 15
1,000
10 500
5
0
0 Vacancy Total
Q2'11
0 bps
10y r Av erage
Vacancy Rate
Figure 3: Rent (EUR) Prime Rent (psm pa)
Annual Rental Growth*
400
20
380
10
360
0
340 320
-10
300
-20
Rental Grow th
Q2'11
5.45
Take Up
Prime Rent
Figure 4: Prime Yields Prime Yield (%) 6.5 6.0 5.5 5.0 4.5
Prime Yield Source all Charts: Jones Lang LaSalle
10 Yr Av e
Q2 11
4.6 %
2010
0%
2010
Prime Yield %
€6,147
12 Month Outlook
2009
Capital Value (psm)
Change* Q-o-Q Y-o-Y
2000
Q2 11
0
2009
53.5 %
2007
8.9 %
2008
161
2008
U/C (000s sq m)
200
2006
0%
2007
0%
2007
€335
400
2005
Prime Rent (psm)
Æ Æ Ä Æ
2006
-40 bps
2006
-10 bps
2004
17.1
2005
Vacancy Rate (%)
2005
-3.1 %
2004
-1.1 %
2003
1,108
2004
Vacancy (000s sqm)
000s sqm 600
2003
Å
2003
11.9 %
2002
128.5 %
2002
54
2002
Take-up (000s sqm)
Figure 1: Take-up
2001
Outlook
2001
Y-o-Y
2001
Q-o-Q
2000
Q2 11
2000
Summary Statistics
12 Month
Q1 96 Q1 97 Q1 98 Q1 99 Q1 00 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10
Change*
20 Yr Av e
Number Place/District 1 2 3 4 5 6 7 8 9 10
Amsterdam Centre Amsterdam South Amsterdam Buitenveldert Amsterdam West Amsterdam Sloterdijk / Teleport Amsterdam South - West Amsterdam South - East Amsterdam North Amsterdam Zuidas Amsterdam East
Bordering Municipalities 11 12 13 14 15 16
Amstelveen Hoofddorp Beukenhorst - West Hoofddorp Beukenhorst - East Hoofddorp Beukenhorst - South Schiphol Rijk Schiphol Centre
Jones Lang LaSalle Contacts M artijn Sm its Head of Office Agency Am sterdam +31 20 540 7898 m artijn.sm
[email protected]
Eric de Clercq Zubli Head of Capital M arkets Am sterdam +31 20 540 7883
[email protected]
Ruben Langbroek Head of Research Am sterdam +31 20 540 7831
[email protected]
Amsterdam Office Market Profile – Q2 2011 Pulse reports from Jones Lang LaSalle are frequent updates on real estate market dynamics. www.joneslanglasalle.eu
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