Utrecht Office Market Profile - Q2 2011
Ä Ä
* % Change for Prime Rents and Capital Values calculated using local currency
000s sqm 400
Market Overview
300
Supply increased slightly in Q2 and, following the reduction in Q1, the new vacancy rate of 13.3% was more in tune with 2010 levels.
200
Prime rents decreased by 2.2% in Q1 to €220 per sq m. This was led by a decrease in the Maliebaan area whereas rents were broadly stable elsewhere. The only other exception was the Papendorp district where the 70/30 ratio of office/alternative use has made it difficult to attract occupiers and there are plans to develop a second office park on the other side of the road which represents a further downside risk to this area. Rents here fell by €10 per sq m over the quarter. In the investment market around€21m was traded in the second quarter giving a total for H1 of €71m. Like the rest of the Netherlands the expectations for prime yields going forward are stable, with the next move potentially upwards given recent increases in ECB interest rates.
15 10 5
100 0 2000
0
Vacancy Total
Vacancy Rate
Figure 3: Rent (EUR) Prime Rent (psm pa)
Annual Rental Growth*
250
20 15 10 5 0 -5 -10
200 150 100 50 0 2000
There has been an increase in the amount under construction. The majority of this is already prelet and is focussed on the City Centre. There are plans for more starts, which would add some more leasing risk to the market especially as occupiers relocate leaving second hand space behind.
Vacancy Rate %
Rental Grow th
Prime Rent
Figure 4: Prime Yields Prime Yield (%) 7.5 6.5 5.5 4.5 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
Only around 14,000 sq m was let in Q2 bringing the total for the first half of the year to 39 million sq m, a slight improvement on H1 2010. Expectations for 2011 are subdued with few significant occupational requirements of any scale and no growth sector emerging.
H1'11
Figure 2: Vacancy
Prime Yield Source all Charts: Jones Lang LaSalle
10 Yr Av e
Q2 11
-35 bps
2010
0 bps
10y r Av erage
Q2'11
5.70
Take Up
Q2'11
3.8 %
2009
-2.2 %
2008
€ 3,860
12 Month Outlook
2010
Prime Yield %
Change* Q-o-Q Y-o-Y
0
2010
Capital Value (psm)
Q2 11
50
2009
16.4 %
2009
52.2 %
2007
134
2008
U/C (000s sq m)
100
2008
-2.2 %
2006
-2.2 %
2007
€ 220
2007
Prime Rent (psm)
150
2005
20 bps
2006
90 bps
2006
13.3
2004
Vacancy Rate (%)
200
2005
3%
Å Ä Ä Ä Æ
2004
7.1 %
2005
330
2004
Vacancy (000s sqm)
2003
55.6 %
2003
-43.9 %
2003
14
000s sqm 250
2002
Take-up (000s sqm)
Figure 1: Take-up
2002
Outlook
2002
Y-o-Y
2001
Q-o-Q
2001
Q2 11
2001
Summary Statistics
12 Month
2000
Change*
20 Yr Av e
Number Place/District 1 2 3 4 5 6 7 8 9 10
Utrecht Centre Utrecht Maliebaan Utrecht Rijnsweerd / Uithof Utrecht Lunetten / Stadion Utrecht Kanaleneiland Utrecht Overvecht Utrecht Lage Weide / Cartesiusweg Utrecht Papendorp Utrecht de Wetering Utrecht Leidsche Rijn Centre
Bordering Municipalities 11 Nieuwegein 12 Maarssen 13 Houten
Jones Lang LaSalle Contacts Jaap van Geloven Head of Office Agency – Utrecht Utrecht +31 6-50671088 jaap.v an-gelov
[email protected]
Eric de Clercq Zubli Head of Capital Markets Amsterdam +31 20 540 7883
[email protected]
Ruben Langbroek Head of Research Amsterdam +31 20 540 7831
[email protected]
Utrecht 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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