Savills News

Savills report: Office rents 34.2% higher near Dutch railway stations

Savills has unveiled a new report detailing critical trends shaping the future of the Dutch office market, emphasising the significant impact of location and accessibility. According to the study, offices near railway stations command rents that are 34.2% higher than those in less accessible locations, reflecting the premium on connectivity in today's hybrid work environment.

The report highlights a shift towards flexible work arrangements, with more than half of the Dutch workforce now working remotely at least part of the time. This change has spurred a 21.2% increase in median transaction sizes for office space from 2020 to 2023, compared to the earlier period of 2016 to 2019. This increase can be explained by changing space requirements. The office must, increasingly, be multifunctional, says Savills.

Wouter van 't Grunewold, author of the report, emphasises the crucial role of strategic site selection. "The evolution of the office sector demands that we stay ahead of workforce trends. Our findings suggest that the future success of an office space will hinge on its ability to meet the new expectations of accessibility and multifunctionality."

Ellen Waals, Head of Agency at Savills in the Netherlands, points out that the ease of commute will dictate office demand: "According to recent Savills research, 31.3% of Dutch office stock is now within a 1,000-metre radius of major railway stations, aligning with the Corporate Sustainability Reporting Directive for sustainable commuting. Our data shows a significant preference for these locations, where office space has increased by 2.4% to 15.0 million square metres despite a shrinking overall market, and also enjoys 13.3% higher rental growth compared to more remote areas. This underscores the strategic importance of accessibility in today’s office market."

"We would have liked to analyse whether buyer demand would also be higher near train stations, as we indeed see in the occupier market," says Jordy Diepeveen, Director of Office Investment at Savills. "However, due to the significant decline of 53.7% in investment volume in the Dutch office market in 2023, it is not possible to conduct a robust analysis. Nonetheless, in daily practice, I notice that interest in the Dutch office investment market tends to be centred around train stations."

The comprehensive study by Savills offers invaluable insights for developers, investors, and corporate tenants navigating the complexities of the office market in the Netherlands and beyond. To read the full report, visit: https://insights.savills.nl/the-office-market-of-the-future-nl/p/1

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