A COMPREHENSIVE OVERVIEW OF THE CURRENT AMSTERDAM OFFICE MARKET.
The latest research report ‘City Special Amsterdam - Surplus or impending shortage when the dust clouds of COVID-19 have settled?' contains several conclusions that can be drawn based on the current developments in the Amsterdam office market.
Key findings
- The historic economic downturn of 2020 is barely visible in the take-up figures for Amsterdam. Current demand mainly comes from companies in the IT, business and specialist business services sectors (89%).
- Companies will be operating in a more hybrid form, in which employees are given the opportunity to work in different locations. The coming period will reveal how companies plan to use offices in the future.
- The supply-demand ratio in the Amsterdam office market has improved during the pandemic. Vacancy rates rose from 5.2% in 20Q1 to 6.1% in 21Q2. The Amsterdam city centre witnessed the greatest increase in vacancies.
- Compared to 2019, the investment market did not perform well in 2020. Investors battled for the ‘core’ product, keeping these initial yields stable or putting them under further pressure.
- The speed at which the sustainability upgrades are performed is almost three times as high as in recent years, however, a whopping 305,000 sq. m. will become unlettable in 2023 as a result of more stringent legislation.
- Despite the planned new-builds, the market may even become tighter.
- Continuing to selectively add sustainable offices is necessary to continue to meet future demand to enable Amsterdam to retain its current competitive position in the market.