Amsterdam, 7 October 2024 – Figures from international strategic real estate advisor Cushman & Wakefield show that absorption of new office space over the first three quarters of 2024 reached 560,000 sq. ft. This puts the recorded transaction dynamics of leasing and buying transactions of office space in the user market a fifth higher than at the end of the same period last year (+20%).
Around 60% of the square office space leased in 2024 was in the five largest cities, with Amsterdam traditionally accounting for the largest share (21%). With an absorption 115,000 sqm, the transaction dynamics in the capital is at a lower level than last year and its share in the total Dutch absorption is smaller at 21%. Last year, Amsterdam recorded high take-up attributable to demand for new, high-quality office space in easily accessible locations in the city. This led to a relocation chain of companies already located in Amsterdam.
Office relocations within cities
This year, the same trend can be seen in other cities. In The Hague, for example, where the Rijksvastgoedbedrijf is in the process of realizing its sustainability ambitions, this has already led to the purchase of approximately 75,000 m² from other office users in the citadel. The purchase of Prinses Beatrixlaan 23 and Lange Houtstraat 8 are particularly exemplary in this regard. Sustainability and compatibility with hybrid working have prompted the Volksbank in Utrecht to literally look one door further from 2026, as evidenced by the acquisition of approximately 20,000 m² of the then fully renovated and Breeam Excellent office building Hojel City Center II. In 's-Hertogenbosch, the bank will exchange its current highway location for a location near the intercity railway station à 4,000 m². In Rotterdam, starting next year, Unilever will leave its current headquarters on the Weena for 7,000 m² of office space in AIR Offices in the center of Rotterdam and 5,000 m² in the center of Amsterdam with the lease of Bloomhouse on the Singel. Both offices are located in the vibrant heart of the cities and anticipate hybrid working, meeting and experiencing. This creates a good environment for attracting and retaining talent.
Rising demand for sustainable and centrally located offices
With take-up 20% higher than the same period last year, office market sentiment has improved. Office users who move are almost without exception making a quality move and in this context prefer sustainable office buildings located in locations with excellent accessibility and where all possible facilities are within easy reach. Office users are thus betting on maximum support for the hybrid work concept. However, this does not necessarily mean less square meters, but a different way of using space in alternative locations. More than ever, office buildings are being realized in vibrant living and working environments, where people can get the best out of themselves both professionally and personally. This indicates a shift in demand for specific types of offices: high-quality, sustainable buildings in prime locations in the centers of major cities.
The current search demand translates into stable supply and vacancy trends with rising rent levels. This indicates polarization in the office market, caused by the scarcity of desirable, high-quality offices. Office users tend to have the same search demand for new accommodation, causing selective upward demand pressure in the top segment of the market. If the search demand remains unsuccessful, second best is generally not sought, but the lease is extended briefly until suitable office space becomes available that does meet all requirements.
