The Dutch office market is stabilising at a lower level than before the pandemic. A structural shortage of high-quality supply, demanding occupiers, and a hesitant investment market are currently shaping the playing field. This is revealed by the latest research from international real estate advisor Cushman & Wakefield on developments in the Dutch office market.
In the first quarter of 2025, approximately 195,000 m² of office space was let – an increase of 11% compared to a year earlier. However, overall activity in the occupier market remains significantly below pre-COVID levels. Over half of national take-up (107,000 m²) occurred in the five major cities, with Amsterdam showing the strongest growth, recording around 52,000 m² – up from 33,000 m² in the same period of 2024. A combination of supply shortages, high construction and material costs, and cautious investment decisions is constraining both occupier and investment markets. The sector is moving towards a new equilibrium, with flexibility, efficiency, and location quality emerging as key differentiators.
Investment market shows early signs of cautious recovery
After a period of wait-and-see behaviour, the office investment market is showing tentative signs of movement. While a strong rebound was still anticipated at the end of 2024, that optimism has since been tempered. Investors are taking a strategic stance in an economically uncertain environment, where certainty is prioritised over speed. Financing rates are increasingly being fixed early to mitigate risk.
Investors are selective and place high demands on office investments. The willingness to invest remains and capital is available, but transactions are only materialising where pricing is sharp and the product is future-proof. A broad recovery in investment volumes is not expected in the short term, although underlying interest in high-quality assets remains stable.
Amsterdam: the paradox of quality vacancy
Amsterdam presents a mixed picture. On the one hand, office take-up is rising sharply; on the other, vacancy – particularly in the city centre – is also increasing. Booking.com’s relocation to its new headquarters on Oosterdokseiland in 2023 released a considerable amount of office space across twelve buildings in the city centre. These spaces are gradually returning to the market after redevelopment and sustainability upgrades, but re-letting is progressing slowly. The tech sector – traditionally a strong presence in the centre – is displaying caution, contributing to rising vacancy levels in Amsterdam.Structural shortages hamper demand growth
Take-up is clearly constrained by the lack of high-quality office space. Buildings with strong energy performance, modern facilities, and good accessibility – particularly those near intercity rail stations – are scarce, while demand for this type of space is highest. At the same time, occupier requirements are consolidating, as companies are structurally occupying less space due to changes in office usage.This dual development – reduced demand for space and a lack of suitable supply – is widening the gap between demand and availability. That mismatch is becoming increasingly visible.
At the same time, this capex aversion is driving increased demand for plug-and-play, flexibly designed office spaces. This often involves turnkey solutions with minimal upfront investment. Property owners are responding by dividing office floors into smaller, easily lettable units, or partnering with specialised operators offering flexible workspace concepts. This is giving rise to new leasing models better aligned with tenant and landlord preferences for efficiency, scalability, and flexibility.
Rising costs, ESG dilemmas, and limited development capacity
The most obvious solution to the shortage of high-quality supply – new development – is proving difficult to realise. High construction costs, rising land prices, nitrogen restrictions, and protracted permitting procedures are making it challenging for developers to deliver viable business cases. As a result, the pipeline for new developments remains limited, especially in cities such as Rotterdam and The Hague, where current supply is already tight. While large-scale premium projects are underway in Amsterdam and Utrecht, supply still lags behind structural demand.Meanwhile, ESG objectives are under pressure. Whereas sustainability used to be a decisive factor in location choices and investment decisions, the high cost of ESG upgrades – combined with economic uncertainty – is increasingly acting as a brake.