The Dutch office market is becoming increasingly bi-polar. The multifunctional areas located in major provincial cities are faring well. Examples of successful areas are areas surrounding the Amsterdam Arena in Amsterdam Southeast and the prime districts of provincial cities such as ‘s-Hertogenbosch and Eindhoven. Vacancy rates in these areas are lower than the average of the entire city and significantly lower than the monofunctional areas in the same city.
The investment market for office space is waiting for more action. It is to be expected that these investment transactions will pave the way for more deals in the coming future. Expected yield levels for (even fully let) office buildings in large provincial cities are becoming higher and higher. If investors take into account the risk of tenants leaving at the end of the lease periods and are able to adjust the purchasing yield accordingly, they will be able to create attractive opportunities for this kind of office property.
Conversion of large offices, as is taking place particularly in Amsterdam, is a positive development and should encourage other parties to take the challenge of solving the vacancy problem. More initiatives for solving the vacancy problem are to be expected from all concerned parties; owners and municipalities alike.
Source: http://www.cbre.eu/portal/pls/portal/res_rep.show_report?report_id=1723