The vacancy rate of office buildings in the Amsterdam region is increasing again. Despite a better economy now almost 16 percent of the Office floor in Amsterdam is empty. The Zuidas is the only office area in Amsterdam where the vacancy rate has dropped over the past year.
Last year an average of only 6 percent of the nearly 700,000 square feet of office floor in the area was for rent, dangerously close to the 5% that the real estate world will find acceptable. The vacancy ths year will be expected to rise, because six office buildings-together good for 60,000 square feet of office floor-are build and added.
Old office buildings left behind
The Atrium complex on the Strawinskylaan currently will be expanded with two office towers and one will start the construction of the Gold star complex on the Mahler Avenue. The new buildings are already largely rented out, but for 12 percent of the new Office floor is still tenants wanted. Most of the newcomers in the area let older office buildings elsewhere in Amsterdam behind empty. So are the former office buildings of accountant Deloitte and law firm AKD on Sloterdijk currently empty because they have moved the past two years to new buildings at the Zuidas.
Interesting for foreigners
This year also many free space in existing Zuidas towers will occur because Akzo Nobel, Stibbe and Nauta Dutilh will move to newly build constructions in the area. As a result, almost forty thousand square meters ‘ old ‘ office floor will be vacant. There also will be plenty of space released into the existing UN Studio tower now Netherlands investment bank RBS ends its activities.
The low vacancy rate makes the area according to broker Jones Lang Lasalle to be interesting for foreign real estate owners. Nearly half of the buildings in the area are owned by foreign investors, especially by German real estate parties. Only last week the first Asian real estate owner to the Zuidas was reported.
On place 28 of the world
The Zuidas should apply as the main office area in Netherlands-worldwide, the skyscrappers near the A10 are not important. Admittedly, the average rent for newcomers at the Zuidas on average went up with 1.4 percent last year to 345 Euros per square meter, on other top locations in the world rents went much further up.
The total expenses on the Amsterdam Zuidas are about 512 euros per square meter. The Zuidas is found on place 28 this year of the rent list that broker Cushman Wakefield annually presents. Last year, the office area was placed on the 22nd place. London’s West End is with 2344 euros per square meter per year the most expensive office market in the world. On place 2 and 3 follow the central business district of Hong Kong (1636 euros) and New York Midtown (1162 euros).
Worldwide office rent rose by 7 percent.