Office City Profile Amsterdam Q4 2023
Explore Amsterdam's office market dynamics with our Q3 2023 Office City Profile. Gain insights on rentals, vacancies, investments, and prime yields.
- Sven Bertens
This report provides an overview of the Amsterdam office market as of Q4 2023, highlighting that demand has slightly decreased since the previous year, influenced by economic uncertainty and increased fit-out costs that are causing occupiers to adopt a wait-and-see approach and opt for more lease renewals. Despite this trend, certain areas like Zuidas and South-East have remained popular. The prime rent in Amsterdam has risen to €535 per sq m per annum, indicating a tight market with limited office space that meets occupier requirements. Office spaces with good connectivity, high-quality amenities, and shared facilities are particularly attractive to companies aiming to enhance the workplace experience to entice employees back into offices.
Concerning the investment market, activity in Amsterdam has notably decreased, with a year-over-year volume fall of -85%, amounting to approximately €197 million. This downturn is partly attributed to high interest rates affecting buyer and seller expectations. The report notes that while prime net initial yields (NIY) have remained steady at 4.75% as of December 2023, there is no anticipation for interest rate reductions until at least June of the following year.
