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Office space rental market Amsterdam: Vacancy rates in 2020 + estimation of next years

by Inside Network
December 28, 2019
in Office space, Real Estate
Amsterdam Canals

With the Netherlands being one of the most popular locations in the world to do business, it is no wonder that the rental market in Amsterdam is so fast-moving. The rental market in the Dutch capital is characterised by low vacancy levels and high prices, and this trend is set to continue in 2020 and beyond.

Up to 2019

According to Knight Frank, the availability of vacant office space for rent in 2019 stood at 9.1% This figure takes all the suburbs and areas surrounding the city centre into account and the lowest vacancy rates can be found in the city centre itself. The surge in demand for Amsterdam office space is mainly due to the incentives offered by the Dutch government. These incentives and benefits lure more and more businesses into the Dutch capital and the result is a shortage of both residential and commercial real estate.

Many of the older office/commercial buildings in Amsterdam have been converted into housing and as a result, the available office space has decreased significantly in the last few years. This drop from a total of 1.2 million square metres of office space in 2016 to less than 470 thousand square metres in 2019 is likely to continue driving rental prices upwards. The largest shortage can be seen in the large office space category ( 1500+ employees ) While it may be possible for businesses to find smaller office spaces with relative ease, large spaces are difficult to find in the city centre.

Beyond 2020

Several new building projects are underway in Amsterdam and on completion, these projects will add urgently needed office space to the overburdened Amsterdam rental market. One such project, the expansion of the world trade centre, will add 32000 square metres of office space and is set to be completed in the next year.

Areas outside of Amsterdam city centre are also experiencing growth in terms of property development, which will add further office space and alleviate the current shortage. The addition of this extra space will also aid in making rental prices more affordable and open possibilities for more companies and investments.

In conclusion

Although the Amsterdam office space rental market is crowded and demand far outweighs supply, the city remains attractive to businesses who want to set up shop. As a result, property specialists are investing in the area and the available properties are set to increase in the future.

Tags: AmsterdamGrowthVacancy rates

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