Spring Real Estate Office Market Outlook. Amsterdam region H User Market Investment Market

Transcription

1 Spring Real Estate Office Market Outlook Amsterdam region H User Market Investment Market

2 Spring Real Estate Laan der Hesperiden DX Amsterdam + () info@springrealestate.nl

3 Spring Real Estate Index Introduction Market Overview User Market Investment Market Conclusion Market Outlook Definitions

4 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Net take-up in m (x) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Volume in m. (x) Amsterdam region Introduction After seven years of financial crisis, the signs of a resurging real estate market in the Netherlands can no longer be denied. As both institutional and private-equity investors expand their commercial real estate investments, mostly financed by foreign capital, the office market in the Amsterdam region has reached its highest investment volume since. Almost, square meters of office space has changed hands, reflecting a total investment volume of nearly. bn euros. This is an increase of nearly percent compared with. The interest of foreign investors is mainly the result of the significant impairment of property since the start of the financial crisis in, causing attractive purchase prices and high yields. There is a lack of domestic investors when it comes to large transactions. Yet, they are overrepresented regarding sales. Due to a low investment volume in -, domestic investors could barely adjust their portfolio with income from sales. Therefore, investors are taking the opportunity to reallocate their assets, now that foreign investors have less trouble funding their investments. There is a notable shift among domestic investors from direct property investments to listed property shares. Cumulative investments over time Forecast In addition, a large share of the investment volume is attributable to a large supply of prime office space under construction. Only a few commercial property developers have survived the financial crisis, by developing or redeveloping sustainable and customized office space in prime office locations and selling it with long-term lease agreements to large institutional investors with low yield. The investment volume that has been recorded in the first half of is lower than in previous years. This is mainly caused by the fact that most of the prime offices in the region changed ownership in and. In line with both and, it is foreseen that the investment volume will take a significant sprint in the second half of. The upcoming liquidation of funds will contribute to this sprint. While the investment volume grew significantly between and, the take-up volume in was just slightly higher than the previous year. In general, the effective demand for office space shows continous decline, due to a decline in the average space needed per employee. The majority of the take-up in both and consisted of () large long-term rental agreements in office space still under construction and () location or relocation of firms to secondary office locations due to cost-saving considerations. Examples of the latter are ING Bank in Zuidoost (, m²) and Atos Benelux in Amstelveen (, m²). Large rental agreements in the first half year of have not been seen as yet. Top investment transactions H Building Area Buyer Seller in m. /m². Leeuwenburg Amstel Vastint Van der Vorm. Paleis justitie* Centrum M Rijksvastgoed,. INIT Centrum Lone Star Pramerica,. Zuiderhof I Zuidas First Sponsor AEW Europe,. Beethoven Zuidas HIH Global invest G&S Vastgoed, * Purchased with the purpose of transformation Cumulative net take-up over time Spring Real Estate Spring Real Estate is a nationally operating, independent real estate consulting firm. We specialize in advising investors and owner-occupiers of commercial real estate. Spring Real Estate consists of a team of highly motivated and experienced property consultants who are able to supply a complete range of services. Forecast We provide our advice based on the following core values: - Independent and efficient services - High level of knowledge - Transparant Procedures We advise all actors in the real estate market and we are always able to advise our clients from an independent position. We are a dynamic organization with short lines of communication with our clients. We have a stong multidisciplinary network from which we strive to always increase our knowledge. This knowledge enables us to continuously improve our services. Top rental transactions H Building Area Trans. type Tenant m² /m². The Edge Zuidas New lease Henkel,. The Edge Zuidas New lease Salesforce.com,. Vijzelstraat Centrum New lease Credit mgmt,. Q-Port Sloterdijk New lease Credit mgmt,. Alpha Towers Centrum New lease Greetz,

5 Amsterdam region Market Overview. Zuidas: the central business district of the Netherlands. Zuidas is still in rapid development and contains primarily high quality office space. Zuidas is located on both sides of the south-ring of the A Highway, between the Amstel river and Schinkel river.. Centrum: the old centre of Amsterdam, characterized by great diversity. Offices are mainly concentrated in the Canal District, the Central Station area and along the shore of the IJ river.. Zuidoost: major urban sprawl from the s and 's. Zuidoost is situated between and the A/A/A highways. Offices are mainly concentrated around the Bijlmer ArenA station and along the A. There is a significant difference between the offices north and south of the A highway.. Sloterdijk/Westpoort: major secondary office location, mostly developed between the s and 's. It is located in the north-west of Amsterdam and houses both large-scale offices as well as major industrial activity.. Oud-zuid: situated between Centrum and Zuidas, for the most part developed in the th century. Oud-Zuid includes the richest neighborhoods in the Amsterdam region. The office market in Oud-Zuid is as diverse as the office market in Centrum, including both very expensive and high-quality office space and office space with a relatively lower quality.. Amstel station: prime office market situated on a peninsula on the eastern shore of the Amstel River. The Amstel station area includes only a few, yet very large, office buildings, developed between the s and early 's.. Hoofddorp: one of the larger secondary office markets in the Netherlands, situated south-west of Amsterdam Airport Schiphol. Hoofddorp includes both low-quality office space developed in the s and 's as well as high quality office space developed in recent years.. Schiphol: situated in direct proximity to the Amsterdam Airport Terminal, containing WTC Schiphol Airport and other large-scale office buildings.. Schiphol-Rijk: situated between the Amsterdam Airport Schiphol and Hoofddorp, developed before the turn of the century.. Amstelveen: a municipality south of Amsterdam. The office market in Amstelveen is a large and for the most part secondary market. It contains relatively many office buildings developed in the s and the 's.. Riekerpolder: a former polder developed into a business park in the s and the 's. It is situated near the A/A junction, between Zuidas and. It therefore acts as a southern gate of Amsterdam.. Houthavens: former industrial area, specialized in the trade of timber. Houthavens is currently under rapid urban development. It is situated on the southern shore of the IJ river in close proximity to Centrum and Oud-West.. Overamstel: in previous years a mediocre business park along the shore of the Amstel river. Overamstel is currently being transformed into a multifunctional area, due to large-scale residential development.. Zuid/Buitenveldert: Zuid is the area on the western shore of the Amstel river and contains only a few large office buildings. Buitenveldert is the area between Amstelveen and Zuidas, and includes both new as well as relatively old office buildings. The areas are seperated by the A highway.. Noord: large multifunctional district north of the IJ river. A large part of the stock was recently developed, while the rest of the stock is relatively old.. : a large multifunctional area east of the Amstel river. It includes relatively new offices on the south shore of the IJ river, new developments in Amsterdam Science Park and the relatively old offices on Wibautstraat.. : secondary office market situated along west-ring of the A highway. It has fierce competition from surrounding office locations.. Oud-west: includes few large office buildings, mostly developed in s and 's. The office stock is in great decline due to transformation.. Nieuw-West: urban sprawl from the s. Nieuw-West includes a few office buildings, mainly owner-occupied by municipal enterprises.. : a municipality south-east of amsterdam. The office stock in is in great decline due to demolition of obsolete offices. Large-scale withdrawals and developments from previous years have led to healthy office markets;

6 Amsterdam region User Market Under const. /in redev. # Current stock in m² (incl. stock under construction/in redevelopment) Area Stock in m² # Zui. Zuidas,, > bn..- bn..-. bn... bn..-. bn. <. bn. Cen. Centrum, Zui. Zuidoost,,, Slo. Sloterdijk/Westpoort, Ou. Oud-Zuid, Am. Amstel station, Ho. Hoofddorp,, Sch. Schiphol, Sch. Schiphol-Rijk, Am. Amstelveen, Rie. Riekerpolder, Ho. Houthavens,, Ov. Overamstel,, Zui. Zuid/Buitenveldert, No. Noord, Oo., We., We. Oud-west, Nie. Nieuw-West, Die., Net rental take-up in relative to stock >% -% -% -% -% <% Take-up in Relative to Area m² stock Zui. Zuidas,.% Cen. Centrum,.% Zui. Zuidoost,.% Slo. Sloterdijk/Westpoort,.% Ou. Oud-Zuid,.% Am. Amstel station.% Ho. Hoofddorp,.% Sch. Schiphol,.% Sch. Schiphol-Rijk,.% Am. Amstelveen,.% Rie. Riekerpolder.% Ho. Houthavens,.% Ov. Overamstel,.% Zui. Zuid/Buitenveldert,.% No. Noord.% Oo.,.% We.,.% We. Oud-west,.% Nie. Nieuw-West,.% Die.,.% Current supply in m² relative to stock >% -% -% - % -% <% Area Supply in m² Vacancy rate Zui. Zuidas, %-% Cen. Centrum, %-% Zui. Zuidoost, %-% Slo. Sloterdijk/Westpoort, %-% Ou. Oud-Zuid, %-% Am. Amstel station, %-% Ho. Hoofddorp, %-% Sch. Schiphol, %-% Sch. Schiphol-Rijk, %-% Am. Amstelveen, %-% Rie. Riekerpolder, %-% Ho. Houthavens Ov, %-% Zui. Overamstel, %-% No. Zuid/Buitenveldert, %-% Oo. Noord, %-%. We., %-% We., %-% Nie Oud-west, %-%. Nieuw-West, %-% Die., %-%

7 Zuidas Centrum Zuidoost Sloterdijk/w Oud-Zuid Hoofddorp Schiphol Schiphol-rijk Amstelveen Houthavens Overamstel Nieuw-west Share of net take-up Zuidas Centrum Zuidoost Sloterdijk/Westp Oud-zuid Amstel station Hoofddorp Schiphol Schiphol-Rijk Amstelveen Riekerpolder Houthavens Overamstel Zuid Noord Oud-west Nieuw-west Net take-up in m (x) Completerd/withdrawn in m (x) Stock in m (X) Amsterdam region User Market The stock continues to grow due to high demand for new office buildings. * Recently completed offices are mainly concentrated in Centrum, Zuidas and Houthavens. * The financial crisis has led to a decline in the demand for office space. As a result, there has been a strong trend visible in withdrawing obsolete office space since. * Withdrawn offices are mostly transformed into hotels and residences. * In, the stock decreased due to the large-scale demolition of, m² of office space. * Construction of new buildings has been significantly lower since the financial crisis Withdrawn Completed Stock Stock over time The largest net take-up in was measured in Zuidas, Centrum and Zuidoost. * For the Amsterdam region, the net take-up volume was just slightly higher in. * The net take-up in the core markets decreased substantially in compared with. * The net take-up in relatively poor areas increased substantially compared with. This indicates an increase in firms that choose secondary office locations due to cost-saving considerations. * The increased net take-up in Zuidoost is distorted by the relocation of ING. * Houthavens scored a high net take-up relative to its stock, due to the large supply of new offices. Net take-up - per area Core markets appear to be diverse in take-up, while the value-add markets are more specialized. * Zuidas has a wide variety of sectors. Yet the legal sector as well as the banking & insurance sector remain large. Its take-up consists mainly of large, long-term rental-agreements. * With several retailers opening headquarters in Houthavens, the area is strongly clustered. * The telecommunication sector is mainly concentrated in Sloterdijk and Schiphol-rijk. * Consultancy firms and the human resources sector tend to choose secondary office locations. * The take-up of the IT sector is widely spread over all markets within the Amsterdam region. % % % % % % % % % % % Net rental take-up by sector Telecommunications Retail Real Estate Other Legal IT Industry Human Resources Health Care Food & Beverage Facility Services Consultancy Construction Banking & Insurance Media & Advertising

8 Amsterdam region Investment Market Volume Volume H # Investment volume per area in (>,,) Area in m. in m. # > m. Zui. Zuidas # m.- m. Cen. Centrum m.- m. Zui. Zuidoost m.- m. Slo. Sloterdijk/Westpoort m.- m. Ou. Oud-Zuid Am < m.. Amstel station Ho. Hoofddorp Sch. Schiphol Sch. Schiphol-Rijk Am. Amstelveen Rie. Riekerpolder Ho. Houthavens Ov. Overamstel Zui. Zuid/Buitenveldert No. Noord Oo. We. We. Oud-west Nie. Nieuw-West Die. Average net rent in /m² > < * Bandwidths of the gross rents deducted by the average incentive level, adjusted for outliers. Net rent Incentives in Area /m²* months Zui. Zuidas - -. Cen. Centrum - - Zui. Zuidoost - - Slo. Sloterdijk/Westpoort - - Ou. Oud-Zuid - - Am. Amstel station - - Ho. Hoofddorp - - Sch. Schiphol - - Sch. Schiphol-Rijk - - Am. Amstelveen - - Rie. Riekerpolder - - Ho. Houthavens - - Ov. Overamstel - - Zui. Zuid/Buitenveldert - - No. Noord - - Oo. - - We. - - We. Oud-west - - Nie. Nieuw-West - - Die. - - Investment style per area Core Value-add Opportunistic Area Zui. Zuidas Cen. Centrum Zui. Zuidoost Slo. Sloterdijk/Westpoort Ou. Oud-Zuid Am. Amstel station Ho. Hoofddorp Sch. Schiphol Sch. Schiphol-Rijk Am. Amstelveen Rie. Riekerpolder Ho Ov. Houthavens. Overamstel Zuid/Buitenveldert Zui. No. Oo. We. We. Nie. Die. Noord Oud-west Nieuw-West

9 United States Netherlands Belgium Germany England Israel Scotland Sweden France Volume in m. (x) Zuidas Centrum Zuidoost Sloterdijk/Westpoort Oud-Zuid Amstel Station Hoofddorp Schiphol Schiphol-Rijk Amstelveen Riekerpolder Houthavens Overamstel Zuid/Buitenveldert Noord Oud-west Nieuw-west Net /m per year Zuidas Centrum Zuidoost Sloterdijk/Westpoort Oud-zuid Hoofddorp Amstelveen Riekerpolder Houthavens Net /m per year Amsterdam region Investment Market Great diversity in purchase prices, especially within the ring road. * Average observable purchase prices were the highest in Zuidas and Oud-Zuid. * There is great competition among international investors to purchase prime office space on Zuidas. * Long term lease agreements of major tenants reflects high prices against low yields. * The lowest observable purchase prices were measured in and Sloterdijk. * Some markets seem to have completely bottomed out. * Low prices allow investors to withdraw office space by transforming it into residences or hotels. Dispersion of transaction prices based on - Incentives tend to magnify differences between core regions and value-add regions. * While the highest gross rents are paid in the areas with the lowest level of incentives, the areas with a low rent-level are characterized by a high level of incentives. * The highest net rents are paid in Zuidas, ranging from /m² to /m². * Oud-Zuid contains the largest spread, ranging from /m² to /m². * The dispersion of monofunctional areas deviates towards the bottom of the market. * This indicates that the bottom of the market is significantly different in quality to nearby offices. Dispersion of net rent per area Germans purchase in core, American and Dutch investors go for value-add. * German investors are responsible for m. in core regions, underlining their core status. * German investors invested m. in high-quality office space in value-add markets. * American investors, mostly private-equity funds, invested for m. * American investors carried out most of the portfolio deals, located in value-add areas. * Domestic investors are responsible for a large share of smaller transactions. * Domestic investors invested m., mostly with acquisitions below m. Purchases nationality vs investment style in Opportunistic Value-add Core

10 Vacancy rate Vacancy rate Vacancy rate Amsterdam region Conclusion The Amsterdam region includes no opportunistic markets relative to the national average. * The national average net rent is approx. per m². The national vacancy rate is approx. %. Considering this, no area within the Amsterdam region has an opportunistic status. * Most areas within the Amsterdam region can be described as value-add, despite the high vacancy rate in some areas. * Five core markets can be identified within the Amsterdam region, although some are at risk of losing this status, due to an increasing vacancy rate. % % % % % % % Opportunistic Value-add Core Net /m per year Zuidas Centrum Zuidoost Sloterdijk Oud-Zuid Amstel Station Hoofddorp Schiphol Schiphol-Rijk Amstelveen Riekerpolder Houthavens Overamstel Zuid/Buitenveldert Noord Oud-west Nieuw-west The Amsterdam region has five core office markets, with high net rents and low vacancy rates. * Zuidas is the best performing area within the Amsterdam region. * Oud-Zuid has the highest vacancy rate among the core markets but excels in net rental level. * There is a significant risk of Oud-Zuid losing its core status. * The Amstel station area has the lowest vacancy rate among the core markets. * Centrum has a lower vacancy rate than Oud-Zuid, due to its competitive net rent. * Schiphol has the lowest net rent among the core markets with an above average vacancy rate. % % % % % % % Net /m per year Zuidas Centrum Oud-Zuid Amstel Station Schiphol Large-scale withdrawals and developments in previous years have led to healthy markets. * Riekerpolder is considered to be an slightly above average office market, due to a healthy ratio between the net rent and vacancy rate. Riekerpolder is expected to maintain its current position. * Due to rapid urban development in previous years, Houthavens is considered to be an average and healthy office market. It is expected that the vacancy rate in Houthavens will decrease. * Nieuw-West has a low vacancy rate due to transformation. * has a low vacancy rate mainly due to largescale demolition and transformation. % % % % % % % Net /m per year Riekerpolder Houthavens Nieuw-west

11 Vacancy rate Vacancy rate Vacancy rate Amsterdam region Conclusion The following areas will remain under the threat from increasing vacancy rates: * Hoofddorp contains a huge amount of relatively old office space. An increase in the vacancy rate is therefore expected. The limited transformation capabilities will lead to a decrease in net rent. * While large-scale residential developments are taking place in some parts of Overamstel, the majority of the area is monofunctional and mediocre. * Due to a delay in a new metro line, the accessibility of Noord remains poor. Therefore Noord has competition from nearby areas such as Houthavens. % % % % % % % Net /m per year Hoofddorp Overamstel Noord Due to high vacancy rates, further withdrawals in the following markets are expected: * Zuidoost will resurge as an attractive 'value-formoney' office location. * Further transformation of unlettable office space will occur in Sloterdijk. * The net take-up rate of Schiphol-Rijk in indicates a sign of recovery in the necessitous area. * Transformation will occur in Amstelveen, as a large proportion of the current supply lacks potential. * Of all areas, the showed the highest vacancy rate. Withdrawals are foreseen. * Oud-west has great potential for the residence market. Therefore further withdrawals are expected. % % % % % % % Net /m per year Zuidoost Sloterdijk Schiphol-Rijk Amstelveen Oud-west An adjustment of excessive rents will decrease the vacancy in the following markets: * In Zuid/Buitenveldert the high vacancy rate is the result of excessive rents. * shows great potential due to the fact that the larger share of the stock was recently developed. An adjustment of the rent is foreseen in order to reduce the vacancies. % % % % % Zuid/Buitenveldert % % Net /m per year

12 Amsterdam region Outlook Zuidas The coming years Zuidas will be under significant threat of an increasing vacancy rate, as large companies such as Stibbe, AkzoNobel and NautaDutilh continue to leave their old offices to occupy their new office space within the same area. In addition, the Royal Bank of Scotland announced it will scrap at least to jobs, the majority of which is currently housed on Zuidas. Furthermore, construction on the Amsterdam Zuid station and A highway is foreseen to cause major inconvenience with respect to the accessibility of Zuidas over the next ten years. Yet, it is foreseen that investors will remain attracted to the Zuidas area due to the continued demand for high quality office space and high net rents. Centrum Because of the diversity in both building quality and location quality within the Centrum area, it is impossible to make an unambiguous prediction for the whole area. The Centrum area will continue to be difficult to access by car, both in terms of travel time and lack of parking spaces, while its accessibility by public transport offers little to no advantage relative to other areas. Large offices, which are situated on the main avenues, such as IJDock, Prins en Keizer and erdokseiland, will maintain their competitive advantage with respect to the canal district, where major international tenants remain absent due to fragmented office space. Zuidoost Zuidoost sees the highest available stock of office space. Allthough the takeup volume in indicates signs of a market with a decreasing vacancy rate, the number is highly distorted by the relocation of the ING bank to Zuidoost. Yet, due to the accessibility and multifunctionality of the area and the 'value for money' of the office space, it is expected that Zuidoost will see a reduced vacancy rate in the coming years. Sloterdijk/Westpoort Where Zuidoost will resurge as an attractive high-quality/low price office location, the other major secondary office market within the Amsterdam region is betting on a large-scale transformation of its unlettable office space. Sloterdijk/Westpoort will transform from a rather unattractive office location to a more mixed and multifunctional area. The location and accessibility of Sloterdijk/Westpoort lends itself to include residential (mainly student housing) and hotel development. In line with previous years, investors will continue to purchase fully vacant office buildings at a very sharp price per square meter to () put them up for transformation and () put them on the market with highly competitive rental prices. Oud-zuid The diversity in Oud-Zuid is similar to the diversity in Centrum. While areas within Oud-Zuid show the highest net rent in the Netherlands, the large-scale offices close to Zuidas are of poorer quality. The unexpected high vacancy rate that is observed is mainly concentrated in large and obsolete offices close to the highway. It is expected that the vacancy rate in these office buildings will decrease in the coming years, mainly due to their competitive price relative to adjacent offices in Zuidas. Amstel station The office location in the vicinity of the Amstel station can be defined as a real core market. With excellent accessibility by both car and public transit and highquality office space with a landmark feature, the vacancy rate tends to be lower than in Zuidas area. It is expected that redevelopment of the current stock will play a key role over the coming years in order to maintain the strong position of the area. Hoofddorp The office market in Hoofddorp is one of the larger secondary office markets in the Netherlands, in close proximity to Amsterdam Airport Schiphol. The market in Hoofddorp will remain twofold; there is a huge amount of relatively old office space with low net rents and high vacancy rates, while in recent years high quality and sustainable office buildings have been added to the stock. As international companies (Bluewater, TNT, Fluor) continue to elect Hoofddorp as the location for their new headquarters, core investors will continue to acquire these high quality pre-let developments. Investors will continue to purchase relatively poor office space, mostly as portfolio deals, for a sharp price per m², to relaunch it for highly competitive rental prices. In addition, transformation of office space is expected in areas adjacent to residential areas. Schiphol The office market of Schiphol will remain a prime office location within the Netherlands. Expansion of the current stock seems to be restricted by land supply as well as height. Therefore supply level is low and under pressure, causing low vacancy rates and high rents. Schiphol-Rijk In contrast to the office market in Schiphol, the office market in Schipholrijk has been poor for years. The vacancy rate in Schiphol-rijk is among the highest in Amsterdam region, while the net rent is among the lowest. The development of Schiphol-Rijk is the result of planning optimism at the end of the previous century, when there was great demand for office space. Within this area, office use is the only potential use for the buildings. Therefore, there is only limited scope for transformation within Schiphol- Rijk. The rather non-diversified stock suffers from the competition of similar supply in Hoofddorp. Yet, the net take-up volume in indicates a sign of recovery, due to the expansion of UPC (. m²). Amstelveen The office market in Amstelveen has to deal with a high vacancy rate. The stock is composed of relatively large office buildings, of which most are relatively poor. Yet, the positioning of Amstelveen between Amsterdam Airport Schiphol and Zuidas and its accessibility are excellent for business. Large international companies such as Atos and Nestle have chosen Amstelveen in previous years for its 'value for money'. A large proportion of the current supply has little potential to ever be used as an office again. Therefore it is expected that the obsolete office space in relatively well-off locations will be upgraded and relaunched in the market. Obsolete offices in relatively poor locations will be transformed into housing or hotel. Examples of the latter is the recently purchased office building 'Bavinckstaete' by the Van der Valk Hotel Group. Riekerpolder The office market in Riekerpolder is considered to be the most healthy office market in the value-add category. Its vacancy is low and the net rents are above average. In addition, Riekerpolder is easily accessed by car due to its proximity to both the A and the A highway. Yet, there was no significant take-up in the area in. Houthavens After a long history of industrial activity, Houthavens is one of the last areas within the highway-ring undergoing major area development. With the headquarters of Calvin Klein, Hugo Boss, Diesel and Gaastra, Houthavens is becoming an important cluster for the retail sector. Furthermore, it has proven to be highly attractive to the creative industry including media and advertisement companies. The coming years, Houthavens will be expanded to a succesful multifunctional area. It is expected that the vacancy rate will remain low, due to its attractive location near the IJ river and its proximity to Centrum.

13 Amsterdam region Outlook Definitions Overamstel The vacancy rate of the Overamstel area is just below average and the net rent level is just above average. The coming years, Overamstel will transform from a traditional and average office location to a multifunctional area, by means of both large-scale residential developments and high-quality office space with a landmark feature. Examples are the recently completed headquarter of G-Star Raw. Zuid/Buitenveldert Zuid/Buitenveldert has good accessibility and borders the Zuidas area on the east and the south side. Therefore the net rental level is above average. Yet, the area has a high vacancy rate. The vacancy rate is mainly the result of relatively poor and old-fashioned office space. It is expected that both redevelopment of its large-scale offices and transformation into hotels and residential properties will play a key-role in the coming years. Noord The recently developed offices in Noord remain concentrated around the NSDM-Werf, an attractive and trendy multifunctional area with a small number of large-scale office buildings, containing strong landmark features, on the shore of the IJ estuary. Noord, and in particular the NDSM-Werf, has competition from nearby developments in Houthavens with similar stock and demand from similar sectors (creative industrial firms and large retailers). In the coming years, Noord will be exposed to many residential developments, but the development of office space will be limited due to the mediocre accessibility both by car and by public transport. The vacancy rate in is among the highest within the Amsterdam region. Its vacancy rate is mainly concentrated in the area of the Eastern Docklands. Yet the vacancy rate is in decline, due to a high net take-up rate in. In the coming years, the industrial areas in adjacent of the Eastern Docklands (Cruquiusweg) will be further developed, primarly into a residential area. In addition, it is foreseen that the relatively poor office buildings in the Eastern area will be transformed for residential use. Of all areas, has the highest vacancy rate. Relatively poor and vacant office buildings are overrepresented in the area. Yet, the area has potential due to its good accessibility by both car and public transport. In the coming years, investors will continue to withdraw office space against a very sharp price per square meter for transformation. Oud-west In the relatively small office market in Oud-west, transformation of poor and obsolete offices for other uses will continue to decrease the vacancy rate in the area. There will remain a particular demand for housing in the area. Nieuw-West The office market in Nieuw-West is the smallest in the Amsterdam region. The stock is mainly owner-occupied by the municipality and is characterized by a low vacancy rate. Due to the large-scale demolition of empty office space in Bergwijkpark, and the transformation of Holland Park to Campus Zuid, approximately, m² of vacant office space has been withdrawn.therefore the vacancy rate of is among the lowest within the Amsterdam region. This report contains a number of terms to describe the office market in the Amsterdam region. Below we give a brief explanation of definitions to clarify the terms used in this report. Amsterdam region The municipality of Amsterdam and the neighbouring municipalities with a considerable amount of office space including Amstelveen, and Haarlemmermeer. Current stock The current stock represents the total amount of completed office space in buildings mainly used for office purposes, regardless of the type of ownership, including office space that is under construction or in redevelopment, as at the survey date. Net rental take-up The net rental take-up represents office space larger than m² acquired within a given year, excluding prolongation and sale and lease-back transactions. Current supply Current supply is the amount of office space that is available for rent as at the survey date or will become available within six months from the survey date. Vacancy rate The vacancy rate refers to the vacant office space (current supply) expressed as a percentage of the current office stock. Investment volume The investment volume refers to the total sum of investments in a given year. This includes office purchases with the aim of achieving a return, office purchases with the aim of transforming the office for other users, and purchases for own use. Incentive level The incentive level refers to the minimum number and the maximum number of rent-free months on a standard five-years contract. Net rent The net rent refers to the gross rent per m² for a given area, adjusted for the average incentive level for a given area. Investment style The investment style refers to long-term performance expectation and risk exposure. The investment style is based on the vacancy rate for a given area and the net rent level for a given area, derived from the national average. Investment style: core Core markets are defined as primary stable markets with high net rents and low vancacy rates. Investment style: value-add Value-add markets are defined as secondary markets with the opportunity to increase investment value. They tend to have average net rents or average vacancy rates. Investment style: opportunistic Opportunistic markets are defined as secondary markets with a low net rent and a high vacancy rate.

14 Laan der Hesperiden DX Amsterdam + () info@springrealestate.nl