FOREWORD INDEX FOREWORD 3 DEFINITIONS 34 COLOPHON 36 THE DUTCH OCCUPATIONAL MARKET 4 THE DUTCH INVESTMENT MARKET 8

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1 STATE OF AFFAIRS THE DUTCH COMMERCIAL PROPERTY MARKET IN 217

2 INDEX FOREWORD 3 THE DUTCH OCCUPATIONAL MARKET 4 THE DUTCH INVESTMENT MARKET 8 PROVINCE OF GRONINGEN 1 PROVINCE OF FRIESLAND 12 PROVINCE OF DRENTHE 14 PROVINCE OF OVERIJSSEL 16 PROVINCE OF GELDERLAND 18 PROVINCE OF UTRECHT 2 PROVINCE OF FLEVOLAND 22 PROVINCE OF NOORD-HOLLAND 24 PROVINCE OF ZUID-HOLLAND 26 PROVINCE OF ZEELAND 28 PROVINCE OF NOORD-BRABANT 3 PROVINCE OF LIMBURG 32 DEFINITIONS 34 FOREWORD The Dutch commercial property market developed predominantly positively in 217. One of the reasons is that economic growth continued to pick up. Both the occupational and investment market reported strong demand for offices, industrial buildings and stores. Nevertheless, strong differences presented themselves on a local level; some parts of the country were unable to benefit from this positive sentiment. Also, there have been quite a number of challenges. Long-term vacancy levels, for example, climbed once again on different sub-markets. Limited high-quality office space has been on the lurk, particularly in the country s large cities. NVM Business is expecting demand for commercial property to remain strong in 218. Thanks to healthy demand for logistics property among others, prospects are good especially as far as the industrial property market is involved. NVM Business also believes demand for offices will grow, vacancy levels will drop. Demand for retail space will very much depend on the extent to which consumer confidence will develop in the course of this year. On the investment market, demand will remain strong and just like in 217 it will to a high degree be fuelled by widespread availability of capital and low interest rates on the capital market. In this publication, NVM Business discusses the main developments on the Dutch commercial property market. This year, careful attention has been paid not only to the national image, but also to market developments in every single province. On behalf of NVM Business, I do wish you an interesting read. Marcel de Boer NVM Business Chairman COLOPHON 36 3

3 THE DUTCH OCCUPATIONAL MARKET The year 217 has been a good year as far as the Dutch office market is involved. Economic growth ensured healthy demand for office space in pretty much all sectors. On the open market, excluding the owner-occupier construction category, approximately 1.13 million m² were let out or sold last year. But despite this lively image, take-up numbers were slightly below those reported in 216. Just like in previous years, most take-up involved existing buildings; about 92. m² had been taken up in the new-construction category. Major regional differences presented themselves in terms of office take-up, since not all provinces were able to benefit from positive trends. levels, for example, dropped in Gelderland and Overijssel. Although last year s rents were generally steady (an average of 12 per m²), they slightly climbed in some parts of the country. This was mainly the case in large cities and also in the Randstad area. Because most of the lease transactions realised involved existing buildings, and since many offices that have been vacant for a long time had been withdrawn from stock either through demolition or redesignation, the amount of office space immediately available in the Netherlands went down from 7.8 million m² in late 216 to 6.7 million m² at year-end 217. In terms of total stock, vacancy levels have dropped from 16% to slightly beyond 14%. Structural vacancy levels also continued to fall. Approximately 955, m² of office space were withdrawn last year. Vacancy levels have dropped most significantly in Randstad. In Randstad s large cities, however, a limited number of modern, appropriately located offices were available. 9,, SUPPLY AND TAKE-UP OF OFFICE SPACE IN THE NETHERLANDS 8,, 7,, 6,, 5,, 4,, 3,, 2,, TAKE-UP OF OFFICE SPACE BY PROVINCE 2% 2% 1% 1% 9% 3% Groningen 4% Friesland 6% 1% Drenthe Overijssel Gelderland 15% Flevoland 25% Utrecht Noord-Holland Zuid-Holland Zeeland Noord-Brabant 31% Limburg per 15 AVERAGE OFFICE SPACE RENT

4 3,, SUPPLY AND TAKE UP OF RETAIL SPACE IN THE NETHERLANDS 2,5, 2,, 1,5, 5, TAKE-UP OF RETAIL SPACE BY PROVINCE 14% 2% 19% 6% 3% 4% 4% 18% Groningen Friesland Drenthe 9% Overijssel Gelderland Flevoland 13% Utrecht Noord-Holland Zuid-Holland 2% Zeeland 6% Noord-Brabant Limburg Due to high consumer confidence and rising consumer expenditure, the Dutch retail market continued to pick up in 217. Retail supply diminished for the second year in a row but also, more lease and sales transactions were signed compared to last year. At year-end 217, about 2.26 million m² of retail space in total were available for lease or sale; down 164, m² or 6.7% compared to late 216. The number of retail properties on offer dropped from approximately 7,2 down to about 6,75. Retail take-up amounted to approximately 88, m², a 2% decrease compared to 216, but then again this was a record year, welcoming a new shopkeeper for many of V&D s former premises. levels have dropped indeed, yet the number of transactions has been on the rise, up 5% compared to 216 (total: 3,72). Despite major local differences, last year retail vacancy levels dropped in most provinces. Reasons include redesignation and demolition, pushing down retail stock in most provinces. A general trend on the retail market, however, has been a yet bigger difference between attractive and less appealing shopping cities. Due to excessive retail space, regional shopping centres in particular continued to struggle. Even though generally speaking, supply also slightly dropped in these cities, long-term vacancy levels climbed in most of them. Although the market seems to recover, also in smaller cities, finding lessees remains something of a challenge. Last year average retail space rents slightly climbed for the first time since 28. Also the difference between asking prices and transaction prices has been less substantial. The Dutch industrial market developed in a positive sense in 217. levels continued to drop significantly since 216. Industrial space supply diminished by 11%, to approximately 12.4 million m². Positive developments also presented themselves on the demand side, with take-up climbing by 7% compared to 216. Last year nearly 6.5 million m² of industrial space in total were taken into use, thanks to intensifying demand for logistics property. Due to persistent growth within the e-commerce sector, a record number of logistics property had been taken up, letting out or selling nearly 2 million m² in total. New construction complexes in the making or those yet to be built was also popular in 217. Due to strong demand for large-scale logistics property, increasingly more speculative constructions were designed and carried out in 217, without any pre-lets being guaranteed. Low interest rates have pushed down development expenses, turning distribution centres into an interesting investment. Average industrial property rents continued to climb last year. Incentives dropped in most regions. Until recently, rent-free periods of at least six months were offered; only three months in 217. Sometimes incentives had already been included in (re)building costs. For instance, a contribution to furnishing expenses was provided. According to expectations, industrial property take-up levels will continue to climb in 218, bearing in mind persistent demand for large-scale logistics property. Also the persistently low interest rates and growing consumer confidence will help push up the number of sales transactions. This trend did not present itself yet across the entire country in 217. SUPPLY AND TAKE UP OF INDUSTRIAL SPACE IN THE NETHERLANDS 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, TAKE-UP OF INDUSTRIAL SPACE BY PROVINCE 2% 2% 12% 3% Groningen 8% Friesland Drenthe Overijssel 13% Gelderland 23% Flevoland Utrecht 2% Noord-Holland 9% Zuid-Holland Zeeland 1% Noord-Brabant 14% 11% Limburg AVERAGE RETAIL SPACE RENT AVERAGE INDUSTRIAL SPACE RENT per 19 per

5 THE DUTCH x 1 million 1, COMMERCIAL PROPERTY INVESTMENTS COMMERCIAL PROPERTY INVESTMENTS BY FOREIGN INVESTORS 8, 11% INVESTMENT MARKET 6, 8% 3% United States United Kingdom 4, 12% Germany France Belgium Spirits were high on the Dutch investment market in 217, evidenced by e.g. investors strong demand for commercial property. In fact, demand intensified across the market sectors, fuelled by the widespread availability of funds and low interest rates on the capital market in most cases. Strong demand for offices has been an interesting development, with investors spending approximately 5.4 billion in total on offices in 217, an increase of almost 4% compared to the preceding year. One interesting detail has been investors growing interest in the latter categories, investing approximately 47 million last year. In a quantitative sense, demand for retail property was to a great extent dominated by foreign investors, although Dutch investors were active as well, representing a total investment volume of approximately 83 million. To the extent known, prices did not significantly drop nor rise in 217. Initial yields continued to drop slightly only on some of the main shopping streets. Initial yields paid for first-class stores have been anywhere between 3.75% and 5.25%. 2, Foreign investors Dutch investors OFFICE INVESTMENTS x 1 million 6, % x 1 million 2,5 2% RETAIL PROPERTY INVESTMENTS Others Traditionally, foreign investors presented the key group, representing total investment volumes slightly beyond 4 billion. US and German funds were the most active ones. Interestingly, Dutch investors were clearly also more interested in the office market. Property funds in particular have thrived indeed. Most of last year s acquisitions involved buildings located in the Randstad area. And just like in 216, (foreign) office investors were particularly interested in (first-class) locations in the Netherlands four large cities, with the city of Amsterdam claiming a key role. Due to strong demand for offices and limited availability of prime property, initial yields continued to drop in 217 (4% - 5.5% for first-class buildings on the best locations). The retail investment market too thrived in 217, as investors were spending approximately 2 billion on stores, up 2% compared to 216. Retail investment property involved dedicated shopping centres, solitary shops and large-scale (peripheral) retail outlets. Last year investors were interested not only in offices and retail but also in industrial buildings. Investors demand for production and storage space has been remarkably strong, investing approximately 1.8 billion in this section of the commercial property market, nearly 3% more compared to 216. At least half of the investment volumes involved logistics property, and foreign investors in most cases. Generally speaking, Noord-Brabant and Limburg have been the favourite provinces to investors seeking distribution centres, also due to major lease and new construction activities taking place in those provinces. Nevertheless, Zuid-Holland and Utrecht have also been quite popular. Due to serious demand for logistics property, initial yields continued to drop last year, charging slightly beyond 5% for (truly) first-class properties on good locations. Due to these relatively low initial yields, some of the investors have embraced the speculative development of distribution centres. 5, 4, 3, 2, 1, The Netherlands other Randstad INDUSTRIAL PROPERTY INVESTMENTS x 1 million 2, 1, , 1,5 1, The Netherlands other Randstad AVERAGE GROSS INITIAL YIELDS FOR FIRST-CLASS PROPERTY AT THE BEST LOCATIONS % , The Netherlands other Randstad Distribution centres Offices Retail property 8 9

6 GRONINGEN 16, 14, Groningen 12, 1, Delfzijl 8, 6, Leek 4, 2, Menterwolde , 1, 15, 2, In 217, take-up levels climbed on the province of Groningen s office market. Approximately 2, m² metres found new users on the so-called open market. Of all the cities in this region, the city of Groningen reported the most lease activities; which means hardly any changes occurred compared to previous years. The majority of demand involved small-scale office users requiring 2 up to 1, m², a size category representing about 6% of total take-up. One of the bigger lease transactions signed in the city of Groningen involved PostNL who decided to rent a 2,5 m² building on the Kranenburg site, where more transactions have actually taken place. Lessees were also very much interested in Corpus den Hoorn-Zuid. Generally speaking, demand for office space was dominated by locations on the city outskirts. Total supply in this province slightly dropped last year. In the city of Groningen, however, the situation remained unchanged across 217, and so 13% of stock was still vacant towards the end of the year. Offices were also widely available at the Martini Trade Park and Europapark. Hardly any properties were available in the railway station area. The retail market in the province of Groningen hardly moved in 217; demand was clearly poorer compared to last year. The amount of retail space available remained quite steady in most cities. The city of Groningen itself, however, was slightly dynamic, reporting a modest drop in supply levels. Fashion chain Zara, for example, took up a retail space covering approximately 4, m² in Bijenkorf s former premises on Herestraat; Nike took up approximately 1,2 m² in the Westerhaven shopping area and restaurant chain Happy Italy signed a lease contract involving approximately 8 m² of retail space on Oosterstraat. And yet, fewer transactions have taken place in the city of Groningen compared to 216. Also the news came that Topshelf will be closing its doors on Grote Markt, pushing up supply levels significantly in Groningens city centre. One of the problems on the retail market in this province, safe for the city of Groningen, remains the high and growing structural vacancy. Many regional shopping centres have too much space available. The municipalities are investing best efforts to find proper solutions. In Winschoten and Delfzijl, for example, steps are being made to withdraw excessive retail space from the market through demolition or redesignation. In Veendam too, suffering from long-term vacancy, the problem is actively being dealt with. Last year average rents paid in the city of Groningen were slightly higher than in 216. Due to excessive supply, rents were still exceptionally low in the rest of the province. Things were no different in 217. The amount of industrial space available for rent or sale in the province of Groningen dropped in 217. At the same time, more industrial space was sold and let out compared to 216. About 125, m² of industrial space in total was taken up in 217. The biggest transaction took place in the municipality of Groningen, letting out a 3, m² industrial building yet to be revitalised to Delmo, supplier of food sector machinery and accessories. The production sector, relatively strongly represented in Groningen, claimed the most large-scale industrial properties. The sales-lease transaction ratio in Groningen has always been unlike that in Randstad; relatively many sales transactions are taking place in Groningen. Due to persistently low interest rates, the number of sales transactions continued to climb in the previous year. About 5% of industrial space transactions involved sales, versus 35% nationally. Average lease and sales transaction periods were shorter in 217, also due to intensifying demand for industrial properties. In 217, average rents and purchase prices remained steady in the province of Groningen. Average rents amounted to 48 per square metre per year. 12, 1, 8, 6, 4, 2, , 3, 25, 2, 15, 1, 5, Groningen Stadskanaal Hoogezand-Sappemeer Haren Groningen Stadskanaal Leek Hoogezand-Sappemeer 5, 1, 15, 2, 25, , 2, 3, 4, 5, 6, 7, 8,

7 FRIESLAND 16, 14, Leeuwarden 12, 1, Smallingerland 8, 6, Heerenveen 4, 2, Súdwest-Fryslân , 4, 6, 8, 1, 12, In 217, demand for office space developed reasonably well in the province of Friesland; slightly less space had been let out and sold on the open market compared to 216. As a result, take-up levels were below those common in this province. Some of the places suffered as a result, particularly the city of Leeuwarden who had to face disappointing numbers, as take-up had stopped at 5,7 m². In fact, the only major transaction taking place in Leeuwarden involved approximately 3, m² being let out to energy company Nuon. Leeuwarden was not the only city experiencing insufficient demand. Heerenveen too reported poorer demand for offices. The only positive exception in this region has been Drachten, reporting slightly more take-up due to transactions with e.g. AchilleonZorg. Fortunately, total supply did not climb any further last year; in fact it has dropped significantly. One of the reasons is that thousands of square metres have been withdrawn from stock to serve a different purpose. This phenomenon presented itself particularly in Leeuwarden, taking several office buildings (including those belonging to Aegon) off stock. Consequently, supply went down to 13.5% in this city. Vacancy levels also dropped in Heerenveen, due to redesignation. Friesland s retail space take-up levels climbed modestly in 217. This was true not only in terms of transactions taking place, but also as far as space sold and let out is involved. Increased market dynamics, however, mainly involved medium-size cities (Drachten, Sneek, Heerenveen), letting out more space last year. In Leeuwarden, the number of transactions clearly dropped compared to 216. The market situation in small villages and towns remained very difficult, struggling with long-term vacancy and poor demand. The only option for many vacant retail properties in many cases is to change the designated use (e.g. residential). The number of retail properties available for sale and rent in Friesland dropped significantly in 217. By late-217, approximately 275 stores were available for rent or sale in this province, versus 33 in late 216. Presented in square metres, supply levels hardly changed. One of the reasons has been the availability of two large-scale retail properties in Drachten and Heerenveen respectively. In late 217, approximately 12, m² of retail space were available for rent or sale in Friesland. Rents hardly changed. Average transaction prices have modestly climbed in slightly bigger places compared to last year. One of the reasons is that the difference between the asking price and the transaction price realised has been much less substantial than in 216. Average transaction prices realised have fallen in smaller places. In 217, the industrial property market continued to pick up in Friesland. Industrial space supply levels dropped; the number of lease and sales transactions climbed. Nearly 17, m² of total industrial space was taken up last year. A peak period presented itself mainly shortly after the summer. Most of the industrial space was taken up in the municipality of Smallingerland. Heerenveen too reported healthy demand in 217. Due to low interest rates sector-wide a growing need for property for sale has been identified, judging by rising numbers of sales transactions. Market growth also allowed properties to be let out more rapidly. Average square metre rents slightly climbed in Friesland, due to intensifying demand for reasonably young property in general and for high-quality property in particular. There is a scarcity in this segment, creating the opportunity to charge higher rents. This positive trend is expected to persist in 218. levels will continue to drop; take-up numbers will rise. Due to increasing scarcity of existing buildings, transaction prices are expected to continue to climb. Also, more industrial buildings are expected to come about. 16, 14, 12, 1, 8, 6, 4, 2, , 4, 3, 2, 1, Leeuwarden Súdwest-Fryslân Heerenveen Smallingerland De Friese Meren Achtkarspelen Harlingen Tytsjerksteradiel 3, 6, 9, 12, 15, Smallingerland Leeuwarden Súdwest-Fryslân Heerenveen De Friese Meren , 1, 15, 2, 25, 3, 35, 4,

8 DRENTHE 12, 1, Assen 8, Hoogeveen 6, 4, Emmen 2, Meppel The province of Drenthe s office market was in high spirits, reporting many lease transactions were signed in 217. Total sales volumes amounted to approximately 1, m². Geographically, and just like in previous years, demand was strongest in Assen, reporting increased take-up after disappointing numbers in 216. In addition, the internet company known as Catawiki was clearly present, renting over 2, m² of office space in total. The Dutch ICT Implementation Service (in Dutch: Dienst ICT Uitvoering) of the Ministry of Economic Affairs and Climate also allowed demand to intensify. Assen, however, was by no means the only city managing to benefit from healthy demand for office space last year. An interesting climb, for example, was reported by Hoogeveen where office space take-up was to a great extent determined by lease transactions signed with Centric - this software company had decided to focus its activities right here in Hoogeveen and insurance company Unigarant. But despite healthy office space take-up within the existing stock, office space supply levels in the province of Drenthe remained pretty much the same as in the year before. levels did fall significantly in both Emmen and Hoogeveen, however the amount of space available climbed in Assen, and so nearly 19% of stock was available for rent in the province s capital. Meppel was the only place reporting supply levels hardly changed last year. Drenthe s retail market has been remarkably steady for years. In 217, both the number of transactions and total take-up once again developed in line with previous years. Interestingly, retail supply in this province dropped slightly in 217, with the vacancy percentage amounting to about 8%, which is beyond Dutch average. Most vacant properties were to be found in Assen, but also in Meppel and Emmen relatively many premises were available. The amount of space unoccupied dropped mainly in Assen, especially because several large-scale retail trade locations outside the city centre have welcomed new users. The number of retail properties for rent or sale on the other hand remained unchanged in Assen with relatively much vacancy, even on A1 locations. Due to poor demand, many temporary lease transactions were realised in 217. One of the positive developments has been the fact that a number of retail properties were purchased by investors to (partly) convert them to small city apartments. As a result, the number of people and livelihood in the city centre will increase, which should have positive impact on the main shopping area. Last year the question remained as to whether the ambiguous factory outlet OutleTT Assen would come about. Bearing in mind high vacancy levels and competition with Assen s city centre, plans seem unrealistic. Despite fiercer competition, prices remained quite steady in Drenthe, judging by increasingly smaller differences between the asking price and transaction price. The industrial property market in the province of Drenthe has had a good year. The amount of transactions climbed compared to 216, mainly because more lease transactions have been signed. In geographical sense, take-up has been most substantial in Meppel. New properties were realised in Drenthe, including those on the Meppel Noord II industrial site, welcoming a 31, m² sustainable distribution centre dedicated to FrieslandCampina. In addition, Scania announced it will extensively expand its logistics centre in Meppel. Average industrial site transaction prices recovered and have been consistent so far; rents outside industrial sites are still below levels reported prior to the property market crisis. Last year hardly any incentives were required in this region, with demand and supply being in balance. These positive developments are expected to continue in 218, given the number and size of transactions signed early this year. The slowly diminishing supply of industrial buildings might present a problem though, failing to meet demand in the long term. Municipalities have been joining hands at a regional level to serve companies effectively. Plots are being issued to build new industrial space , 14, 12, 1, 8, 6, 4, 2, , 4, 35, 3, 25, 2, 15, 1, 5, Emmen Assen Noordenveld Hoogeveen Meppel 1, 2, 3, 4, 5, Coevorden 3, 6, 9, 12, 15, Meppel Emmen Hoogeveen Assen Coevorden , 2, 3, 4, 5,

9 OVERIJSSEL 6, Enschede 5, Zwolle 4, Hengelo 3, Almelo 2, Borne 1, Oldenzaal Deventer 5, 1, 15, 2, 25, 3, The office market in the province of Overijssel reported less take-up had taken place last year compared to 216. Approximately 5, m² were let out or sold in total in 217. levels have dropped mainly due to poorer demand for offices in Almelo and also in Zwolle. Other places in this province succeeded in maintaining the same levels, as more properties have been let out and sold on the open market than in 216. One interesting detail is how the city of Enschede has managed to keep office space rentals steady. Even though several major transactions e.g. letting out 2, m² to Cendris Customer Contact have made a huge difference, the image was to a great extent dominated by small-scale office users requiring 2 up to 1, m². In Enschede, lessees were once again mainly interested in office buildings located at the Business and Science Park. In Zwolle too, focus has been on small-scale surface areas, mainly in the area known as Hanzeland. Another interesting fact is that office space supply has dropped for the second year in a row in the province of Overijssel. It paid off particularly for the city of Zwolle. Here, supply has dropped not only because of lease transactions involving existing buildings, but also because of the decision to grant some of the office buildings a different purpose. A similar development occurred in Deventer as well. The amount of stores available for rent or sale dropped in most of Overijssel s villages and cities in 217. The number of retail properties available for rent or sale went down from 66 to 59 within a year. The number of square metres offered has gone down as well, particularly due to poorer supply in Enschede and Almelo. In Enschede, supply diminished by almost one-third after letting out approximately 5,5 m² to Decathlon at the Koningsplein shopping centre. In Almelo, supply levels dropped by half, mainly by letting out retail space on Woonboulevard Almelo (Almelo residential boulevard). Vacancy numbers also went down in Zwolle. In addition, the shopping city has become even more interesting after welcoming retail chains such as Primark, Hudson s Bay and Zara. Overijssel s total retail supply amounted to approximately 2, m² in 217, a drop of more than 6% compared to last year. The amount of space sold or let out has been slightly smaller compared to 216. The number of retail transactions remained quite steady. Interestingly, in the large cities average rents realised have been at a higher level in the province of Overijssel. However the opposite was true in smaller cities, charging lower rents compared to 216. Generally speaking, 217 was a positive year as far as Overijssel s industrial market is involved. Total industrial space supply dropped by 12% to 1 million m². Demand for industrial buildings intensified. Although total supply dropped, yet structural supply business premises which have been available for rent or sale for more than three years did climb. This mainly involves old premises that are no longer up to contemporary quality standards. In terms of demand for industrial space, take-up has been most substantial in the municipality of Enschede, reporting approximately 1, m² of industrial space have been let out and sold. An interesting role was claimed by Raalte, where Jumbo supermarkets took up Schuitema s former 2, m² distribution centre. In Zwolle, the transaction with Euroma (offering spicebased solutions) for building 26. m² on the Hessenpoort industrial site has been an interesting development. The number of sales transactions on the industrial property market climbed due to low interest rates and entrepreneurs growing confidence. This trend was clearly visible in Overijssel, reporting sales transactions climbed from 31% in 216 to 42% in 217. Average industrial space purchase prices went up in 217, yet average rents remained pretty much the same ( 45 per square metre). Due to intensifying demand, average transaction periods were shorter in the previous year. 3, 25, 2, 15, 1, 5, ,6, 1,4, 1,2, 8, 6, 4, 2, Enschede Zwolle Deventer Hengelo Almelo Kampen Oldenzaal Hof van Twente 5, 1, 15, 2, 25, 3, Enschede Zwolle Hengelo Almelo Oldenzaal , 4, 6, 8, 1, 12,

10 GELDERLAND 8, 7, Arnhem 6, Nijmegen 5, Apeldoorn 4, 3, Harderwijk 2, Zaltbommel Last year the province of Gelderland s office market had to settle for poorer demand, pushing down transaction volumes on the open market. levels had dropped by 3% compared to 216, mainly because less space had been let out in the city of Apeldoorn. Office take-up also slightly dropped in the city of Arnhem. In fact the only city in this province managing to escape disappointing numbers has been the city of Nijmegen. Demand for office space intensified, which also involved higher take-up mainly thanks to transactions signed with Bovemij and Alfa Laval. When it comes to Arnhem, it is interesting to establish that fewer transactions have taken place compared to 216, particularly due to poorer demand for slightly bigger surface areas. Focus has been on small transactions, especially in the 2-8 m² size category. One of the positive developments on the office market in this province has been the lower supply levels reported in 217. It paid off, especially as far as the city of Arnhem is involved, also because much office space has been withdrawn from stock. In Arnhem, this has led to a vacancy percentage of nearly 19.5%, versus 23.5% a year before. Office supply levels hardly changed in the city of Nijmegen, climbing only modestly in Apeldoorn and also in Ede. Even though the retail market thrived in Gelderland s big cities like Arnhem and Nijmegen, city centres in small places like Renkum, Rheden and Westervoort continued to struggle. As national retail chains pulled out, vacancy persisted with hardly any retail function being possible. Embracing alternatives (e.g. care, desk services, living) is necessary to keep these city centres alive and kicking. Nevertheless, Elst did well last year, also thanks to free parking facilities in the city centre and new development districts in the area. Retail market developed most substantially in the city of Arnhem, reporting many more transactions have taken place compared to 216; both supply and vacancy levels have dropped significantly. Also allowing the Sint-Jansbeek stream to run through the city centre once again has made a huge difference. Nijmegen s retail market too has done a good job, although substantially fewer transactions had been signed compared to the preceding year. A major disappointment for both cities has been the closure of Topshelf s stores in V&D s former premises. In Nijmegen, they soon welcomed new users like Jumbo, La Place and three furniture stores. The total number of transactions signed in Gelderland increased by approximately 1% compared to 216; the amount of space available for rent or sale dropped by 14%. Demand, however, was not the only reason for supply levels to go down. Another reason has been withdrawal from stock through redesignation and demolition. Average rents remained at the same level as in 216. Due to poor demand, rents were still seriously under pressure in smaller places. Industrial space supply levels dropped in 217. And so did structural supply (i.e. business premises available for more than three years). Last year, almost just as much industrial space (approximately 8, m²) had been taken up compared to 216. Demand for industrial space was dominated by Wijchen, also because several large-scale logistics transactions had taken place in 217. Logistics service provider DHL Chain, for example, took up a new building covering over 27, m² at the Bijsterhuizen business park; the Chinese logistics company JUSDA Europe rented 26, m². In Gelderland s Oosterhout, retailer Lidl began constructing one of its largest distribution centres in Europe. In Ede, A.S. Watson the parent company of drugstore Kruidvat has rented the entire distribution centre which previously belonged to Kinzo. The industrial property sector in Arnhem s surroundings has always been dominant in terms of demand for industrial space. In Duiven, pet food producer PPF has taken into use a location covering nearly 2, m². Last year entrepreneurs were also much interested in small-scale industrial space in this province; supply was limited though. Several new-build developments are currently taking place like those in Heteren, to continue to meet demand in the future. In 217, average rents and average purchase prices slowly climbed in the province of Gelderland. 1, , 4, 35, 3, 25, 2, 15, 1, 5, ,5, 2,25, 2,, 1,75, 1,55, 1,25, 75, 5, 25, Doetinchem 5, 1, 15, 2, 25, 3, Arnhem Nijmegen Apeldoorn Doetinchem Harderwijk Zutphen Winterswijk Lochem 5, 1, 15, 2, 25, 3, Wijchen Apeldoorn Overbetuwe Ede Duiven Nijmegen Barneveld Doetinchem 2, 4, 6, 8, 1,

11 UTRECHT 1,2, Utrecht Amersfoort 8, Nieuwegein 6, Woerden 4, In 217, the office market was all about healthy demand in the province of Utrecht, thanks to the cities of Utrecht and Amersfoort in the first place. Transactions volumes remained very steady, mainly because several sizeable lease transactions had taken place in Utrecht itself, involving e.g. VodafoneZiggo, SVB, bol.com, MBO Nederland and Utrecht University. These and some other transactions as well in the city of Utrecht represented half of total take-up realised last year. Many small-scale users were interested as well. A significant share in demand was claimed by the office park known as Papendorp. Amersfoort too was going strong, reporting take-up had exceeded 26, m² in 217. In this city, the tone was set by Vesting Finance, The Office Operators and the Nederlandse Drogisterij Service, renting a considerable amount of space last year. Nieuwegein too experienced healthy demand for offices in 217; in fact sales volumes have skyrocketed in this city. Last year the course of events on the office market in this province was marked by less office supply available for immediate use. Although this paid off for most cities, the amount of space available has diminished most significantly in the city of Utrecht. This drop, which occurred in different places, allowed vacancy numbers to go down by more than 1, m². In addition to substantial take-up of existing offices, again thousands of square metres had been withdrawn from office stock. Vacancy levels also fell in Amersfoort, Nieuwegein and Houten as many offices were being transformed. The retail market was clearly in transition in the province of Utrecht. Retail units abandoned by national chains welcomed new concepts, culinary ones in most cases. This trend which is all about experience and appeal and services presented itself not only in the city of Utrecht, but in fact across the province. Due to economic growth, entrepreneurs are seizing opportunities more often, designing creative retail concepts at the same time, although retail units beyond 2 m² in smaller places continue to present a challenge. But despite all this, retail space take-up levels only reached half the amounts reported in 216. It is because much fewer big retail transactions have taken place in the province of Utrecht. The number of transactions remained steady nevertheless, with shorter transaction periods. And despite lower take-up numbers, the amount of retail space continued to drop in most of the cities in the province of Utrecht. The total number of stores available for rent or sale has dropped from 49 to 46, supply going down from 17, m² to 134, m². As for the city of Utrecht, the majority of space available was to be found outside the main shopping area, centring at the shopping mall called Overvecht and the Amsterdamsestraatweg. The good news as far as the city of Utrecht is involved is that part of the new Hoog Catharijne shopping centre has opened its doors once again and that despite high rents, lessees have been very much interested. Amersfoort s city centre did report some challenging space with no interested users. Zeist too suffered from high vacancy levels in 217, particularly in the city centre. Excessive rents interfered. Rents have been modestly climbing on the city of Utrecht s better locations, however they were averagely the same in the rest of the province. In 217, the industrial property market developed in a positive sense in the province of Utrecht. levels climbed by as much as 6% compared to 216, mainly due to intensifying demand for logistics property. It paid off, particularly for the municipalities of Utrecht and Nieuwegein. In the latter, Fiege has taken up V&D s former distribution centre, planning to turn it into an e-fulfilment centre. In Utrecht, a number of large-scale transactions were signed on the Lage Weide industrial site, including a new-build location of the digital supermarket called Picnic, Fonq. nl and HEMA. In Mijdrecht, Hudson s Bay allowed take-up levels to climb by renting a 55, m² distribution centre. Interestingly, the small-scale segment displayed signs of recovery in 217. Although lease transactions represented 8% of total, sales transactions have also climbed within the small-scale segment, e.g. due to low interest rates and banks more flexible funding policy. Stronger demand allowed transaction prices to climb in both sectors (rent and sale) in 217. It also helped speed up take-up of existing supply. There are not too many properties available for sale in Utrecht; hence any sharply priced supply is claimed rapidly. 2, , 14, 12, 1, 8, 6, 4, 2, ,2, 8, 6, 4, 2, Vianen Veenendaal 2, 4, 6, 8, 1, Utrecht Amersfoort Veenendaal Zeist Soest Woerden 1, 2, 3, 4, 5, 6, Utrecht De Ronde Venen Nieuwegein Amersfoort Woerden Veenendaal Montfoort Stichtse Vecht 5, 1, 15, 2,

12 FLEVOLAND 3, 25, Almere 2, Lelystad 15, 1, Zeewolde 5, Noordoostpolder Although a reasonable amount of lease and sales transactions were signed last year in the province of Flevoland, total demand for office space has been slightly disappointing; roughly speaking take-up did not exceed 11, m². The main reason has been the course of events in Almere, reporting office users were hardly interested. The majority of companies and organisations addressing the open market preferred small surface areas covering 2 to 8 m², a size category claiming approximately 8% of take-up realised. To the extent known, the only sizeable transactions that did take place in the province of Flevoland involved a 1,2 m² office space rented by Unamic in Almere Stad and 1.1 m² rented by the roc in the Muziekwijk district. As for the rest of the province, the letting of office space has been of limited significance. Interestingly, office vacancy levels have dropped for the second year in a row. It is because several large offices have been withdrawn from stock in Almere and also in Lelystad, including a 2, m² building in the city centre of Almere Stad. diminished most significantly in Almere s city centre. But even so, lots of office space was available for rent nevertheless. At year-end 217, just over 3% of office stock was unoccupied, involving spaces in Almere Stad s city centre in the first place. The industrial site known as Gooisekant also reported many offices are still available for rent. In 217, the retail market in the province of Flevoland was particularly marked by the course of events in Almere and Lelystad. As far as other places are involved, it has been pretty much identical to last year, for both the number of transactions and the amount of retail units available for rent or sale hardly changed compared to 216. Interestingly though, significantly less retail space had been let out. This was also the case in Almere and Lelystad. A remarkable difference, however, was that in Almere also fewer transactions were signed compared to 216, yet the amount of supply available has dropped significantly nevertheless. By letting out a large-scale retail outlet of approximately 6, m² in the combined residential and shopping centre called DoeMere in Almere Buiten, and large retail surface areas in the city centre of Almere Stad to e.g. Costes, Action and Pull&Bear, retail space available in Almere has dropped almost by half. Also the number of stores available for rent or sale has gone down, however less substantially so compared to the amount of retail space. In Lelystad, retail space supply slightly climbed in 217, in terms of square metres as well as the amount of stores available for rent or sale. In Almere and Lelystad, last year prices were at a slightly higher level compared to 216, letting out retail units within a shorter period of time. Prices have hardly changed in other places; finding lessees has been more of a challenge. Last year, the industrial market picked up in the province of Flevo land, after slightly diminishing in 216. Both the number of transactions and the amount of space involved have climbed. At year-end 217, the amount of space immediately available was pretty much the same as in the year before. Although total supply has hardly changed in this province, vacancy levels did climb in the city of Lelystad. dropped in Almere and Zeewolde. The majority of lease and sales transactions have taken place in Almere. One of the eye-catching lease transactions size-wise involved bike manufacturer Giant Europe (1, m²). Many lease and sales transactions have taken place indeed, but also several companies have decided to construct new buildings at their own risk. At Lelystad Airport, for example, Inditex (Spanish retailer) has realised a new distribution centre covering no less than 17, m². On the Trekkersveld industrial park in Zeewolde, the construction of a new complex will be initiated in 218 on a site covering over 3 hectares, dedicated to Food Today (poultry business). Last year, lease and sales transaction prices slightly climbed in the province of Flevoland. Transaction periods were longer at the same time. When zooming in on individual municipalities, Almere displays a modest increase in average transaction prices; a slight decrease presented itself in Lelystad and Zeewolde , 7, 6, 5, 4, 3, 2, 1, , 5, 4, 3, 2, 1, Almere Noordoostpolder Lelystad Dronten Zeewolde Almere Zeewolde Lelystad Dronten Noordoostpolder 2, 4, 6, 8, 1, 12, , 1, 15, 2, 25, 3, , 2, 3, 4, 5, 6, 7, 8,

13 NOORD-HOLLAND 2,5, 2,25, Amsterdam 2,, 1,75, Haarlemmermeer 1,5, 1,25, Hilversum In 217, demand for office space was slightly below the level reported a year earlier in the province of Noord-Holland. Sales volumes dropped significantly particularly in the city of Amsterdam, as fewer substantial lease transactions had taken place compared to 216. Based on the amount of space claimed, trends in demand developed in a positive sense nevertheless. A total of approximately 35, m² has been let out or sold on the so-called open market. It means office space take-up has significantly exceeded take-up levels common in this province. Most take-up involved the city of Amsterdam, with lessees being mainly interested in the city centre, Zuidoost and Zuidas (South Axis business district). Last year, Amsterdam was by no means the only city benefiting from strong demand for office space. Several sizeable lease transactions have also taken place in Hoofddorp, involving ASICS Europe, Ingenico epayments and Danone among others. Interestingly, take-up levels have dropped in Alkmaar compared to 216. Any transactions realised here involved small surface areas in most cases. Another interesting detail is that office vacancy rates have dropped for the third year in a row in the province of Noord-Holland. Reasons include strong take-up of existing offices, but also buildings have been withdrawn from stock to serve a different purpose. Although it paid off for many places, decline has been most significant in Amsterdam, reporting vacancy levels have dropped slightly beyond 1% of stock. Nevertheless, the supply situation has not been outright positive; especially the lack of modern, properly situated office space was deemed problematic. Last year, demand for retail property continued to grow in the province of Noord-Holland. levels have tumbled compared to 216, but also the number of lease and sales transactions has skyrocketed. Stronger demand for retail space, however, did not lead to higher take-up levels. On balance, less retail space has been taken up than in 216, the year in which some of V&D s large former premises in particular welcomed new users. Nevertheless, stores were let out or sold more rapidly compared to 216, although this was mainly the case in larger cities. The amount of retail space available in this province dropped by 1% to 245, m² in 217. diminished most significantly in Haarlem, reporting more transactions have been signed. Demand also intensified in Amsterdam, Alkmaar, Purmerend, Heerhugowaard, Hoorn and Bussum. These cities too reported more transactions. At the same time, it is appropriate to mention that despite positive developments, too much retail space is still available in many cities. Despite improved market conditions, some of the shopping streets are unlikely to recover as a result. An interesting lease transaction in the city of Amsterdam involved UNIQLO, who took up a 4,5 m² retail surface area at Rokin. Spaces let out belonged to Forever 21 until recently. Strong demand continued to push up rents charged in the Dutch capital s city centre. Market experts assume rents paid on the main shopping streets have now reached the top. Last year rents remained steady on shopping streets outside the city centre, like Evertsenstraat and Kinkerstraat. In the city centre, most retail transactions involved food, also due to tourism and young inhabitants. With the exception of Amsterdam, where city-centre prices clearly climbed, rents remained at the same level as far as the main shopping streets of regional centres are involved. Rents have been steady outside the main shopping streets. The industrial property market in the province of Noord-Holland displayed a mixed image in 217. levels have dropped significantly and yet, take-up levels were slightly below those reported last year. Especially in the municipalities of Amsterdam, Zaanstad and Aalsmeer, fewer transactions have taken place than in 216. The Schiphol area and the municipality of Heerhugowaard, however, reported stronger take-up last year. levels were able to climb due to large-scale logistics property in the first place. For instance, XPO and Rapid Logistics among others have opted for large premises on Schiphol-Rijk; DHL Parcel realised a new sorting centre on Atlas Park in Amsterdam; online supermarket Picnic has settled in Diemen. Some of the companies seized the opportunity to meet their own accommodation requirements. A new 15. m² distribution centre, for example, has been taken into use by logistics service provider GVT Group of Logistics. Average lease and sales transaction periods were much shorter in 217, confirming growing demand for industrial space. Rents and purchase square metre prices have climbed modestly due to many new-build properties in total take-up. 75, 5, 25, , 3, 25, 2, 15, 1, 5, ,5, 2,25, 2,, 1,75, 1,5, 1,25, 75, 5, 25, Amstelveen Alkmaar Amsterdam Alkmaar Haarlem Beverwijk Hoorn Zaanstad Purmerend 5, 1, 15, 2, 25, 3, 35, Haarlemmermeer 1, 2, 3, 4, 5, Amsterdam Haarlemmermeer Zaanstad Heerhugowaard Alkmaar Haarlem Beverwijk Diemen 5, 1, 15, 2,

14 ZUID-HOLLAND 3,, Den Haag 2,5, Rotterdam 2,, Zoetermeer 1,5, Barendrecht Delft The office market in the province of Zuid-Holland displayed surprisingly strong demand in 217. Nearly 28, m² have been let out or sold on the open market, up 18% compared to the preceding year. levels were able to climb in this province, mainly thanks to the city of The Hague. Supported by several major transactions, including those with the Central Government Real Estate Agency and the Kosovo tribunal, approximately 11, m² have been taken up, nearly twice as much compared to 216. With substantial transactions taking place in the city centre in the first place, this area has claimed a major share of take-up realised in 217. Despite a modest decrease in take-up volume, strong demand for offices presented itself in Rotterdam as well. Limited major lease transactions has been made up for by lots of small and medium-size transactions. And again, lessees were mainly interested in the city centre. In addition, a positive mood dominated the office markets in Leiden and Zoetermeer. Office supply levels in this province dropped in 217, although not everywhere. In fact, supply levels have climbed in Rijswijk and also in Capelle aan den IJssel. In Rijswijk, vacancy levels amounted to nearly 29% as a result, and approximately 33.5% of offices were still available for rent in Capelle aan den IJssel at year-end 217. levels have dropped significantly in the city of Rotterdam, also because several large office buildings have been withdrawn from stock (demolition or redesignation). levels also dropped in the cities of The Hague and Leiden, however less substantially so compared to Rotterdam. In The Hague, limited new construction might be on the lurk, as few large office plans exist that might be developed shortly. Despite a clearly positive market sentiment in the province of Zuid-Holland, the amount of lease and sales transactions remained steady nevertheless. Also the number of retail properties and the amount of retail space available for rent or sale has hardly changed compared to 216. Nevertheless, stores were let out more rapidly in bigger cities. There are some major local differences and the market has been very capricious. continued to diminish in The Hague and Rotterdam in 217, climbing particularly in cities in a slightly lower category. The number of retail properties available for sale or rent has climbed in Leiden, Dordrecht, Vlaardingen, Spijkenisse and Alphen aan den Rijn. has maintained the same level in Delft and Zoeter meer, cities with relatively small vacancy numbers. was also steady in the cities of Schiedam and Gouda, where a relatively high vacancy is a fact. The most interesting detail in terms of take-up has been increased market dynamics in the city of Rotterdam. Not only have there been more transactions, but also much more retail space has been let out also thanks to V&D s former premises on the Koopgoot shopping street. Although take-up had has hardly changed in this area, the number of transactions has substantially climbed in Dordrecht, Delft and Schiedam compared to 216. Fewer transactions have been realised in The Hague, Leiden, Spijkenisse and Gouda, letting out less space compared to a year before. Rents maintained the same level on premium locations, climbing modestly in some cases. Rents were still under pressure in smaller places.. In 217, total industrial space take-up dropped modestly in the province of Zuid-Holland compared to the preceding year (over 9, m² in total). Vacancy levels have dropped significantly compared to 216. As a result, the cities of The Hague and Leiden sometimes failed to meet strong demand for small-scale industrial space. levels have tumbled compared to 216, not only in The Hague and Rotterdam, but also in the Westland area. However, they have climbed in the municipalities of Lansingerland, Dordrecht and Waddinxveen due to several large-scale transactions. The supermarket formula called Boon s Markt, for instance, has taken up 3, m² at the Dordtse Kil III industrial site in Dordrecht, and nearly 2, m² had been let out to HelloFresh in Bleiswijk. Despite poorer demand in the city of Rotterdam compared to 216, last year numerous sizeable transactions were realised nevertheless, especially those involving logistics. In 217, square metre transaction prices climbed modestly almost across the province of Zuid-Holland. But still, rents have climbed less significantly compared to land prices, particularly in urban areas. The incentives agreed upon dropped to a rent-free period of three to four months in , , 35, 3, 25, 2, 15, 1, 5, ,5, 2,25, 2,, 1,75, 1,5, 1,25, 75, 5, 25, Leiden Capelle aan den IJssel 2, 4, 6, 8, 1, 12, Rotterdam Den Haag Leiden Westland Leidschendam-Voorburg Katwijk Dordrecht Lansingerland Waddinxveen Alphen aan den Rijn Gouda 1, 2, 3, 4, 5, 6, Rotterdam Dordrecht Westland Den Haag Ridderkerk 5, 1, 15, 2, 25,