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Rotterdam office market is rising

18 November 2019

The appeal towards Dutch real estate is strong and Rotterdam is becoming increasingly popular, especially for office investors. For a long time people were exclusively focused on Amsterdam, but this has shifted to the other cities in the Randstad as a result of a shortage of high-quality products. Rotterdam is one of the few metropolitan investment markets with offices where, with relatively little investment, value can be added to make a qualitative leap. In 2018, a record amount was invested in the Rotterdam office market.

Recovering user market
According to CBRE, the great interest in Rotterdam is a result of the recovering user market in Rotterdam. More companies are moving to Rotterdam due to a lack of options in Amsterdam and the relatively lower rents. International companies are also increasingly looking at Rotterdam because of its excellent accessibility, the innovative climate and the presence of young talent.

High average return
As a result of the high uptake, the office supply in the city is declining. Because of this, the office market will change from a tenant-friendly market to an owner-friendly market where rental growth is possible. The tightness in the office market is expectedly leading to rising rental levels in prime locations in the coming years, with weaker locations in major cities also benefiting. In short, an attractive real estate investment climate.