Rise in foreign companies setting up HQs in Amsterdam

More international companies chose to locate their European headquarters in the Amsterdam area last year than in previous years, according to the latest office market report by property adviser Cushman & Wakefield. Some 94 foreign companies, up from 86 in 2006, and 73 in 2005) opened offices in the Amsterdam area in 2007. This growth was lead by Asian countries, notably China and India.

Head offices comprised 14% of all new arrivals in 2007. Marketing and sales remained the most important activity among new arrivals (54%), followed by representative offices (20%). The new companies were especially active in ICT (22%), financial and business services (16%) and the creative industries and new media (14%).

Office stock increased by approximately 6% in 2007 - the highest increase in the last 6 years. Total office stock in Amsterdam is 6,160,000m² and in addition to pre-let schemes there has been a marked increase in speculative developments particularly in The South-Axis of the city (Zuidas).

Despite the increase in stock, overall supply is decreasing. According to the report, the supply of office space in Amsterdam decreased to a total of 973,000 m² in 2007, the lowest level since 2003. Even though there has been a considerable fall in supply in the past year, an imbalance in the market remains. Internationally, Amsterdam is still included amongst the capital cities which have the highest supply rates in Europe.

Although take-up in 2007 was not on the record breaking levels seen in 2006, it was still a good year according to C&W. Take-up decreased by 11% in 2007. However the take-up figure of 422,000 m² was one of the highest figures in the history of the Amsterdam office market and was dominated by small scale transactions.

The city also saw more multi-nationals relocate to Amsterdam from elsewhere in the country. Akzo Nobel, Boston Consulting Group, Endemol and Vodafone all moved to the capital in 2007. The key driver for this, according to the report, is the greater accessibility to clients and availability of qualified staff and is this trend is expected to continue in 2008.

The report also showed that the Amsterdam region is clearly recovering following a number of difficult years. The figures showed a high take up of stock and decrease in supply. This is particularly evident in Schiphol Airport area where office supply is now difficult to find.