'Serious' shortage of modern office space in the Netherlands

The shortage of high-quality, modern office space in the Netherlands is taking on serious proportions, according to the latest annual survey of the commercial property market carried out by publishing and research company PropertyNL and the association of Dutch developers Neprom.

While the amount of new space under construction has increased substantially, from 0.9 million m² in 2006 to 1.4 million m² this year, it is not enough to absorb market demand, according to the report. Vacancy rates in the modern office sector have fallen dramatically, and developers are scrambling to meet the demand for new buildings, according to the report. In Amsterdam, the amount of space under construction has almost tripled to 317,000 m² from 112,000 m² in 2006, while in Rotterdam, new space being built has doubled to 347,000 m².

By contrast, vacancy rates for older offices are increasing, with the amount of unused space in the four biggest cities alone - Amsterdam, Rotterdam, The Hague and Utrecht - reaching almost 900,000 m². Thanks partly to a buoyant economy, the number of redevelopment projects is increasing, albeit slowly, the report notes.