Demand for Grade A office space is up, while vacancy rates are decreasing at a startling rate. Since 2016, over 133,000 square metres of stock has been added to the market. Yet vacancy is currently at 5.32%, the lowest it has been in over 15 years.
Today, there are about 122,500 square metres of office space available, with Grade C spaces making up the largest share (77%!). Only 28,000 square metres of Grade A and B spaces are available today, making them easy locations to fill up
Grade C office owners, however, need to combat vacancy. Several options are available to them: reconverting, renovating or leaving the spaces as they are. The latter will result in market-defying rental levels or occupants with no alternative on the market.
In the coming years, several developments will come onto the market. A potential 172,000 square metres of office space will be added over the next 5+ years, with over 51% of turnkey projects.
Foreign investors don’t tend to invest in offices outside Brussels, due to the limited availability of assets, weak market rotation or a lack of direct understanding of local dynamics. But when large tickets become available, is it wise for them to consider the possibilities.
Here’s a quick summary of the Antwerp office investment market:
As the market is mostly limited to local capital, pressure on yields is quite low. Antwerp remains Belgium’s most expensive regional market, and with good reason. It offers many assets and is the perfect location for any business looking to profit from a motivated workforce, an outstanding location and the charm of a mesmerizing city in the heart of Europe.
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