The three most important changes we have seen in the Dutch office investment market are:

1. Larger and / or core deals have become scarce in the market. Since the beginning of the rate hiking cycle (Q3 2022), transactions > 100 mil EUR have decreased by 14% of the total market share. Transactions in the 50-100 mil EUR range have also fallen 10%, while conversely, deals 20-50 mil EUR have increased their share of total office investment volume by 6%. Value add properties in good locations in the 5 main cities (Amsterdam, Rotterdam, The Hague, Utrecht and Eindhoven) as well as the next 5 largest cities have become increasingly interesting for investors. Not all tenants are willing and / or able to rent in prime locations (eg: startups). This means that non-core and / or value add properties remain popular with tenants, and, if these properties have good cashflows, they remain attractive to investors. French SCPI’s in particular have become interested in this part of the market over the previous quarters.