Office City Profile Utrecht Q4 2023
Explore Utrecht's office market in Q3 2023 with JLL's Office City Profile: uncover trends, investments, and hybrid working's influence on premium office space demand.
- Sven Bertens
The Utrecht office market ended the year with a strong half, matching the previous three years in take-up volume. Grade A office spaces were the most sought after, particularly turn-key properties, with significant transactions in the last quarter of 2023. Occupier demand for such spaces is on the rise due to the high costs of new fit-outs, and the scarce supply has led to a slight increase in rent levels. Investment volume for the year was down by 60%, with no significant transactions in Q4, as the market awaits more favorable economic conditions.
Prime net initial yields for office spaces in Utrecht increased to 5.50% at the end of 2023. The investment market is currently sluggish due to high-interest rates, and the development pipeline indicates a limited supply of new office space over the next few years. Most of the upcoming office space is either pre-let or owner-occupied, suggesting supply constraints will likely continue affecting market activity.
