How do you choose the right office locations?

On the Dutch office market, the gap between future-proof prime locations and less desirable areas is widening. Previously, we showed that this development not only presents challenges but also offers opportunities for strategic asset allocation. But how do you choose the right office locations?

In this article, we take a closer look at the question: what makes an office location a winner? We analyze 223 locations based on four pillars: Economic & demographic fundamentals, Real estate market characteristics, Mobility & accessibility, and Diversity of users.

Key findings:

• The Dutch office market has changed significantly since the vacancy crisis following the Global Financial Crisis (GFC), unlike other international markets. As a result, a select group of future-proof office locations with high demand has emerged.
• Office locations that combine strong municipal fundamentals, healthy real estate market dynamics, excellent public transport accessibility, and a vibrant, mixed-use environment are the winners in a polarizing market.
• These prime locations show lower vacancy rates, higher take-up, and stronger market rent growth, proving themselves as the future-proof segment of the office market.

Curious about the full analysis and insights for strategic asset allocation? Then read the article below.

Want to learn more about the effects of polarization on strategic asset allocation? Read the first article.

The third article will delve deeper into another form of polarization: at the asset level. It explores how and why tenants are increasingly focusing on a select group of office buildings—even within prime locations.