OfficeRank™ Research Major structural surplus in office space 2015 | Structural surplus in office space Space/employee - 2005 (current situation, on current total stock of 54.000.000 m²) (including workplace, meeting, misc spaces) 17.000.000 m² 19 m² 2020 | Structural surplus in office space Space/employee - 2015 (strengthening economy, increase in workforce, current stock) (including workplace, meeting, misc spaces) 22.000.000 m² 15 m² 2025 | Structural surplus in office space Space/employee - prognosis 2020/25 (strong economy, significant increase in workforce, current stock) (including workplace, meeting, misc spaces) 22.000.000 m² 12 m² The office market is under pressure from 3 parallel drivers: - more effective use of space - increasing productivity/virtual work environment - aging workforce These trends combined with the general economic development ensure a growing vacancy rate. Average occupancy in office space (in fully leased space) 55 % - 60 % The required space per employee has been in decline for several decades. Through digitalisation (dropbox instead of archives), micro-computing (tablet or laptop instead of mainframe) and a changing work culture (teamwork in a joint space instead of individual offices) the demand for office space remains in strong decline. Hotdesking provides further pressure, reducing the total space required even more. And finally the aging workforce is expected to stabilise in the near future, creating a very large structural surplus of office space. Workforce development 2010 - 2040 (estimate by national bureau of statistics) - 8% Balance by municipality - percentage | 2015 Overschot en tekort per gemeente in 2015 op basis van huidige beroepsbevolking, uitgedrukt in een percentage van de kantoorvoorraad per gemeente. Shortage: Over 10% 0% to 10% Surplus: 0% to 10% 10% to 20% 20% to 30% 30% to 40% 40% to 50% Over 50% Balance by municipality - percentage | 2020 Overschot en tekort per gemeente in 2020 op basis van huidige beroepsbevolking, uitgedrukt in een percentage van de kantoorvoorraad per gemeente. Shortage: Over 10% 0% to 10% Surplus: 0% to 10% 10% to 20% 20% to 30% 30% to 40% 40% to 50% Over 50% Balance by municipality - total size | 2015 Overschot en tekort per gemeente in 2015 op basis van huidige beroepsbevolking, uitgedrukt in oppervlakte kantoorruimte per gemeente. Shortage: Over 10.000 m² 0 to 10.000 m² Surplus: 0 to 5.000 m² 5.000 to 10.000 m² 10.000 to 20.000 m² 20.000 to 50.000 m² 50.000 to 100.000 m² Over 100.000 m² Balance by municipality - total size | 2020 Overschot en tekort per gemeente in 2020 op basis van huidige beroepsbevolking, uitgedrukt in oppervlakte kantoorruimte per gemeente. Shortage: Over 10.000 m² 0 to 10.000 m² Surplus: 0 to 5.000 m² 5.000 to 10.000 m² 10.000 to 20.000 m² 20.000 to 50.000 m² 50.000 to 100.000 m² Over 100.000 m² Details Hidden vacancy The required office space per municipality provides an indication of the viable part of the stock and inversely an indication of the hidden/future vacancy. The stock total does not include new construction and Estimate for total office jobs (2014, CBS) 2.270.000 demolition or transformation for the upcoming years. In Workplace surplus 2014 the balance for the entire year was a decline in the (based on average of 16 m²/workplace) total stock of roughly 200.000 m². This overview also excludes the long-term suitability of the stock. The spatial impact of these new work environments will not be feasible (technically or financially for every building, which may increase the segment of the stock that has no long-term viability. 1.050.000 Required population in The Nederland (for full use of the current total stock) 24.600.000 (current situation, on current total stock of 54.000.000 m²) Number of municipalities with surplus over 100.000 m² (2015) € 22.000.000.000 40 Estimated market value of surplus - 2020 Province with largest surplus (strengthening economy, increase in workforce, current stock) (measured in %) € 28.000.000.000 Utrecht Estimated market value of surplus - 2025 Province with largest surplus (strong economy, significant increase in workforce, current stock) (measured in m²) € 28.000.000.000 Noord-Holland Estimated market value of surplus - 2015 OfficeRank™ Information and sources CBS, CPB, EIB, OfficeRank™ Assumptions and source data All data including our underlying assumptions and calculations are available upon request. Nederland United Kingdom Nieuwe Plantage 54-55 2611 XK Delft One Royal Exchange EC3V 3LL London +31 (0)70 764 0725 +44 (0)20 3769 0760 [email protected] www.officerank.com
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