1. society
2. work
3. unemployment

The Norwegian
Commercial
Property Market
Spring 2015
The Norwegian
Commercial
Property Market
This market report is intended to provide an
overview of the Norwegian property market.
The report highlights important trends and
gives specific examples of transactions in the
leasing and investment markets, important
new property developments, etc.
This report is intended for general information
and is based upon our own material which
we believe to be reliable or material supplied
to us. Whilst every effort has been made to
ensure its accuracy and completeness, we
cannot offer any guarantee that factual errors
may not have occurred. Akershus Eiendom
takes no responsibility for any damages or loss
incurred owing to the inaccuracy or incorrectness of this report. This report was last edited
on March 3rd 2015.
For further information please contact
Akershus Eiendom AS. Comments, suggestions or questions regarding the contents and
presentation of this report are welcome at
[email protected]
Table of
Contents
06
Main Points
08
Macro Economics
The Norwegian Economy
12
14
18
20
24
The Oslo Office Market
Overview of the Market
Rent Levels
Survey of Relocation Patterns
Vacancy
Development
30
The Investment Market
34
Regional Property Markets
40
International Office Markets
44
The Retail Market
48
The Hotel Market
52
The Logistic Market
56
The Residential Market
59
Definitions
60
Akershus Eiendom
Main Points
8
Main
Points
• After a modest 2014 GDP growth at 2.1 %,
expectations for 2015 have taken a toll
from the oil marked decline and now
stands at 1.6 % as a consensus estimate.
Employment growth has been revised
down and is now expected to be close to
zero for the coming two years.
• Office rents in Oslo have been stable or
rising in 2014, but the outlook for 2015
is stable in the prime and CBD segments
and somewhat declining in the fringe
areas. The major trend has been a low volume of new contracts, although at solid
rent levels.
• The results from our annual survey of
moving patterns across Oslo show similar trends as the average of earlier years:
the West side retains almost all its tenants
when they physically relocate, whilst the
East side loses a significant share to the
CBD. However, almost 40 % of moving CBD tenants moved to fringe areas
during 2014, the second-largest share registered in our 10-year study.
share of international investors, at more
than one-quarter of investments.
•New office development in Oslo is at
above-average volume for 2015, while
the next couple of years have smaller confirmed volumes of new projects.
Construction costs are expected to
edge slightly down due to lower overall
construction.
• Our prime yield estimate is now at 4.5 %.
It is obvious that fringe office buildings
also have experienced reduction in sales
yields, in some instances even more than
the CBD area. Thus, the difference between CBD and fringe yields is stable or
decreasing.
• Oslo office vacancy is at 8 %, versus 7 %
one year ago, due to the slowdown in new
leases. As the employment outlook is stable, and the volume of conversion and
demolition is still high, we do not expect
vacancy to go any higher for the next two
years.
• Stavanger, Bergen and Trondheim all now
see a weaker leasing market compared to
early 2014. For Stavanger especially, this is
due to the reduced activity in the oil and
gas sector; for Bergen and Trondheim.
However, the market has a large volume
of new office buildings for 2015-2016. The
transaction volumes have exceeded expectations for all cities.
• There has been a record year in the property investment market, with close to
NOK 59 billion in volume, plus the IPO
of Entra at an additional NOK 28 billion.
This has exceeded expectations, as has the
• The 2014 retail growth in Norway was
close to 2.7 %, and expectations for future
consumption growth have been reduced
along with the expected GDP growth.
Retail properties was a small share of the
transaction market, at lower volumes than
2011-2013, and there were no real portfolio
deals such as seen in previous years.
• Norwegian hotel guest night volume was
3.4 % higher in 2014 compared to 2013,
while RevPAR increased by 1.1 %. The outlook is more uncertain due to an expected
slowdown in business travel growth, but
the volume of new hotels under construction is not high.
• The logistics leasing market is still very
stable with low vacancy and good demand. The logistics transaction market
was the second best seen ever, with close
to NOK 10 billion in property value,
mostly bought by domestic investors;
most were large units with long leases.
• After several years of solid growth, residential prices are now uncertain; most
expect 2-5 % price growth in a market
where new construction is falling, but
most buyers see lower lending rates and
thus are tempted to pay more. Overall
sales are up after the temporary decline in
late 2013 and early 2014, so construction
is expected to rise somewhat in the short
term.
Macro Economics
10
The
Norwegian
Economy
According to Statistics Norway, the Norwegian economy expanded by 2.2 % in 2014
with a growth in 4Q with 0.9 % up from
0.5 % in 3Q. Estimates for 2015 are 1.6 %
growth of GDP, according to DNB and Statistics Norway.
In the fall of 2014, the consensus forecast
was for a 2015 growth of 2.1 %. Thus the
expectations for growth are significantly reduced. Most economists now expect
a slowdown lasting for two years, but it is
very likely that the general growth in other
industrialized countries is the main driver
for future growth.
Traditional export increased with 2.9 % in
2014. Expected traditional export growth
for 2015 and 2016 is 3.2 %, with an increase
to 3.4 % expected in 2017. The lower NOK
exchange rate has contributed to competiveness and profitability for companies in
all non-oil/gas export sectors.
The 2014 household savings rate was 9.1 %,
slightly up from 2013. The growth in debt
was 6.5 % year over year in October 2014,
0.7 % lower than a year ago. The growth
in debt is still higher than the growth in
disposable income, but the growth slowed
during the past year. In the second quarter
of 2014 the ratio was 210 % at records high.
Residential prices are expected to rise 2.1 %
in 2015.
The investments in the petroleum sector
were even before the sharp fall in oil price
in late 2014 expected to decline in 2015.
The decline in oil investments over the coming three years is now estimated to a drop
of 30 %, with half of the decline occurring
during 2015. The oil investments will be 6 %
of GDP, a 3 %-point drop from 2014. After
the major decline in oil prices, the 2016-18
estimates have been revised the most.
Norwegian unemployment has been mostly unchanged during 2014. The level of
unemployed (AKU) in 2015 and 2016 are
estimated by Statistics Norway to be 3.9 %
and 4.3 %, respectively. Last year it was estimated that 2015 and 2016 would be 3.7 %
and 3.6 %. The total employment is expected to stay flat for the coming two years.
Nominal wages are expected to increase
by 3.1 % in 2015, last year’s increase was
about 3.5 % with a price rise of 2 % the real
wage growth was 1.5 %. The utilization of
the capacity in the mainland economy has
been slightly lower the past year and it has
become easier to find qualified workers, according to Norges Bank.
CPI adjusted for tax changes and excluding
energy products (CPI-ATE) were in January 2.4 % and CPI before adjustments 2.0 %.
Oslo Stock Exchange (OSEBX) has so far in
2015 (mid-February) increased by 6.4 %.
Macro Economics
01
Key Economic Indicators
Gross domestic product
GDP mainland Norway
Consumption in households etc.
General government consumption
Gross fixed investment
Exports
Crude oil and natural gas
Traditional goods
Imports
Traditional goods
11
Level NOKm
2014*
3,151,483
2,529,694
1,229,688
688,455
753,066
1,197,587
539,731
344,041
932,063
547,467
Prices
CPI
CPI-ATE
Housing Prices
Employment
Unemployment rate (% of work force)
Employed persons (percentage change)
Participation rate (level)
Interest rates
10-year Government Bond rate (%) (Feb. 6)
Money market rate (level) (3M NIBOR)
3.5
2,619
6.feb. 2015
1,28
1,66
Annual Change(%)
2012* 2013* 2014F
2,7
0,7
2,2
3,8
2,3
2,6
3,5
2,1
2,1
1,6
1,7
3,1
7,6
6,8
1,3
1,4
-3,0
1,0
0,5
-7,6
-0,8
-0,2
1,0
2,9
3,1
4,3
2,8
2,6
3,2
0,8
2009
-1,6
-1,6
0,0
4,1
-6,8
-4,1
-1,6
-8,0
-10,0
-12,1
2010
0,6
1,8
3,8
2,2
-6,6
0,7
-6,9
3,3
8,3
9,2
2011
1,0
1,9
2,3
1,0
7,4
-0,8
-5,6
-0,1
4,0
4,6
2,1
2,6
1,9
2,5
1,4
8,3
1,2
0,9
8,0
0,8
1,2
6,7
2,1
1,6
4,1
3,2
-0,5
72,8
3,6
-0,5
71,9
3,3
1,5
71,4
3,2
2,1
71,5
3,95
2,5
3,73
2,5
2,51
2,9
2,13
2,2
2015F
1,0
1,4
2,5
-2,8
0,8
-0,8
3,1
1,8
-0,5
2016F
1,6
2,2
2,4
2,3
1,1
1,4
-0,5
3,9
2,0
3,3
2017F
2,1
2,7
2,6
2,0
3,5
1,9
-0,4
4,5
1,5
4,2
2,1
2,5
2,3
2,6
2,8
0,2
2,0
2,0
2,5
1,7
1,7
1,3
3,5
1,2
71,2
3,5
1,1
70,6
3,9
0,2
70,3
4,0
0,2
69,9
3,7
1,1
69,8
3,00
1,8
1,28
1,7
1,3
1,2
1,4
0,5
Source:
Statistics Norway
As of December 2014
Macro Economics
02
Key Interest Rates
2003–2015
12
8%
7%
6%
5%
4%
3%
2%
1%
NIBOR 3 months
SWAP 10 years
10 year Gov. Bond
Norges Bank, Sight deposit rate
Jan 15
Jul 14
Jul 13
Jan 14
Jul 12
Jan 13
2.2%
2.9%
1.1%
1.2%
1.1%
1.6%
1.3%
0.2%
0.2%
-0.5%
-0.4%
0.5%
0.4%
2%
1%
-1.2%
0.3%
0.9%
0.6%
-0.3%
1 600
0.7%
1 800
1.7%
2 000
3%
2.0%
1.9%
2 200
2.7%
2 600
3.3%
2 400
4.1%
Norway
1992–2017E
Change, %
4%
3.5%
Change in Total
Employment
2 800
Jul 11
Source:
DNB Markets
Employees, thousands
0%
1 400
1 200
-1%
1 000
-2%
National employment change %, right axis
Employment change %, SSB forecast 10 year
Total employed Norway, thousands, left axis
Total employed, SSB forecast
Source:
Statistics Norway
2017E
2016E
2015E
2013
2014E
2011
2012
2010
2009
2008
2007
2006
2005
2004
2003
2001
2002
1999
2000
1997
1998
1996
1994
1995
1993
800
1992
03
Jan 12
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jul 07
Jan 08
Jul 06
Jan 07
Jul 05
Jan 06
Jul 04
Jan 05
Jan 04
Jul 03
Jan 03
0%
Macro Economics
04
Main Indices
Oslo and London
13
400
350
Index, 2004 = 100
300
250
200
150
100
50
Jul 14
Jan 15
Jan 14
Jul 13
Jan 13
125
120
115
110
105
100
95
90
85
80
USD/NOK
EUR/NOK
Source:
Norges Bank
Jan 14
Jul 14
Jan 14
Jul 13
Jan 13
Jul 12
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jan 08
Jul 07
Jan 07
Jul 06
75
Jan 06
Index, 2005 = 100
Source:
Yahoo Finance/Oslo Børs
130
Jul 05
Exchange Rates
2005–2015
Jan 05
05
Jul 12
Jul 11
Oslo Stock Exchange (OSEBX)
London Stock Exchange (FTSE 100)
Jan 12
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jan 08
Jul 07
Jul 06
Jan 07
Jan 06
Jul 05
Jan 05
Jul 04
Jan 04
0
The Oslo Office Market
14
Overview
of the
Market
The Oslo office building stock, including
Lysaker/Fornebu, today stands at around
8.4 million m². Of the total volume, roughly
3.3 million m² are situated within the city
centre, from Solli Plass in the west to Bjørvika in the east, marked in the map as seven
areas/circles.
Since 2007, the city centre has seen major
urban redevelopment. Two new neighbourhoods at the waterfront, Tjuvholmen and
Bjørvika, have been developed to become
mixed residential and commercial areas.
Bjørvika still has potential for further large
development projects, and in the longer
term, Filipstad just west of Tjuvholmen will
be available for redevelopment.
Generally, Oslo has a great deal of urban
sprawl, and the built-up area covers a lot of
land compared to its population size. Most
of the office building stock is concentrated
in densely built areas, and this is visible in
the map. Office zones outside the Central
Business District are generally found along
the outer ring road from Lysaker through
Nydalen, Økern and Helsfyr-Bryn to Ryen.
All areas have seen new development over
the last 10 years, and Fornebu and Nydalen
have seen the highest activity.
The area between the CBD and the outer
ring road (in the map, seen as the Inner
City West, North and East) is mostly in
use for residential, education and retail
purposes. The west of Oslo contains highend residential areas with low density. The
north-eastern corner of Oslo is the core
area in all of Norway for logistical purposes, with many distribution centres for retail,
wholesale and third-party logistics companies. Eastern and southern areas mainly
consist of residential areas with varying degrees of density.
The Oslo Office Market
06
15
The Oslo
Office Area
Sinsen
Storo
Kjelsås
Grefsen
Nydalen
Oslo Outer East
Ullevål
Oslo Outer West
Økern
Alna-Ulven
Inner City North
Majorstuen
Skøyen
Inner
City
West
Helsfyr-Bryn
CBD
Inner City East
Ryen
Lysaker
Oslo Outer South
Fornebu
500 000 m²
250 000 m²
50 000 m²
Source:
Akershus Eiendom
The Oslo Office Market
16
Rent
Levels
status
The Oslo rental market has experienced
an uneventful 2014 measured by volume,
with fewer lease contracts and smaller tenants compared to previous years. The rents,
however, have either stayed put or grown
somewhat during 2014. The slowdown in
new leases seems to be disconnected from
most tenants’ current need for space. In
short, many of the tenants in the pipeline
seem to have extended their current contract for shorter periods in lieu of signing
new space until the economic outlook becomes more stable.
In December, the consensus rent estimates
from Dagens Næringsliv for the second half
of 2014 were released (see figure 09 and 10).
This shows a relatively limited to flat annual development in rents in all segments.
Prime, CBD and Skøyen has seen a growth
between 1-2 %, whereas the remaining areas
have seen limited to no growth over the
past year. Despite the decrease in signed
contracts, rent levels have not been significantly affected.
Since our last report, Skanska has signed a
contract to move into 7,500 m² brand new
offices in Lakkegata 55 in Oslo CBD, a development project it also owns 50 % of along
with Entra. Bouvet is taking up 4,500 m²
at Sørkedalsveien 8 located at Majorstuen
(inner west fringe), and Google is moving
into newly renovated premises owned by
NPRO at Bryggegata 8, Prime CBD.
uncertainty has resulted in a slowdown in
the oil and offshore industry, and employee
cutbacks have already started happening.
Thus, we believe we will see an increase in
subletting in the west fringe areas where the
oil & offshore clusters are located. Several
large tenants have become more careful
with regards to future need for space and
when to move.
TRENDS
As of February, around 325 companies are
actively seeking just over 650,000 m² of office space in Oslo. The ten largest of these
companies are seeking almost 150,000 m²
of office space, equivalent to almost 25 % of
the total active search. Of the top ten, 65 %
are government or municipal agencies with
contracts expiring within the next three
years.
Also, a surplus of available sites and properties in the fringe areas in combination with
falling yields has created some downward
pressure, as lower yields are incentivising
landlords to lower rents in order to fill their
properties or new projects. As a result, we
believe the rental market will reflect the
business sector’s somewhat sober outlook
for 2015.
The forecast for the rest of 2015 is that rent
levels in the fringe areas will experience a
drop of between 2 % and 10 % from today’s
levels, while the CBD rents will remain at
their current levels. The continuing oil price
The Oslo Office Market
07
17
Oslo Office Rents
March 2015
The map shows office rent levels
for high-standard units larger
than 500 m² in different parts of
Oslo, as of February 2015.
Sinsen
Nydalen Storo
Kjelsås
Grefsen
Oslo Outer East
Ullevål
Oslo Outer West
Alna-Ulven
Økern
Inner City North
Majorstuen
Skøyen
Inner
City
West
Helsfyr-Bryn
CBD
Inner City East
Ryen
Lysaker
Oslo Outer South
Fornebu
Rent, NOK/m²:
General high standard / Top standard and new space
3,600 / 4,200
2,800 / 3,350
2,350 / 2,800
1,800 / 2,400
08
Source:
Akershus Eiendom
1,600 / 2,150
1,400 / 1,950
1,000 / 1,650
Oslo Office
Leasing Examples
Property/location
Haakon VII's gate 1
Bryggegata 8
Munkedamsveien 53
Torggata 5
Brugata 19
Fridtjof Nansens plass 4
Rosenkrantz gate 22
Schweigaards gate 16
Lakkegata 55
Verkstedveien 1
Verkstedveien 1
Karenslyst Allé 20
Sørkedalsveien 8
Essendrops gate 3
Fridtjof Nansens vei 17
Gullhaugveien 12
Lysaker torg 15
Smeltedigelen 1
Sandvika Business Center
Grenseveien 92
Owner
Blystad
NPRO
Aberdeen Asset Management
Olav Thon
DNB Livsforsikring ASA
Eiendomsspar
Lene AS
Entra Eiendom
Entra/Skanska
NPRO
NPRO
Sparebank 1 Livsforsikring
Blystad
NRP Finans
Furuholmen Eiendom AS
NPRO
Storebrand
OBOS
Attivo Eiendomsutvikling AS
Entra Eiendom
Tenants
HitecVision
Google
NæringsEiendom
Økonor
Viken Fiber
Golar LNG
AIG
Dinamo
Skanska
Sektor Gruppen
PA Consulting Group
Capgemini
Bouvet ASA
Help Forsikring
Samordna Opptak
Oslo University Hospital
Norwegian Broker
Berendzen
Regional Tax office, Sandvika
Skala
Floor space m²
600
2,500
600
1,200
800
1,200
1,000
1,500
7,500
1,800
1,300
3,500
4,500
3,800
2,400
3,200
2,000
1,000
3,000
1,500
Area
Prime
Prime
Prime
CBD
CBD
CBD
CBD
CBD
CBD
Skøyen
Skøyen
Skøyen
Majorstua
Majorstua
Majorstua
Nydalen
Lysaker
Inner City East
Sandvika
Helsfyr
The Oslo Office Market
09
Year-End Rent Levels
2004–2014
The figure shows rent levels
based on signed contracts; both
new signings and renegotiations
18
Prime
High std CBD
Newer space CBD
Good std CBD
High std Skøyen
High std west fringe
High std east fringe
Older, ineffective space
2004
1,950
1,550
1,700
1,250
2005
2,100
1,700
1,900
1,300
2006
2,700
1,900
2,000
1,400
2007
3,900
2,300
2,600
1 ,900
2008
3,750
2,300
2,600
1,900
2009
2,700
2,200
2,500
1,850
2010
2,850
2,350
2,550
1,900
2011
3,100
2,550
2,650
2,250
1,300
1,100
500
1,400
1,150
600
1,750
1,300
800
2,200
1,550
950
2,200
1,650
950
1,900
1,550
900
1,900
1,650
900
1,900
1,650
800
2012
3,400
2,850
2,850
2,250
2,450
1,900
1,700
800
2013
3,750
2,900
2,900
2,400
2,650
2,100
1,800
900
2014
3,800
2,900
2,900
2,450
2,700
2,100
1,800
900
Sources:
Dagens Næringsliv
Akershus Eiendom
NOK / m2 / year
4 500
Office Rents
1985–2014
4 000
Nominal NOK
3 500
The figure shows rent levels based
on signed contracts, both new
signings and renegotations.
3 000
2 500
2 000
1 500
1 000
500
Prime
High std CBD
Newer space CBD
Good std CBD
Sources:
Dagens Næringsliv
Akershus Eiendom
2013 H2
2014 H2
2011 H2
2012 H2
2010 H2
2009 H2
2007 H2
2008 H2
2006 H2
2005 H2
2003 H2
High std Skøyen
High std west fringe
High std east fringe
Older, ineffective space
2004 H2
2001 H2
2002 H2
1999 H2
2000 H2
1997 H2
1998 H2
1996 H2
1994 H2
1995 H2
1993 H2
1991 H2
1992 H2
1989 H2
1990 H2
1987 H2
1988 H2
1986 H2
0
1985 H2
10
The Oslo Office Market
20
Survey of
Relocation
Patterns
RELOCATION PATTERNS FOR 2014
Akershus Eiendom annually collects and
analyses a representative sample of recently
signed lease contracts to map tenants’ relocation patterns across Oslo.
This year’s sample consists of 65 tenants occupying 163 000 m² (excluding renegotiated
contracts and extensions), to produce the
annual relocation statistics shown in figure
11, seen on the next page. Some of the largest
individual contracts signed in late 2014 are
listed in the recent market activity chapter.
Total volume of signed leases is down
compared to earlier years, and this is, as
mentioned, due to the lack of large lease
contracts and a generally slow leasing market in 2014.
CONCLUSIONS FROM THE 2014 SURVEY
Staying within the same greater area is still
the typical trend for tenants relocating. During 2014 very few decided to move out of
their area, with the share staying for all areas
being 69 % of the total data sample.
As earlier years, tenants located in the west-
ern part of Oslo decided to stay in the same
area as opposed to moving elsewhere. The
net effect for Oslo west is positive, and significantly higher than the other areas.
Tenants who chose to relocate within the
CBD areas have decreased slightly during
2014 compared to earlier years. 62 % of all
relocating tenants in the area decided to
stay, whereas the tenants relocating from
CBD were quite equally divided between
eastern and western parts of Oslo, however
slightly favouring the western locations. The
net effect for the CBD area is mildly negative
for 2014.
Based on historical behaviour, tenants relocating from eastern Oslo tend to favour
western locations over Oslo CBD. This is
mainly due to rent levels. Surprisingly this
year, there is significantly more volume
relocating to the CBD areas compared to
western Oslo. This is driven by two larger
lease contracts taking up almost 65 % of the
total moving volume for the tenants relocating to Oslo CBD.
IMPLICATIONS FROM THE TEN YEAR
RESULTS OF THE SURVEY
Ten-year results of our relocation survey are
shown in the bottom graphs.
Tenants relocating from CBD to eastern
areas seem to stabilize around its five year
average of 20 %. However, the trend from the
initiation of this survey in 2005 is positive.
Western Oslo tenants are still reluctant to
move eastwards, and the area continues to
hold the highest percentage of tenants staying within the same area.
Only 54 % of the eastern Oslo tenants chose
to stay, whereas 36 % chose to relocate to
CBD. This is the highest figure registered
since 2010.
The Oslo Office Market
11
21
Relocation trends
2014
46 100 m²
The map shows the moving patterns
of tenants who signed new contracts for office space during 2014,
as represented by their volumes.
Oslo
4 500 m
Staying
54%
Staying
94%
14 900 m
1600m²
The CBD is limited in the west at
Solli plass and in the east at Bjørvika. The tenants will physically move
between 2014 and 2017.
23 300 m
15 700 m
43 500 m²
Staying
62%
1500 m
Oslo CBD
Oslo West
Oslo East
Oslo West Net effect: 16 500 m
Oslo CBB Net effect: - 10 000 m
Oslo East Net effect: - 6 500 m
100%
Share of office space
90%
From CBD, West and East
80%
All tenants included in the survey:
70%
Have signed a new lease contract,
It is not a condition that the company has physically moved during
the year.
60%
50%
40%
30%
20%
10%
0%
Moving from CBD
Moving to CBD
Moving to West
Moving to East
Moving from West
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Will occupy more than 500 m² of
office space in their new location.
Source:
Akershus Eiendom
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Moving trends
2005-2014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
12
12 100 m
Moving from East
Source:
Akershus Eiendom
The Oslo Office Market
22
Vacancy
status
Oslo office vacancy measured as floor space
available now or within 3 months stands at
8 % as of January 2015, or 655,000 m². This is
up 0.5 % since last quarter, and 1 % up from
one year ago. Vacancy in the CBD areas is
on average 6.0 %, slightly higher than the
average 2014 level of closer to 5.0 %.
More office space was converted into other
purposes during 2014 compared to what
was constructed and completed over the
same period. As can be seen from the graph,
net office supply was thus negative. Seen in
isolation, this should suggest a decrease in
vacancy. However, due to the low volume of
new signed leases the past year, the demand
of space did not keep pace with the new vacancies becoming available during the year.
As employment has increased during 2014,
this is mainly due to tenants' uncertainty
about the future and the resulting reluctance to commit to new lease contracts.
Lysaker, inner city east and Økern are the
areas with the highest vacancy rates, all
above 13.5 %. The CBD areas’ vacancy currently stands at 6 %, whereas prime CBD
is up from 4 % last January to 6.3 % this
year. Despite this increase it is still considered being at a low level, as the demand for
premises in this area is high.
The largest vacant spaces as of January were
Østre Aker vei 90 at Økern with 27,000 m²
vacant and Nydalsveien 28 with 20,000m²
vacant located in Nydalen. As of January, 13
premises larger than 10,000 m² were vacant.
trends
Our Oslo office vacancy forecast (see graph
14) is mainly based on future expected employment, our own surveys and estimates
for new constructions and demand, as well
as macro analysts’ forecasts for economic
activity.
Preliminary figures show that for the period 2016–2018, between 85,000 and 120,000
m² of new office space will enter the market
each year.
Our estimate of office space being converted into other purposes still remains at
65,000 m² every year, which gives a very
modest net supply of office space throughout the next years. A known volume of large
lease contracts expiring during the years
2016-2019, as well as positive forecasts for
long-term employment growth, are drivers
for increased absorption of space over the
coming years. Taking this into account, we
believe future vacancy will decrease slightly
after being stable throughout 2015. Vacancy
for the CBD areas are expected to stay 2-3 %
lower than the market average.
The Oslo Office Market
13
23
Oslo Office Vacancy,
January 2015
Nydalen
Ullevål
This map shows vacancy in the various office areas of Oslo in January
2015. Space counted is available at
the latest by march 31.
Oslo Outer East
Sinsen
Storo
Kjelsås
Grefsen
Alna-Ulven
Oslo Outer West
Økern
Majorstuen
Helsfyr-Bryn
Inner
City
West
Skøyen
Inner City North
Sentrum
Inner City East
Lysaker
Ryen
Oslo Outer South
Fornebu
1 000 000
Source:
Akershus Eiendom
11.0%
Oslo Office Vacancy,
2002-2018E
900 000
300 000
7,5 %
8%
8%
8%
7.0%
6.5%
7.0%
4.5%
500 000
5.0%
600 000
400 000
8.0%
8.0%
7.0%
700 000
4.0%
200 000
100 000
Actual Forecast
Vacancy level by the start of the year
Net new office space added
Change in demand (absorbed space)
Sources:
Akershus Eiendom
Various developers
2018E
2017E
2016E
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
0
2003
The office vacancy will develop relatively flat for the coming years given today’s knowledge of supply and
expectations of future demand..
9.0%
800 000
The columns show how vacancy
changes due to demand. The forecasts of new demand and supply
are based on knowledge about
spesific office developments and
the official estimates for employments growth.
2002
14
13.0%
m² office
space
< 7,5 %
<5%
< 2,5 %
13.0%
< 17,5 %
< 15 %
< 12,5 %
< 10 %
The Oslo Office Market
15
24
Vacancy risk,
2015-2017
The map shows the risk of future
vacancy within each sub-area in
Oslo in the coming two years until
January 2017, based on known
volumes of office space entering
the market during the period,
either through new vacant buildings
or because the tenant has signed
to move out. The analysis does not
take into account the effects of
tenants moving between sub-areas; it is solely a supply-side risk
analysis.
Nydalen
Ullevål
Oslo Outer East
Sinsen
Storo
Kjelsås
Grefsen
Alna-Ulven
Oslo Outer West
Økern
Majorstuen
Skøyen
Inner
City
West
Inner City North
Helsfyr-Bryn
Sentrum
Inner City East
Lysaker
Ryen
Oslo Outer South
Fornebu
High risk
Medium risk
Low risk
Source:
Akershus Eiendom
The Oslo Office Market
26
Development
new office construction
New office developments were completed
in 2014. Only 43,000 m² of new office space
entered the market, compared to 147,000 m²
in 2013. New office space being finalised in
2015 is expected to be 160,000 m² and only
20 % of the new stock is speculative. For
2016 and 2017 the volume of known new
supply is 82,000 m² and 44,000 m² respectively. The new projects’ locations and status
are depicted in figure 16.
There have been few new office buildings
initiated since our last report. Dronning
Eufemias gate 42 and Dronning Eufemias gate 6b are expected to be completed in
2016-2017. Both projects are speculative and
contain about 4,000 m² office space each.
Much of the ongoing development is concentrated to the area around the central
station and the eastern part of the city
centre. The largest project in this area is
Sundt-kvartalet comprising nearly 28,000
m² office premises. It is a collaboration
between Entra Eiendom and Skanska, and
Skanska will move into the new office building upon completion in the end of 2016.
70 % of the building is vacant. The new head
office for Statoil Fuel and retail in Schweigaards gate 16 will soon be completed, and
Entra Eiendom has recently signed a leasing
contract with Dinamo for 1,500 m² of the
vacant space.
office space. The two first construction stages will be completed in 2015 and the third
will be finished in summer 2016.
Since the last report, Norwegian Property
has signed a new leasing contract with Sektor Gruppen for one floor in Verkstedveien
1 at Skøyen. The project will be completed
in September, and half of the floor space is
still vacant. Schage Eiendom will soon start
the demolishing of the existing building in
Drammensveien 145-147 and are planning
to finalize the zoning process and start the
construction of 25,000 m² new office space
in August.
Trends
With a slowdown in the GDP growth,
we do not expect to see much activity for
opening up new areas for development in
the coming couple of years. A number of
large tenants might choose new buildings
during 2015, for completion in 2016-18. As
the price difference between the fringe areas
in general and the CBD is now record high,
the announcements of any new project will
signal which area has an advantage, and
whether the difference will stay or change.
Another large development site in Oslo is
HasleLinje at Økern in the northeast, where
it is possible to build a total of 100,000 m²
Construction of new space at Fornebu,
except for the Fornebuporten project, is
expected to slow down until the new metro
line is ready, which is now expected to happen in 2021-22.
Construction costs
As can be seen in graph 21, the order backlog
for the total construction industry has decreased
by 5 % during the third quarter of 2014. While the
reserve of orders in civil engineering decreased
by 12 % during this period, the reserve of building
orders increased by 1 %. Despite the decrease in
the order backlog of the construction industry, it
is still 2 % higher than in the third quarter of 2013.
The backlog of residential projects has decreased
significantly during the last year, and the activity
is likely to decline somewhat in 2015. The activity within the commercial sector has increased in
the same period.
Akershus Eiendom’s estimated turnkey cost for
new office buildings in Oslo, shown in graph 20,
is currently at NOK 20,000 per m² office space,
which is unchanged from our last report. Our
estimate is changed from a flat development to
a slight decline, about 5 %, in building costs over
the next 12 months.
The Oslo Office Market
16
28
New office buildings
2015-2017
2015: 167,000 m²
2016: 94,000 m²
2017: 43,000 m²
American Embassy
The map shows the location, year of
completion, leasing/vacancy situation and relative size of the ongoing
or in other ways confirmed office
construction projects in Oslo. The
names are either the address, project name, or tenant name where
the project has one major tenant.
Bymiljøetaten
Fr. Nansens vei 16
OCCI
Aller Media
Cowi
Verkstedveien 1
Storgata 14–18
Silurveien 2
DEG 6B
Drammensvn 147
Lysaker Polaris
R.S Platou
Sundtkvartalet
SFR
DEG 42
Diagonale
Fornebuporten
Building B
17
Vacant
Occupied
Building A
New buildings 2015
New buildings 2016
New buildings 2017–2018
Source:
Akershus Eiendom
Available Land Plots
for Office Development
in Oslo
Potential size, floor space m²:
150 000 m²
75 000 m²
25 000 m²
10 000 m²
Available now or within 4 years
Long-term development potential
Source:
Akershus Eiendom
The Oslo Office Market
Developer
Aker
Norwegian Property
OCCI AS
NCC Property Development
Höegh Eiendom
Entra Eiendom
Selvaag
Höegh Eiendom
Reimers family
United States of America
ROM Eiendom
Aker
Entra Eiendom / Skanska
Höegh Eiendom
Olav Thon Gruppen
Oslo S Utvikling
Schage Eiendom
HAV Eiendom / Olav Thon
Watrium
m2
250 000
200 000
150 000
100 000
50 000
Source:
Akershus Eiendom
2018E
2017E
2016E
2015E
2014E
2012
2013
2011
2010
2009
2007
2008
2006
2005
2003
2004
2001
West
East
CBD
Estimate (all areas)
2002
2000
0
1998
Completed new office space
in Oslo (including Fornebu).
Only certain new buildings
is included in the 2015-2018
figures.
Area
Completion
Fornebu
2015
Skøyen
2015
Outer city west
2015
Lysaker
2015
Økern
2015
CBD East
2015
Outer city west
2015
Økern
2015
Majorstuen
2015
Outer city west
2015
Prime
2015
Fornebu
2016
CBD North-East
2016
Økern
2016
CBD North-East
2016
CBD East
2016
Skøyen
2017
CBD East
2017
CBD East
2017
300 000
1999
New office
space
1997
19
Property/building
Floor space m²
Fornebuporten - building B
30,000
Verkstedveien 1
26,500
Ullernchausseen 56
20,000
Lysaker Polaris
18,000
Hasle Linje (City park/environment office)
16,000
Schweigaards gate 16 (Statoil Fuel & Retail)
13,000
Silurveien 2
9,500
Hasle Linje (Aller Media)
9,400
Fridtjof Nansens vei 16
8,100
American Embassy Huseby
5,000
Munkedamsveien 62
5,000
Fornebuporten - building A
29,500
Sundtkvartalet
27,600
Hasle Linje (Cowi)
12,500
Storgata 14-18
8,500
Dronning Eufemias gate 42
4,200
Drammensveien 145-147
25,000
Diagonale
15,200
Dronning Eufemias gate 6b
4,000
1996
New major
Oslo office
projects,
2015-2017
1995
18
29
The Oslo Office Market
30
NOK / m2
20
Estimated
Turnkey
Cost
24 000
22 000
20 000
Akershus Eiendom’s official
estimate of turnkey cost is based
upon information from recent
initiated projects and input from
valuations.
18 000
16 000
14 000
12 000
10 000
Estimated future construction cost
Observed construction cost
Source:
Akershus Eiendom
Value index for backlog
175
150
125
100
75
50
National index, all new and existing buildings incl rehab projects
New residential buildings
Other new buildings (mainly commercial)
Source:
Statistics Norway
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
25
08 Q1
The graph shows the order back
log for new buildings. The graph
has been deflated by the total
production index to remove effects
of changes in building costs (basic
component costs) and changes in
margins to contractors
200
07 Q1
Quarterly index
225
06 Q1
Nationwide
2004–2014
250
05 Q1
Order Backlog
New Buildings
275
04 Q1
21
Jan 16
Jul 15
Jan 15
Jul 14
Jan 14
jul 13
jan 13
Jul 12
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jul 07
Jan 08
Jan 07
Jul 06
Jul 05
Jan 06
Jan 05
8 000
The Investment Market
32
The
Investment
Market
Commercial property transactions totalled
NOK 87 billion in 2014, a record-high volume in Norway and an increase of 133 %
compared to 2013. Previous record was
in 2006 with a volume of NOK 58 billion.
However, the figures include the IPO of
Entra Eiendom which counted for almost
NOK 28 billion in total property value. The
remainder, however, is still a record high
volume at NOK 59 billion.
After a relatively slow start of 2014, Akershus Eiendom observed very high activity
from May/June throughout the rest of the
year. Not since 2006/2007 have we seen
similar activity in the investment market.
The main reason for this is the steep decrease in long term interest rates over the
last year, and the banks’ increased lending
activity. At the beginning of 2014 10Y SWAP
was 3.3 %. In February 2015 it is 1.8 %, a significant decline of 1.5 %-points. At the same
time banks have lowered their margins for
solid players making total funding costs for
investors record-low.
Since our last report we have changed our
Prime yield from 5.00 % to 4.5 % due to the
reduction in both interest rates and margins, supported by transactions observed in
the market.
• City Finansiering has acquired Bolette
Brygge 1 at Tjuvholmen from Union
Eiendomskapital at a record low yield,
4.5 %. Bolette Brygge 1 was built in
2007 and has a total area of 3,969 m2.
•KLP Eiendom bought Schweigaards
gate 21-23 from Rom Eiendom. The
properties are located in CBD east and
have highly reputable tenants in Gjensidige and NSB (Norwegian railway).
The sales price was NOK 1,750 million, corresponding to a yield of 4.75 %.
• Starwood Capital Group, a global private investment firm, has agreed to
purchase DnB NOR Eiendomsinvest
I in Norway. In conjunction with the
transaction, Starwood will also acquire
SveaReal Fastigheter in Sweden. The overall deal is valued at around NOK 11,000
million, which is the single largest property transaction in Scandinavia in 2014.
• Another foreign investor, Meyer Bergman, acquired their first property in
Norway when they bought Grensen 17
in Oslo for NOK 260 million (EUR 30
million) from a venture between Søylen
and Madison International Realty.
• Genesta Nordic Baltic Real Estate has
sold Karl Johans gate 14 and Kirkegata 23-25 in Oslo to a subsidiary of AVA
EiendomsPartner for NOK 782.5 million,
corresponding to a yield of around 5 %.
After having been almost absent for the last
couple of years, several large logistics transactions took place in 2014 – details are given
in the corresponding chapter. Total transaction volume for logistic properties in 2014
ended at more than NOK 10 billion, an increase of 176 % compared to 2013.
The Investment Market
The one segment with decrease in activity
was retail; however, this was after several years when major players acquired key
shopping centres and thus large volumes
changed hands.
A trend we have seen over the last years
in the Norwegian commercial real estate
market is that there are significantly more
buyers than sellers. This trend, of course,
drives the prices upwards. As a consequence
of low interest rates, investors consider the
return in commercial real estate as attractive relative to the risk. Even after the yield
compression we have seen lately.
33
The Investment Market
22
Transaction Volume
of Commercial
Properties
Only deals larger than NOK 50
million are incuded in the graph.
Volume in 2014 ended close to NOK
87.5 billion.
34
90 000
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
Interest Rates and
Prime Transaction
Yields 2003–2015
2015
2014
Source:
Akershus Eiendom
Residential projects
Commercial land plots
Logistics / industrial properties
Hotels
Retail properties
Office buildings
7.50 %
7.00 %
6.50 %
6.00 %
5.50 %
5.00 %
4.50 %
4.00 %
3.50 %
3.00 %
2.50 %
2.00 %
1.50 %
Transaction Yield
10Y SWAP
10Y Gov. Bond
jan 15
jul 14
jul 13
Source:
Akershus Eiendom
jan 14
Jul 12
Jan 13
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jan 08
Jul 07
Jan 07
Jul 06
Jul 05
Jan 06
Jul 04
Jan 05
Jan 04
1.00 %
Jul 03
The curve indicates the 10-year
government bond rate and the
10-year SWAP rate. The triangles
represent time and sales yield
for large Oslo office transactions
since Jan 2003.
Jan 03
23
2013
2012
2011
2010
2009
2008
2007
2005
2006
0
The Investment Market
24
35
Sellers and Buyers
of Commercial
Property 2013–2014
11%
5%
6%
17%
6%
5%
2014
29%
41%
29%
2%
7%
7%
15%
14%
8%
13%
4%
7%
37%
10%
2013
13%
8%
35%
13%
12%
24%
22%
Buyers
Property companies
Listed property funds
Government
Closed-end funds
Insurance/Pension funds
25
Sellers
Property funds
Foreign investors
Private investors
Owner occupier
Remaining
Source:
Akershus Eiendom
Oslo Office
Transactions
Property/location
Sannergata 2
Grenseveien 95
Karl Johans gate 13
Haslevangen 45/47
Økernveien 94
Lysaker Polaris
Karl Johansgt. 14 / Kirkegt. 23-25
Drammensveien 211
Bolette Brygge 1
Schweigaards gate 21-23
Økernveien 11-13
Økernveien 9
Lørenveien 37
Hans Møller Gasmanns vei 9
Lørenveien 68
Lilleaker veien 4A
Haslevangen 15
Christian Kroghs gate 32
Floor
space m²
Price NOK
million
20,000
10,500
1,950
15,500
18,500
26,000
17,300
11,000
4,000
32,000
12,000
12,100
7,000
25,000
11,700
9,000
10,000
11,000
<700
Seller
Buyer
Closed-end fund (Pareto Project Finance)
DNB Næringseiendom
Aberdeen Norge II
Hemfosa
Aberdeen Norge I
Søylen Eiendom
Closed-end fund (Platou Real Estate)
Closed-end fund (Pareto Project Finance)
Storebrand Eiendomsfond Norge KS
AVA Eiendomspartner
Closed-end fund (DTZ)
City Finansiering
KLP Eiendom
Bergen Kommunale Pensjonskasse
Closed-end fund (NRP)
Ragde Eiendom
Bulk Eiendom/Akershus Energi
Oslo Pensjonsforsikring
Mustad Eiendom
Møller Eiendom
Anthon B Nilsen Eiendom/OBOS Forretningsbygg
195
785
782,5
1,750
300
390
158
300
240
200
149
Nordisk Areal 1 AS
NCC Property Development
Genesta Nordic Baltic Real Estate
Egil Stenshagen
Closed-end fund (Union)
ROM Eiendom
Closed-end fund (DTZ)
Closed-end fund (DTZ)
Nortura SA
Anthon B Nilsen Eiendom
Storebrand Eiendomsfond
Lilleakerveien 4 ANS
Marienlyst Eiendom
Aberdeen Property Nordic Fund I SICAV-FIS
Regional Property Markets
36
Regional
Property
Markets
BERGEN
TRONDHEIM
STAVANGER
Total transaction volume in Bergen ended at
approximately NOK 3 billion, which is among
the highest volumes on record in the region.
The high activity is expected to continue in
2015.
Total transaction volume in Trondheim for
2014 ended at about NOK 4 billion, and the
active transaction market is expected to continue in 2015.
2014 was an active year in the transaction
market, and total transaction volume in Stavanger ended close to 5 billion in 2014. The
high activity in the transaction market is expected to continue going forward.
Prime yields are seen in the area 5.75 % - 6.0 %
and up to 7.25 % for good objects.
Vacancy at the end of 2014 was about 8.0 %,
and is expected to increase in 2015 due to a
challenging leasing market with several new
office buildings, large moving processes and
staff reductions, especially within the oil/offshore/engineering segment.
Rent levels for new office buildings with CBD
locations are seen at levels between NOK
2,200 – 2,500 per m², and are expected to be
stable at these levels going forward. Existing
office buildings with good standard are expected to experience a slight decrease. Older
and inefficient office buildings are difficult to
rent out, and might be converted to other purposes than office in the future.
Sublease contracts can affect the rental level in
the short and medium term.
Yield levels are stable, and prime yield is now
between 5.5 % and 6.0 % while “normal” yield
is in the area 7.5 % - 9.9 %.
Office vacancy is today at about 7.1 %, which is
an increase since the last report. The increase
can mainly be explained by new buildings at
Grilstad as well as subletting from Aker Solutions. Vacancy within the retail segment is still
increasing, and even space with good location
can stay vacant over a longer period of time.
Office rent levels in Trondheim are stable at
NOK 1,000 – 2,200 per m².
About 44,800 m² of new office space is expected to enter the market during 2015. As of
today, about 32,500 m² of new office space is
planned in 2016-18.
Rent levels are still stable in the Stavanger
region, but some areas and segments are experiencing some downwards pressure. The
highest rent levels are seen in the Stavanger
CBD area.
Overall, vacancy is still low in this region and
total vacancy is today at 4.3 %. This can mainly be explained by few available spaces within
the retail and combination segments. Vacancy
in office buildings has increased from 7 % to
8 %, which indicates an imbalance between
supply and demand. The vacancy is expected
to increase going forward, especially for office
buildings.
Yield levels for prime objects are unchanged
at 6.5 % to 7.5 %, and are expected to stay at
these levels going forward.
Regional Property Markets
26
Year-End Office Rents
2005–2014
38
Bergen
Trondheim
Stavanger - CBD
Stavanger - Oil
Kristiansand
Tromsø
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
1,1001,2251,4001,550 1,4751,4751,475 1,4751,4751,475
1,2001,3501,6501,6501,6001,6001,650 1,7001,7001,750
1,300
1,500
1,650
1,700
1,600
1,600
1,700
1,900
1,950
2000
1,050
1,200
1,350
1,400
1,300
1,300
1,350
1,450
1,525
1,450
1,2001,350 1,5251,550 1,4251,4001,400 1,3751,4001,400
1,0001,0001,3001,300 1,3001,4501,450 1,500 1,6751,650
Source:
Dagens Næringsliv
NOK/m2/year
Regional Office Rents
1989–2014
2 000
Nominal NOK
1 600
1 800
1 400
1 200
1 000
800
600
400
200
Bergen
Trondheim
Stavanger - CBD
Stavanger - Oil (Forus)
Kristiansand
Tromsø
Source:
Dagens Næringsliv
2014 H2
2012 H1
2013 H2
1201 H1
2010 H1
2009 H1
2007 H1
2008 H1
2006 H1
2005 H1
2004 H1
2002 H1
2003 H1
2001 H1
1999 H1
2000 H1
1997 H1
1998 H1
1996 H1
1995 H1
1994 H1
1993 H1
1992 H1
1991 H1
1989 H1
0
1990 H1
27
Regional Property Markets
39
Office rent, NOK per m2
31
Office Rents
February 2015
2 800
Bergen
2 600
Trondheim
Stavanger
2 400
2 200
The columns show lower and higher
2 000
rents for different areas within the
three cities. Bergen rents are more
1 800
uniform than Stavanger and
Trondheim. 1 600
1 400
1 200
1 000
800
600
400
200
Tananger
12%
10%
8%
6%
4%
2%
Bergen
Trondheim
Stavanger
15 Jan
14 Sept
14 Jan
13 Jan
13 Sept
12 Jan
12 Aug
11 Aug
11 Jan
10 Aug
10 Jan
09 Aug
09 Jan
08 Jan
08 Aug
07 Aug
07 Jan
06 Sept
06 Feb
05 Sept
05 Jan
04 Feb
0%
03 Oct
Regional Office
Vacancy
2003–2015
Forus
Sources:
Eiendomsmegler1 Midt-Norge
Eiendomsmegler1 Rogaland
Kyte Næringsmegling
Best rent levels
Lower rent levels
29
CBD
South
East
Fringe CBD
CBD
Sandsli
Fyllingsdalen
Fringe CBD
CBD
0
Sources:
Eiendomsmegler1 Midt-Norge
Eiendomsmegler1 Rogaland
Kyte Næringsmegling
Regional Property Markets
33
40
Leasing
Property / location
Floor space m²
Rent / m²
3,900
n.a
3,500 Office /
3,000 Production
2,200
1,775
1,750
1,100
610
1,130
2,500
1,450
1,465
Stavanger
Professor Olav Hanssens vei 10
Trondheim
Grilstad Marina
Beddingen 14
Kongens gate 2
Bergen
Jonsvollskvartalet
Kanalveien 105
Sandviksboder 66
31
n.a
n.a
Tenant
Owner
Norwegian Mapping Authority
Entra
Kongsberg Maritime
Grilstad Marina
IF Forsikring
BN Bank
Aberdeen
Sparebank 1 SMN
Sparebanken Vest
Expoline
Swire Seabed
Jonsvoll Utleie AS
Aberdeen
Gjensidigegårde AS
Sales
Proper ty / location
Trondheim
Residencekvartalet
Sluppenveien 14
Haakon VIIs gate 13
Haakon VIIs gate 14
Bergen
Kong Olav V's Plass 4
Olav KyrresgT 41/Vaskerelven 39
Damsgårdsveien 161-171
Torget 1
Stavanger
Nykirkebakken 2
Verksgata 1
Apply HQ, Forus
Tollboden
Aker Solution, Hinna Park
Fluid Controll, Sola
Maersk, Forus
Floor
Price
space m²
NOK million
11,370
25,000
9,780
307
174
84
77
1,690
4,090
16,370
478
92
80
206
46
12,00
10,700
378
240
660
110
1,550
160
120
4,380
66,000
6,900
Buyer
Seller
PS Platou
Heglund Holding
NorInvest
Koteng Bolig
Sparebank 1 Oslo Akershus
Posten Norge
Prora Eiendom
Skifte Eiendom
Thore Arild Økland Invest
Bara
EGD
Aberdeen
Kløver Eiendom
Union
Union
WP Carey
Camar Eiendom
NIAM
DNB syndikat
DNB Syndikat
Schibsted
DNB Næringseiendom
Apply
Entra
Several owners
Stavangerske Investeringsselskap
Base Property
32
New Building / Rehabilitation
Floor space m²
Completion
Trondheim
Sluppenveien 17BC
Verftsgata 2
Bassengbakken 2
Vestre Rosten 69
Trondheim Maritime Senter
Trapphuset
Abels Hus
Developer
Tentant
12,500
15,300
7,000
1,000
n.a
4,500
15,000
2015
2015
2015
2015
2015
2016
2017
Kjeldsberg Eiendom AS
Prora AS
Kjeldsberg Eiendom AS
Hent AS
Trondheim Havn/Koteng
ROM Eiendom
KLP
Statkraft
Adresseavisen
Evry
Hent AS Heimdal Eiendom
Stavanger
Forus Vest
Forus Vest
Buøy
Bjergsted
Project Gullfaks - Hinna Park
Sandes Sentrum
38,500
10,000
7,000
10,000
18,000
4,000
2014
2014
2014
2014
2016
2016
Forus parkering Vest
Base/Håkull
Buøy Invest
Veritas
Various
Proserv
Bergen group
Centrica
Wintershall
Sandnes Sparebank
Bergen
Jonsvollskvartalet
Bergen Stasjon
Nygårdsgaten 112
Kokstadvegen 23
Nestunbrekka Næringspark
Sandsliåsen 50
Kokstadflaten
Haukås
Langarinden (Åsane)
Kronstadparken
C. Sundtsgate (Grieg Gaarden)
Marineholmen
Fantoftvegen 14
Kronstadparken - "Vinkelbygget"
Media City
19,400
14,800
14,000
15,000
10,500
14,900
19,000
4,000
10,000
14,000
5,000
8,000
18,500
13,300
40,000
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
2016
2016
2016
2016/2017
2017
Jonsvollskvartalet AS
ROM Eiendom
Odfjell Eiendom
Ferd
Backer
EGD
Odfjell Drilling
Haukås Handelspark
EGD
Bara
Grieg Property
Marineholmen
Helmers AS
Bara
Entra/OPF
Stavangerske Investeringsselskap
Sparebanken Vest et al
KLP et al
Statens vegvesen et al
Aibel
Various
Choice
Odfjell Drilling
Kverneland
Solberg & Andersen
Grieg et al
DNV GL
Sweco et al
T V2, NRK among others
International Office Markets
42
International
Office
Markets
International Office Markets
During 2014, the vacancy rate in Stockholm
CBD has increased, while it has decreased
or remained unchanged in other Stockholm
sub-markets. Overall, the vacancy rate in
Stockholm has remained unchanged at 9.1 %
during 2014, which is the lowest vacancy
rate recorded since 2001. The total transaction volume in Stockholm during 2014
amounted to SEK 57.1 billion (approx. EUR
6 billion), including 12 cross-border transactions. Prime rents have remained stable in
all sub-markets throughout 2014; however
rents are expected to increase slowly going
forward, due to increased demand for prime
office space. Prime yield has remained unchanged at 4.25 %.
The demand for prime office investments in
Copenhagen has been a lot higher than the
supply during 2014, thus the prime yield has
decreased to 4.75 %, down 25 bps from 2013.
Overall vacancy rates remain high at 10.3 %;
however, the vacancy rate in and around the
CBD have decreased. The demand for office
space is focused on modern and efficient
properties, thus the prime rent has remained
stable the last three years, while rents for less
efficient office space has fallen. The prime
rent currently stands at DKK 1,750 per m².
The investment market experienced an upturn during 2014. This was mostly because
of an increase in demand for office as an
investment class due to reasonable return
compared to assets such as stocks and bonds.
Helsinki experienced a rental decline during
the second half of 2014, as it did in the first
half. The overall vacancy rate declined by
0.1 %, after having increased over the last two
years. However, this was mostly due to conversion of modern office space for residential
use. The Helsinki CBD has actually seen an
increase in vacancy as tenants move to new
office buildings outside the city centre. The
Helsinki prime rent has been stable the last
three years, while the prime yield has steadily declined since 2008, and is now at 5 %.
European office markets
The Jones Lang LaSalle “Office Clock” describes the European market situation by
plotting development in prime rents for
major cities. The clock illustrates the market movements for the different cities over 6
months. The rental growth in Stockholm is
still positive, but is moving towards a slower growth compared to 6 months ago, rents
in Helsinki have peaked out and are now
falling, while the rents in Copenhagen are
unchanged during the 2nd half of 2014.
International Office Markets
33
43
JLL Office Property Clock
Main European Cities
Q4, 2014
Lyon
Cologne
Helsinki
Berlin, Frankfurt, Gothenburg,
Stuttgart, Hamburg, Oslo, Malmö
St.Petersburg
Moscow
Munich
Rental Growth
Slowing
Rents Falling
Dusseldorf
London WE
Stockholm, Dublin, London City
Luxembourg
Rental Growth
Accelerating
Rents Bottoming
Out
Kiev
Geneva, Zurich
Warsaw
Manchester
Edinburgh
Amsterdam, Milan, Madrid
Athens, Brussels, Rome,
Bucharest, Budapest, Prague,
Copenhagen, Istanbul, Lisbon
Barcelona, Paris CBD
Source:
JLL
Akershus Eiendom
34
Key Information
Nordic Cities
Q4, 2014
Key Data
Inflation 2014 (%)
Prime Yield (%) (CBD)
Yield grade B properties (%) (CBD)
Prime Rent (Local Currency / Euro / m²) (CBD)
B grade Rent (Local Currency / Euro / m²) (CBD)
Office Space (m2) (Total)
Completions - 2014 (m²) (Total)
Completions - 2015 (m²) (Total)
Vacancy rate (%) (Total)
Oslo
2
4.5
5.50-6.00
4,200 / 490
2,500 / 290
8.3 mil
60,000
167,000
7.5
Stockholm
0.2
4.25
6.00-6.50
4,500 / 475
2,500-3,100 / 265-330
11.6 mil
167,300
68,000
9.1
Copenhagen
0.6
4.75
5.75-6.50
1,750 / 235
1,200 / 240
11.8 mil
140,000
175,000
10.3
Helsinki
1.1
5
7.00-7.50
300
186-210
8.6 mil
65,000
90,000
11
Gothenburg
0.2
4.5
6.00-6.50
2,600 / 283
1,800-2,300 / 190-240
3.3 mil
24,800
60,200
5.9
Sources:
JLL
Akershus Eiendom
International Office Markets
44
€/m2/year
35
Nordic Office Rent
Development
700
600
500
400
300
200
100
2013
2014
2013
2014
2012
2011
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
Oslo vacancy rate
Helsinki vacancy rate
Stockholm vacancy rate
Copenhagen vacancy rate
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0%
1997
Nordic Vacancy
Development
2010
Source:
JLL
Akershus Eiendom
Oslo prime rent
Helsinki prime rent
Stockholm prime rent
Copenhagen prime rent
36
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
Source:
JLL
Akershus Eiendom
International Office Markets
37
Nordic Yield
Development
45
7.50%
7.00%
6.50%
6.00%
5.50%
5.00%
4.50%
2013
2014
2014
2012
2011
2010
2013
Oslo prime yield
Helsinki prime yield
Stockholm prime yield
Copenhagen prime yield
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
4.00%
Source:
JLL
Akershus Eiendom
€/m2
Prime Value Index
14 000
Prime rent/prime yield
12 000
10 000
8 000
6 000
4 000
2 000
Oslo value
Helsinki value
Stockholm value
Copenhagen value
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
1997
38
Source:
JLL
Akershus Eiendom
The Retail Market
46
The
Retail
Market
status
Retail sales volumes have been good during
2014 after a longer period with consumption growth weaker than expected; lower
interest rates appear to have worked against
a weaker employment outlook. In December 2014, consumer confidence reached
its lowest levels since 2008, but has risen
marginally in January 2015. With consumer
confidence at low levels, wages stagnating,
and the savings rate increasing, most observers expect slow consumption growth
going forward.
Retail sales volume (excluding motor vehicles) is up by 2.7 % year-on year. Statistics
Norway has reduced the estimate for future
consumption spending based on the current
economic situation, the weakening krone
and reduction in real wage growth will hold
consumption growth in households back.
Going forward, an improved economic
condition is expected to push consumption
growth up from 2017 onwards.
The retail investment market
Retail transactions amounted to close to
NOK 5.7 billion in 2014 which is close to
7 % of the total transaction volume in Norway including the IPO of Entra, and close
to 10 % excluding Entra. This is considered
low compared to 2013 and 2012, when retail transactions amounted to about 20 %
and 30 % of the total transaction volume,
respectively.
However, there have been a few interesting
transactions with new, international players entering the Norwegian market during
2014. Oslo in particular is currently experiencing an inflow of foreign capital within
the retail segment. Madison International
Realty increased its exposure in Steen &
Strøm Magasin by acquiring a 50 % equity stake from Schage Eiendom, Meyer
Bergman purchased Grensen 17 in Oslo
as their first acquisition in Norway, and
Deka Immobilien, one of Germany’s biggest investment fund providers, entered
the Norwegian market when they acquired
Bekkestua Senter located right outside
Oslo. In addition, Swedish Genesta sold
Karl Johans gate 14 and Kirkegata 23-25 to
a subsidiary of AVA Eiendom Partners, and
Aberdeen Eiendomsfond Norge II sold the
shopping centre Jærhagen located at Klepp
outside Stavanger to a company owned by
Coop Klepp SA.
In recent years, the investment market for
retail property has been very selective with
strong appetite for larger centres with good
track record. The shopping centre segment
has experienced a high degree of consolidation with few large players dominating the
market. As a large share of the top 50 largest centres in Norway has been acquired by
large players with continuous appetite, we
expect few of the largest centres to enter the
market in the near future.
The Retail Market
47
Retail volume index
Retail year-on-year growth
Retail volume index
Source:
Statistics Norway
Consumption volume index
Norwegian
Consumption Volume
Index 2005-2014
130
season adjusted volume index,
2005=100
115
Consumption year-on-year growth
15%
125
120
10%
110
5%
105
100
0%
95
90
-5%
85
Consumption year-on-year growth
Consumption volume index
Jul 14
Source:
Statistics Norway
Jan 15
Jan 14
Jul 13
Jul 12
jan 13
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jul 07
Jan 08
Jan 07
Jul 06
-10%
Jul 05
80
Jan 06
Consumption of goods measured in
volume has shown a positive trend
and is up 2.9% over the last twelve
months.
Jan 05
40
jan 15
-4%
Jul 14
90
Jul 13
-2%
jan 14
95
jan 13
0%
Jul 12
100
Jul 11
2%
Jan 12
105
Jan 11
4%
Jul 10
110
Jul 09
6%
Jan 10
115
Jan 09
8%
Jul 08
120
Jul 07
10%
Jan 08
125
Jan 07
12%
Jan 05
Retail sales has increased lately and
is up 2.7% year-on-year.
130
Jul 06
Season adjusted volume index,
2005=100
14%
Jul 05
Norwegian Retail
Volume Index
2005–2014
Retail year-on-year growth
135
Jan 06
39
The Retail Market
48
m2/year
600 000
400 000
200 000
Permitted Norway
Started Norway
Completed Norway
Permitted Greater Oslo
Started Greater Oslo
Completed Greater Oslo
Source:
Statistics Norway
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
0
04 Q1
Permitted retail construction
have picked up in both Oslo and
Norway as a whole. Started retail
construction have picked up in
Oslo while continued to decline in
Norway as a whole.
800 000
03 Q1
Annual 4 quarter moving
average.
Q1 2001- Q4 2014
02 Q1
Retail Construction
2001–2014
1 000 000
01 Q1
41
The Hotel Market
50
The
Hotel
Market
hotel occupancy and room rates
In 2014, the hotel market has performed
slightly better than in 2013. According to
Statistics Norway, the number of guest
nights increased by 3.4 % to a total of 20.44
million guest nights for the year in total
with revenues of NOK 12.53 billion, an increase of 2.7 %. Revenue per available room
(RevPAR) also increased slightly to NOK
468, up by 1.1 % from 2013.
The Oslo market had a positive development compared to 2013. The number of
guest nights was MNOK 4.01 and the total
revenue in NOK 2.52 billion, up 6.9 % and
3.4 % respectively. However, the average
number of rooms in Oslo increased by as
much as 9.5 % to 12,651. Thus, the average
RevPAR for the year decreased by 0.8 % to
NOK 599, down from an average of 604 in
2013.
Hotel construction
As can be seen from graph 44, there has
been a significant upswing in the number
of permitted and completed hotel square
meters in 2014, both in Oslo and Norway
as a whole. On the other hand, the volume
of started square meters are almost in line
with the development we saw during 2013,
a relatively low level. Hence, the completion
rate should decrease for the coming couple
of years.
hotel transactions
Hotel transactions during the second half
of 2014:
• Eiendomsspar acquired Karl Johans gate
33 (Magnusgården) in September, along
with Rosenkrantz gate 11. The property
houses Best Western Karl Johan which
offers 114 rooms. The hotel was fully renovated in 2008 and 2009, and the price
was NOK 460 million.
• In September, Thon and Reitan acquired
Britannia Hotel in Trondheim. The hotel
has 247 rooms and is run by Thon Hotels.
The price was approximately NOK 400
million.
• A hotel property in Lagårdsveien 61 in
Stavanger was sold by KLP to an unknown buyer in December for NOK 160
million. The current tenant is Carlson
Rezidor Hotel Group and the lease expires 08.31.2016. The property will then
most likely be converted into apartments,
due to the property’s location in the city
center of Stavanger and the building’s
renovation needs.
The Hotel Market
51
No. of guest nights per month in thousands (1 000)
42
Volume of Guest
Nights in Norwegian
Hotels 2003–2014
The graph shows the split
between the volume of foreign
and domestic guest nights in all
hotels of Norway. Figures are
seasonally adjusted.
1 400
1 200
1 000
800
600
400
200
14 Jan
15 Jan
15 Jan
13 Jan
14 Jan
Domestic guests
Foreign guests
12 Jan
11 Jan
10 Jan
09 Jan
08 Jan
07 Jan
06 Jan
05 Jan
04 Jan
03 Jan
0
Source:
Statistics Norway
RevPAR
Real RevPAR
2003–2014
1 000
900
800
700
600
500
400
300
200
100
Oslo
Norway
13 Jan
12 Jan
11 Jan
10 Jan
09 Jan
08 Jan
07 Jan
06 Jan
05 Jan
0
04 Jan
The graph shows the development in real RevPAR in today’s
values. All figures are seasonally
adjusted.
03 Jan
43
Source:
Statistics Norway
The Hotel Market
52
m2/year
Hotel Construction
2001–2014
250 000
annualized 4-quarter total
200 000
There has been a sharp
increase in completed hotels in
Norway and in the greater Oslo
region.
150 000
100 000
50 000
Permitted Norway
Started Norway
Completed Norway
Permitted Greater Oslo
Started Greater Oslo
Completed Oslo
Source:
Statistics Norway
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
02 Q1
0
01 Q1
44
The Logistics Market
54
The
Logistics
Market
The logistics property market
Since our previous report published in October 2014, we have not changed our view
on rent levels. The different rent levels can
be seen in the map, where prime rent still
stands at 1,200 NOK/m²/year. Observed rent
levels are high from Berger to Vinterbro, as
these hubs are very popular. Their closeness
to effective intersections with the main highway E6, short driving distance to Oslo and
the availability of vacant land plots make
these hubs a good alternative to the relatively fully developed area around the Alnabru
national cross dock terminal (Alna/Nyland).
Vacancy in the greater Oslo region measured as floor space available now or within
3 months, stands at 4.5 % as of December
2014, down 1.0 %-points since our previous
report. The different regions in the market
have had a somewhat different development.
The vacancy within the Oslo city limits has
decreased with 2.0 %-points, and the vacancy level is at 6 %. This is due to substantially
lower vacancy in the secondary geographi-
cal locations within the larger northeastern
Groruddalen area. At the same time the
vacancy level in the greater Oslo North and
West region has decreased with respectively
1 %-point and 2.8 %-points, levels are now at
2.2 % and 3.8 %. The vacancy level has decreased within almost all smaller clusters.
The Greater Oslo south region has had a
somewhat different development. The vacancy rate has increased with 1 %-point to
6 %, due to increasing vacancy in the smaller
Mastemyr-Sofienmyr cluster.
The transaction activity has been very high
in 2014, and the registered number of deals
has been higher than what we have seen for
the last three years. The transaction volume
is thus almost at record high levels, coming in at just above NOK 10.1 billion. The
only year the transaction volume has been
higher was in 2006 with NOK 12.3 billion
in volume. The transaction volume contains several A-grade investment properties,
among others the Arcus production/storage
facility at Gjelleråsen, the COOP logistics
complex at Gardermoen, a portfolio of seven
newly constructed properties acquired from
BULK Eiendom, and two properties on long
leases in Ski Næringspark.
Based on recent market activity, we have
lowered our estimate for prime yield with
another 25 bps and our estimate is now 6.0 %
for a 10-year investment grade property.
The yield estimate is relevant for properties within the prime and secondary areas,
from Berger to Vinterbro. The yield estimate for investment grade properties with
substantially longer leases, within the same
geographical region, is slightly lower.
The Logistics Market
45
55
Logistics/Industrial:
Indicative Rents
March 2015
Gardemoen
Kløfta
Berger
Lillestrøm
Groruddalen
Other Oslo
Oslo West Other
Regnbuen /
Berghagan
Ski
Vestby
Rent NOK/m² for prime standard
and normal standard:
1 000–1 200
800-1000
700-800
-750
Source:
Akershus Eiendom
The Logistics Market
56
NOK/m2/year
46
Prime Rent for
Warehouse/Logistics
1 400
1 200
Greater Oslo region 2001-2014.
1 000
Prime rent, seen in the central parts
of Groruddalen close to the Alnabru
rail terminal, is still NOK 1,200 per m².
800
600
400
200
15 Q1
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
02 Q1
01 Q1
0
Source:
Akershus Eiendom
m2/year
Logistics
Construction
2001–2014
1 800 000
1 600 000
1 400 000
Annualized 4-quarter total
1 200 000
1 000 000
800 000
600 000
400 000
200 000
Permitted Norway
Started Norway
Completed Norway
Permitted Greater Oslo
Started Greater Oslo
Completed Greater Oslo
Source:
Statistics Norway
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
0
02 Q1
There has been an increase in
permitted and started projects
nationwide over the last two
years.
01 Q1
47
The Residential Market
58
The
Residential
Market
residential prices
According to Real Estate Norway, the increase in the residential prices slowed down
during the second half of 2014. However,
on a year-on-year basis, prices are up 8.5 %
from January 2014, where January 2015
contributed with an increase of 2.9 %. On
average, prices in 2014 were 2.1 % higher
than in 2013, and the prices so far in 2015
are 4.8 % higher than in 2014.
to Norges Bank’s projections, the key policy
rate is expected to fall during 2015 before
stabilising and slowly start to increase again
towards the end of 2016. We expect the
mortgage rates to follow this development,
falling somewhat during 2015. This, combined with a low construction rate, might
put even more upwards pressure on the
housing prices going forward.
All the largest cities experienced increases
in housing prices. Once again, Tromsø had
the highest growth with prices, 16.9 % higher than at the same time last year. Larger
cities also experienced strong growth with
prices increasing 10.3 % in Oslo and Bergen,
and 8.2 % in Trondheim. Moreover, prices
in Kristiansand increased by 6.8 %, while
the price increase in Stavanger was only
3.1 %. Stavanger might now see the beginning of a slowdown in the market due to the
fall in oil related activity.
Residential construction
The number of residential units under
construction has been falling throughout
2014 and the construction volume is now
almost 4 % down compared to the end of
2013. Most observers cite the slow sales in
2013 as the reason for this. As can be seen
from the graph, the construction volume is
still at solid levels compared to the last ten
years, as the completion rate was at a similar level in 2006-2007, and the volume in
production is still higher than the previous
peak in 2008.
In recent years we have seen a negative
trend in the money market rates. According
Meanwhile, the housing prices have increased during the same period, and total
turnover in the housing market for new
units was 5 % higher in 2014 compared to
2013. This amounts to a growth of more than
4,000 dwellings per year and has continued
into the first quarter. The expected volume
of new units going into construction is expected to rise in 2015 compared to 2014 due
to the increase in sales. This is likely to keep
construction at a solid level throughout the
year – although still a bit lower than 2013.
The Residential Market
59
Average sales price, NOK/m2
30%
25 000
25%
20 000
20%
15 000
15%
10 000
10%
5 000
5%
0
0%
Year-on-year change, by month, %
Average residential price NOK/m²
Jul 14
Jan 15
Jan 14
Jul 13
Jan 13
Jul 12
Jul 11
Jan 12
Jan 11
Jul 10
Jan 10
Jul 09
Jul 07
Jan 09
-15%
Jul 08
-15 000
Jan 08
-10%
Jul 06
- 10 000
Jan 07
-5%
Jul 05
- 5 000
Jan 04
Residential prices increased by an
annual 8,1 % from December 2013
to December 2014.
30 000
Jan 06
Nominal values
35%
Jan 05
Residential Prices
2004–2015
% annual price change
35 000
Jul 04
48
Sources:
Econ Pöyry
Finn.no
Norwegian Assosiation
of Real Estate Agents (NEF)
Volume of residential units
Residential
Construction
in Norway
1993–2014
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
Residential units under construction
Completed residential units, last 12 months
Source:
Statistics Norway
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0
1995
Both units under contstruction and
completed dwellings have declined
slightly during the second half of 2014.
1994
49
Definitions
61
Definitions
Area definitions
BTA
BRA P-rom BYA Gross area
Usable area
Living area – residential
Foot print of the building
Abbreviations
NAV CBD CPI NOK SSB Norwegian Labour and Welfare Agency
Central Business District
Consumer Price Index
Norwegian Krone
Norwegian National Bureau of Statistics
Depreciation
Document tax (stamp duty)
Property tax Office buildings
2%
Warehouse/industrial 4%
Shopping centres 2%
Hotels 4%
Investments 10%
2.5% of transaction value
Depends on the county, many currently have a zero rate.
Taxes and depreciation
Akershus Eiendom
62
Akershus
Eiendom AS
Akershus Eiendom AS is an independent
property advisor focusing on commercial
property; offices, warehouse facilities,
shops/shopping centres, hotels, land,
and related types of property. Akershus
Eiendom advises its clients on sales,
leasing, development, research, valuations
and other areas of commercial property
business. Akershus Eiendom has during the
past five years handled sales transactions
for properties of a total value of more than
NOK 37 billion, and has handled leasing of
more than 700 000 m² of office space.
Akershus Eiendom is associated with
Kyte Næringsmegling in Bergen,
Eiendomsmegler1 in Trondheim and
Stavanger, and JLL internationally.
Manager
Transactions
Research/valuation
Per Kumle
Petter Nylend
Roar Sandnes
Jørgen Haga
Christian Valdem
Rune Unsgård
Knut Berget
Jacob A. L'Orsa
Cecilie Ragner
Marte Overå
Sofia Hariz
Leasing
Tenant representation
Ragnar Eggen
Administration
Erik André Bratt
Karin Manengen
Ole Fredrik Vartomten
Birgitte Heskestad Ellingsen
Andreas Egset
Tor-Øyvind Skjelvik
Board of directors
Lasse Bjørndahl
Adam Ingwall
Ole Christian Iversen
Rune Arvesen
Anders Heffermehl
Ole-Jacob Leirskar
Stig Basing
Jonas Myhre
Remi Olsen
Morten Buøen
Lise Kaupang
Vigdis Sundvoll
Lars Føyen Kinserdal
Brith Hoel
Vigdis Sundvoll
Hilde Bang
Roar Sandnes
Geir Saastad
Jørgen Haga
Ragnar Eggen
Petter Nylend
Per Kumle
Ole Christian Iversen
Akershus Eiendom
In Cooperation
with
63
Haakon VII’s gate 5
P.O. Box 1739 Vika
NO-0121 Oslo
Reg.no. 963.877.722
T: +47 22 41 48 00
F: +47 22 41 48 06
W: akershuseiendom.no
Lästmakargatan 20
P.O. Box 1147
SE-111 81 Stockholm
T: +46 8 453 50 00
F: +46 8 453 51 10
W: jll.com
Bankgaten 8
P.O. Box 7999
NO-5020 Bergen
T: +47 55 55 30 50
F: +47 55 55 33 54
W: kyte.no
Søndre gate 4
P.O. Box 433 Sentrum
NO-7404 Trondheim
T: +47 73 89 06 00
F: +47 73 89 06 50
W: eiendomsmegler1.no
Petroleumsveien 6
P.O. Box 114
NO-4065 Stavanger
T: +47 51 95 65 75
F: +47 51 44 48 83
W: eiendomsmegler1.no
Photography: Sveinung Bråthen
Design: Anti