Office City Profile Eindhoven Q4 2023
Explore Eindhoven's office market insights and trends with JLL's Q3 2023 Office City Profile. Analysis of supply, demand, investments, and future developments.
- Sven Bertens
This report provides a detailed analysis of the office market in Eindhoven for Q4 2023, showcasing a challenging landscape for both take-up and development. A historically low vacancy rate of 4.7% and limited high-quality office spaces have led to a reduction in take-up volume by 44% year-over-year, with demand focused on amenity-rich areas like Strijp and the city center. Despite this, there is a notable increase in search requests as companies show a strong preference for quality environments, a trend known as 'flight to quality.'
The office development market continues to face adversity with postponements and cancellations due to financing difficulties, leading to a scarce pipeline for 2024-2027 at approximately 88,000 square meters. Investment activities saw marginal recovery with a few transactions, but overall investment volume has declined significantly from the previous year. Stable prime net initial yields and high-interest rates from the European Central Bank confirm the ongoing economic caution in the market.
