Offices in the Netherlands: Record Space Shortage Amid Rising Demand

Large corporations in the Netherlands have reduced their office footprints by an average of 40% over the past eighteen months, while young fintech companies, research firms, and consultancies have nearly doubled theirs. According to JLL, this divergence has not weakened the market: the vacancy rate has fallen to a historic low of 5.6%, and demand for modern offices remains high even as the number of compact deals grows.

Overall dynamics

About 87% of transactions over the past 18 months involved spaces from 500 to 2,500 sq m. The popularity of compact formats is explained by the shift to hybrid work models and business caution. At the same time, activity persists in the large-deal segment, with companies using relocations not only to optimise but also to expand.



An analysis of the five largest office markets shows that almost half of companies (49%) moved into new buildings, 21% opened additional offices, and 30% signed leases for other reasons, including temporary space and deals related to mergers.

The contrast is particularly pronounced between mature corporations and younger players. More than a third of organisations reduced space by an average of 41%, while about half of tenants nearly doubled it—the average expansion was 88%. The main drivers were fintech, R&D, and professional services companies.

Notable leases include the insurer VGZ’s contract for 4,970 sq m in Kennedy toren in Eindhoven. In Amsterdam, U.S. firm Palo Alto leased 5,200 sq m in The Valley on the Zuidas, while Salesforce is preparing to move into EDGE Stadium, where it will occupy about 6,000 sq m. The vacancy rate fell to 5.6%, a historic low.

Q2 2025

The Dutch office market in Q2 2025 remained subdued. According to JLL, the sector was characterised by a “blocked” dynamic: companies postpone moves unless they can secure a significant upgrade in quality and location, while the supply of high-grade offices remains constrained. Meanwhile, the vacancy rate continued to decline, reaching 5.2%.



Leasing volume in the first half of the year is estimated at 347,590 sq m. Demand persists but is selective. Corporate decisions on expansion or relocation are complicated by the economic backdrop, and limited new construction keeps the shortage in place. Rent growth was recorded in key clusters such as Rotterdam and Utrecht. In Amsterdam, the average rent remains at €580 per sq m per year, underscoring stable interest in quality offices in the capital.

The investment market showed stability: transaction volume reached €598.4 million, and the prime yield stayed at 4.75%. JLL expects investor activity to increase in the second half of 2025, with large transactions returning to the market. No substantial changes in the demand structure are anticipated.

Amsterdam: the office-market locomotive

In H1 2025, leasing volume in the capital reached 93.9 thousand sq m, 40% above last year’s level. Decisions on relocations and expansions in Amsterdam were taken slowly, but even with such caution, tenant activity increased. The vacancy rate held at 8%, and prime leases were recorded around €580 per sq m per year. The strongest interest was in projects near major transport hubs, where limited supply creates potential for rent increases.



Smaller transactions dominated Amsterdam’s office segment: almost 83% involved spaces up to 2,500 sq m, and another 16% were in the 2,500–5,000 sq m range. Large-tenant contracts were rare. The most notable was an agreement with Ayvens for 9,500 sq m at The Joan in the Overamstel area. The flexible-office market also stood out: 11 new contracts with coworking operators were signed in the first half alone.

The investment market strengthened: capital invested reached €99.6 million, while the prime yield remained at 4.75%. JLL forecasts that Amsterdam’s economic resilience and international business reputation will underpin further growth.

Rotterdam: revival amid a shortage of quality space

Rotterdam’s office market showed signs of recovery. Q2 leasing volume reached 16.4 thousand sq m, significantly above the weak result in January–March. However, the half-year total was only 19.3 thousand sq m—34% below the five-year average.

Among the most notable deals were EY’s lease at The Modernist (6,200 sq m) and DPG Media’s 3,400 sq m at Edge Coolsgingel. These projects belong to the modern, high-class office stock and confirm businesses’ steady interest in quality locations.



The vacancy rate in the city remains stable at 4.6%, versus 5.2% nationally. A shortage of offices in the central business district pushed rents higher: prime rates reached €340 per sq m per year, 10% above the previous quarter.

Investors were also active: H1 investment in office assets reached €84 million. A key event was Mediterranean Shipping Company’s (MSC) purchase of the Blaak 555 building. The deal strengthened confidence in the market, and the prime yield remained at 5.5%.

According to JLL, demand for relocations will continue, but high capex may nudge some tenants to extend existing leases. Competition for the best space will keep rents rising, while new projects scheduled for 2026 will gradually ease supply shortages.

Utrecht: record leasing volumes and rising investment

In Utrecht, new leases in Q2 totalled 25.2 thousand sq m, bringing the H1 figure to 58.2 thousand sq m—44% higher year-on-year. The largest agreements were in the Lage Weide district: Rijksvastgoedbedrijf leased 12,100 sq m and Chrome ATE Europe 5,400 sq m.



Vacancy increased to 4.8%, yet remains below the national average. Prime rents rose from €325 to €340 per sq m per year. The strongest demand is around the railway station, where supply is extremely limited. Investment activity strengthened visibly: H1 transactions reached €151.4 million. A key event was Gold Tree Group’s acquisition of the Central Plaza complex. Prime yields held at 5.5%.

According to JLL, the main source of demand remains local mid-sized (MKB) companies, though tenants from nearby cities—including Nieuwegein and Almere—are also active. The station area remains the leading submarket, while specialised spaces are developing. Over the coming months, a positive trajectory is expected: stabilising rents and investor interest will continue to support growth.

Conclusion

The Dutch office market continues to combine low vacancy and limited supply with sustained tenant and investor interest. Amsterdam’s strong position confirms the concentration of demand in the largest business centres; Rotterdam faces a shortage of modern space and rising rents; Utrecht shows how local markets can gain weight through large leases and active investment.

The sector’s main challenge is a shortage of quality space amid high competition for prime locations. This situation encourages new development while simultaneously raising the importance of upgrading existing buildings to ESG standards and providing flexible formats. For developers and owners, it is strategically important not only to create additional space but also to adapt it to changing work models.