Banks, institutional investors, occupiers and public authorities in the Netherlands have joined forces on an 'historic' plan to tackle the country's high office vacancy levels.
Banks, institutional investors, occupiers and public authorities in the Netherlands have joined forces on an 'historic' plan to tackle the country's high office vacancy levels.
The parties aim to reduce the vacancy rate - currently running at around 16% nationwide and one of the highest in Europe - to 5% within 10 years by reducing the office supply and tailoring it better to occupier needs in terms of size, location and functionality.
A key element of the campaign will be the creation of local funds backed by a majority of office owners in a particular area which will be used to demolish or redevelop vacant properties. To this end, changes will have to be made to spatial planning legislation.
A plan of action will first be drawn up for the biggest Dutch office markets - Amsterdam, Rotterdam, The Hague, Utrecht and Eindhoven - where vacancy levels are highest. At 18% and in some areas 20%, vacancy levels are highest in Amsterdam.
The Dutch association of institutional investors IVBN has welcomed the accord, saying it offers office owners the possibility of tackling vacancy issues in problem locations which they could not address on their own. Critics, however, argue that the plan does not sufficiently limit the possibilities of building new office properties.
