Eindhoven Office Market Profile - Q4 2013

12 Month
Summary Statistics Q4 13 Q-o-Q Y-o-Y Outlook
Take-up (000s sqm) 10 -26.3 % -22.5 %
Vacancy Rate (%) 11.6 0 bps -190 bps
Prime Rent (psm) 180 0 % -2.7 %
12 Month
Q4 13 Q-o-Q Y-o-Y Outlook
Capital Value (psm) 2748 0 % -2.7 %
Prime Yield % 6.55 0 bps 0 bps
Change*
Change*

* % Change for Prime Rents and Capital Values calculated using local currency
Market Overview
The Eindhoven office market continues to feel the headwinds of
the economic conditions in the Netherlands, reflected in only low
occupier activity in Q4. Take-up fell 26% q-o-q to 9,685 sq m,
23% below the equivalent period a year ago. The single largest
deal that accounted for 68% of the total take-up volume was by
ASML Netherlands, who expanded their occupancy by leasing an
additional 6,600 sq m in the High-Tech Campus. Discounting this
deal, activity was muted in the final quarter. Occupiers make the
most of the current market situation and continue to successfully
negotiate flexible lease terms, which comprise 10-15 months
rent free on a 5+5 year lease contract in prime locations and 12-
20 months rent free for the same lease length at the overall
market level. Prime rents remained flat at 180 / sq m pa after
recording a fall in the previous quarter and are likely to remain
stable, going forward.

After recording a decline in Q3, office vacancy remained stable at
11.6%. The municipality is making continuous efforts to reduce
current vacancy levels. Expediting office conversions into other
uses and a restrictive new-build policy are two key measures in
that direction. The effect of these measures may however be
negated to some extent as occupiers continue to consolidate,
potentially increasing choice, particularly in peripheral locations.
There were no completions in Q4 and the development pipeline
of 9,855 sq m scheduled for completion in 2014 is fully pre-let.
After a quarter of no activity, the office investment volume
increased to 8.8 million in Q4. Prime yields were unchanged at
6.55%.










Figure 1: Take-up
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000s sqm
TakeUp 10yr Average

Figure 2: Supply and Vacancy Rates
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000s sqm
VacancyTotal VacancyRate
Vacancy Rate %

Figure 3: Prime Rents and Rental Growth
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-5
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Rental Growth PrimeRent
Prime Rent (psmpa) Annual Rental Growth*

Figure 4: Prime Yields
5.00
5.50
6.00
6.50
7.00
7.50
Q
4

0
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4

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1
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1
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1
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Q
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1
3
PrimeYield 10yr Average
Prime Yield (%)

Source all Charts: Jones Lang LaSalle











Eindhoven Office Market Profile Q4 2013
Pulsereports from Jones Lang LaSalle are frequent updates on real estate market dynamics.
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Jones Lang LaSalle Contacts

Frans Landmeter
Head of Office Agency - Eindhoven
Eindhoven
+31 40 250 0102
frans.landmeter@eu.jll.com
Dr van Leeuwen
Head of Capital Markets
Amsterdam
+31 20 540 7912
dre.van-leeuwen@eu.jll.com
Michael Hesp
Head of Research
Amsterdam
+31 20 540 7851
michael.hesp@eu.jll.com
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