Ghent continues to develop Ghent has become the second most important office market in Flanders after Antwerp
and continues to show it is a unique market with stand-out characteristics such as world-class research and high tech clusters.
T
hough about 60% of the office market’s 1.5 million m² is found in the city centre in older office buildings and historical mansions, modern business parks constructed in out-of-town locations to the south of the city have managed to attract tenants from central sites. A series of new office developments in and around Ghent have proved to be very popular, and have done well in terms of absorption, such as Blue Towers (fully let in 2016) and the Quantum building (71% let). The redevelopment of the area around Sint-Pieters Station continues to be a priority for the city.
Average take-up but more deals
© CBRE
Several large-scale office schemes have been approved, and should increase the Ghent’s office stock by over 275,000 m² over the next 15 years.
20 BELGIUM REAL ESTATE SHOWCASE 2017
In 2016 take-up volume totaled 44,300 m² over 112 transactions. Compared to recent history, the take-up volume was average, but deal count was up by about one third. Leasing activity is generally concentrated in newer developments located in the southern periphery of the city, taking advantage of new-builds, very good access and visibility, and themed office parks. Significant deals in 2016 include KU Leuven acquiring Adbel (3,450 m²) in the city centre, the BNP letting in the Quantum building (2,603 m²) the ICT Cegeka letting of Blue Towers Schelde
(2,100 m²), and Arcadis Belgium letting (1,687 m²) in Zuiderpoort. 2017 got off to an average start, with the Re-vive acquisition of Nieuwewandeling 62 (3,700 m²) as part of the WATT project a notable transaction..
High prime rents due to very low vacancy
Vacancy in Ghent is one of the lowest in Flanders, registering around 5.1%. The market was underdeveloped for a long time, and, as a result, quality new space is limited. The city is taking a proactive role to promote and foster new development to meet the demand for welllocated space. Partly as a result of office scarcity, rents are among the highest in Flanders. The best offices in good locations in newly built premises in the city centre can reach up to 155 Euros/m²/year. Those premises with very good location and accessibility in the south of Ghent are seeing prime rents at 150 Euros/m²/year, while in the periphery around Ghent prices are generally 10% to 30% cheaper.