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M A R K E T B E AT

BELGIUM REGIONAL Office Q2 2021

YoY Chg

12-Mo. Forecast

Overview The economic growth is expected to be back on track and increase by 5.5% in 2021 due to the success of the vaccination campaign and the relaxing of constraining measures. This means that GDP growth will be around pre-crisis levels at the end of 2021 after which growth levels will stabilise at 3.3% in 2022 and 1.6% in 2023. The unemployment rate is forecasted at 5.8% this year and should peak in 2022 at around 6%. It is expected that a lot of temporarily unemployed people will resume work in the second half of 2021 or will be able to find new jobs.

140K Take-up sq m (YTD)

165 Prime rent, (EUR/sq m/year)

Occupier focus

5.25% Prime yield (3/6/9 lease)

ECONOMIC INDICATORS Q2 2021 YoY Chg

12-Mo. Forecast

5.5% 2021 GDP Growth

5.8% Unemployment Rate

2.2% Consumer Price Index

In Q2, Flanders take-up decreased 31% to 43,000 sq m spread across 85 deals. Only the Ghent market overperformed, having recorded 23,000 sq m of take-up (more than Antwerp – a fairly rare occurrence), thanks to a handful of large deals. Chief among these was the own-occupation purchase of Green Court by Partena (7,500 sq m) followed by a 3,600 sq m pre-letting by Fluvius in ION’s Pulse project in The Loop. These deals demonstrate the pull of a decent speculative pipeline for occupiers hesitating to relocate to efficient/well thought out spaces in a post-COVID-19 market. Wallonia Q2 activity also decreased (-6%) with 17,000 sq m of take-up. However, the story would be very different were it not for a 10,000 sq m own-occupation development by VINCI Energies Belgium in Gosselies. The pipeline is strong (226,000 sq m by 2023) but consists mostly of committed schemes outside of Charleroi which is undergoing dynamic renewal phase of renewal. Prime rents remain stable at EUR 165/sq m/year in Antwerp and Ghent in Flanders, and EUR 160/sq m//year in Liège and Namur in Wallonia

Investment focus An impressive EUR 167 million were invested in regional offices during Q2, bringing the total after six months to EUR 229 million. A landmarkt EUR 110 million purchase of Baltisse’s AXS by AG Real Estate in Namur demonstrates the strategic value of locating new projects near train stations. Prime yields remain stable at 5.25% and apply to Antwerp and Ghent.

Outlook Prime yields are forecast to remain stable this year before possibly sharpening in 2022. We still expect occupier demand to be subdued (save the odd market-changing very large deal) and prime rents to remain stable. TAKE-UP, SQ M

INVESTMENT VOLUME PER REGION, EUR M

400,000

800

35

300,000

600

30 25

200,000

400

20 15

100,000

200

10 5

Source: NationalBank of Belgium, June 2021 Please note the economic data can vary significantly from one source to the other. Therefore, the figures provided should merely be used as an indication or trend.

0

0 2017

2018

Flanders regional markets

2019

2020

H1 2021

Wallonia regional markets

0 2017 2018 2019 Flanders regional markets # deals (RHS)

2020 H1 2021 Wallonia regional markets


M A R K E T B E AT

BELGIUM REGIONAL Office Q2 2021 MARKET STATISTICS REGION

MARKET

BUILT STOCK (SQ M)

AVAILABILITY (SQ M)

VACANCY RATE

Q2 2021 TAKE-UP

2021-2024 PIPELINE (SQ M)

PRIME RENT (EUR/SQ M/YEAR)

PRIME YIELD

Antwerp

2,232,000

238,000

10.67%

17,000

177,000

165

5.25%

Ghent

1,093,000

42,000

3.86%

23,000

104,000

165

5.25%

Leuven

564,000

n.a.

n.a.

2,000

36,000

150

6.50%

Mechelen

324,000

n.a.

n.a.

1,400

42,000

150

6.50%

Liège

519,000

27,000

5.32%

5,000

108,000

160

6.75%

Namur

523,000

38,000

7.28%

600

89,000

160

6.75%

Charleroi

475,000

12,000

2.50%

12,000

106,000

145

7.00%

Flanders

Wallonia

KEY OCCUPIER TRANSACTIONS Q2 2021 PROPERTY

MARKET

TENANT

SIZE (SQ M)

TRANSACTION TYPE

VINCI Energies Belgium Gosselies

Development

Charleroi

VINCI Energies Belgium

10,200

Green Court

Ghent

Partena

7,500

Purchase

Pulse

Ghent

Fluvius

3,600

Pre-letting

Antwerp

Belcof

2,900

Purchase

Green Water Tower

Antwerp

Orange Cyberdefense Belgium

2,300

Letting

Rubens Center

Antwerp

Wij Kopen Auto’s

2,200

Letting

Nijverheidsstraat

SHANE O’NEILL Senior Research Analyst +32 2 510 08 33 shane.oneill@cushwake.com CÉDRIC VAN MEERBEECK Head of Research & Marketing | Belgium & Luxembourg +32 2 629 02 86 cedric.vanmeerbeeck@cushwake.com

cushmanwakefield.com

*Renegotiations not included in leasing statistics

KEY SALES TRANSACTIONS Q2 2021 PROPERTY

SUBMARKET

BUYER / SELLER

SQ M

PRICE, EUR M

AXS Namur

Namur

AG Real Estate / Baltisse

28,500

110

Green Court

Ghent

Partena / Baltisse

7,500

30

Antwerp

Van Moer Logistics / Baloise

10,500

15

Zwijndrecht Business Park

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services.

©2021 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

Profile for Cushman & Wakefield Belgium

Q2 2021 | Regional Office Marketbeat | Belgium  

Regional Office Marketbeat is a brief summary of the office sector providing comment on recent trends as well as market data and analysis of...

Q2 2021 | Regional Office Marketbeat | Belgium  

Regional Office Marketbeat is a brief summary of the office sector providing comment on recent trends as well as market data and analysis of...

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