a.s.r. real assets has published the third part of its research series on the polarisation of the Dutch office market. The new white paper entitled “How polarisation in the Dutch office market creates opportunities for strategic asset allocation – Part 3: What are the right office assets?” analyses which office properties will particularly benefit from increasing market segmentation in the future. The focus is on the impact of hybrid working models, increasing ESG requirements and changing user preferences on the performance of office properties.
The analysis shows that demand is increasingly focused on high-quality, flexible and sustainably designed office buildings in excellently connected urban locations. Increasingly, occupiers view office space as a strategic tool for retaining employees, driving productivity and implementing ESG goals. This creates a growing gap between high-quality prime assets and secondary office properties.
Dick Gort, CEO of a.s.r. real assets, explains: “The polarization of the office market is not only a challenge, but also creates significant opportunities for investors. Users are increasingly focusing on buildings that combine high quality of stay, sustainability, flexibility and excellent accessibility. This development is leading to a significant outperformance of high-quality office properties in strong urban locations.”
The white paper also shows that hybrid working models continue to drive demand for high-quality office space. Today’s employees expect flexible working environments with a high quality of stay, modern technology, good ESG standards and optimal public transport connections. At the same time, aspects such as daylight, greenery, quality of stay and communal areas are becoming significantly more important.
In addition, the study analyzes the impact on investors. According to the study, larger, ESG-compliant and technically flexible office buildings have higher market liquidity, more stable occupancy rates and stronger rental growth potential. This is particularly evident in the most important Dutch office locations, where prime rents in prime locations have risen significantly more strongly than average rents in recent years.
Pieter Vandeginste, Fund Director of the ASR Dutch Mobility Office Fund, comments: “The requirements of tenants have changed fundamentally. Office buildings that meet ESG criteria, support hybrid working models and at the same time create an attractive working environment are in demand. It is precisely these characteristics that are increasingly determining the long-term performance of office properties.”
The study comes to the conclusion that long-term successful office investments will require a clear focus on high-quality buildings in the best urban locations in the future. Sustainability, flexibility, user experience and accessibility are becoming central value drivers.
