Regions

Bergen

During the first six months of 2022, the Bergen region saw similar high volumes to last year. Transactions are expected to reach between NOK 10 billion and NOK 20 billion in 2022. Prime yield for Bergen is up by 75 basis points in 2022 and has now reached 4.50 per cent, whilst the secondary yield stands at 5.75 per cent. Demand for office space is stable, and rents in central locations have risen. Prime rents in Bergen are NOK 3,200 per sq m. Figures from KYTE Næringsmegling show that office vacancies have risen in 2022. The most recent vacancy rate in central Bergen is 8.5 per cent. The spike in vacancies is due to increased supply with several newbuilds yet to be absorbed.

↑  Bergen prime yield

Trondheim

Following impressive transaction volumes in 2021, Norway’s third largest city got off to a good start in the first six months of the year. Trondheim is home to many students, and residential transactions continue to dominate sales volumes in Trondheim in 2022. The sale of Voll Studentby with 689 student flats for around NOK 750 million is the single largest transaction so far this year. Prime yield in Trondheim has risen by 75 basis points in 2022 and now stands at 4.75 per cent. Prime rents in central Trondheim are stable at NOK 2,500, and we have seen top rents of NOK 3,000 for the best properties. Demand for office space is high, and rents in the city centre are expected to rise over the next 12 months. Around 29,000 square metres of new office space is expected to be introduced in 2022. The Trondheim market absorbs 30,000 square metres a year on average. This means vacancy rates are likely to remain unchanged in 2022.

Den høye aktivitetsveksten vi har hatt i norsk økonomi inntil nylig har bidratt til et brennhett kontormarked med svært lav arealledighet og uvanlig høy leieprisvekst. Selv om etterspørselen etter kontorareal skulle kjøle seg ned framover, antar vi at arealledigheten vil bli holdt nede av historisk lav tilførsel av nytt areal. Sammen med høy vekst i KPI, venter vi at lav arealledighet vil bidra til å støtte oppunder veksten i kontorleie til neste år.

↑  Trondheim prime yield

Stavanger

Like the other regions, The Stavanger region got off to a good start in the first start six months of the year. The acquisition of Tjelta Eiendom with its 22 properties for around NOK 2 billion is the biggest transaction so far in 2022. In addition to office and logistics transactions, the city centre also saw a retail transaction with the sale of the Arkaden shopping centre to Aurora for around NOK 380 million. Prime yield in Stavanger has risen by 75 basis points in 2022 and now stands at 4.75 per cent. Prime rents remain stable at NOK 2,700, with the best properties fetching significantly higher prices. The overall vacancy rate in Stavanger is now 9.2 per cent, according to Eiendomsmegler 1. We have to go back to spring 2015 to find similarly low vacancy figures in the region. Factors such as continuing high demand for office space and falling vacancy rates point to higher market rents in the times ahead.

↑  Stavanger prime yield