Regions

Bergen

In the first half of 2024, a cautious investor sentiment has characterised the transaction market in Bergen, with levels not seen this low since 2014. We have recorded a transaction volume of approximately NOK 1 billion. Based on our observations, our estimate for prime yield today remains at 5.50 percent. Similarly, the yield for secondary areas in the region has remained stable at 7.00 percent.

Activity in the rental market in Bergen has remained strong. Demand for office spaces has held up well, driven by expectations of stable business activity in the region. Our estimate for prime rent in Bergen today remains at NOK 3,500 per square metre. Data obtained from KYTE Næringsmegling indicates that the office vacancy rate in Bergen has decreased by 50 basis points, now standing at 8.5 percent.

Trondheim

The transaction market in 2024 has shown a marked improvement in Trondheim. By the end of the first half of 2024, the transaction volume in Trondheim has reached approximately NOK 7.5 billion, with the sale of Entra’s Trondheim portfolio to E.C. Dahls Eiendom accounting for approximately 85 percent of the volume. Excluding Entra’s sale, the volume stands approximately at NOK 1 billion. Prime yield in Trondheim has remained stable at 5.75 percent.

In the leasing market, according to Eiendomsmegler 1 Midt-Norge, the office vacancy rate in Trondheim has reduced to 4.5 percent, down 20 basis points from 4.7 percent in Q4 2023, representing 79,000 square meters. The low office vacancy in Trondheim is due to high demand for office space in central areas and strong rental growth over the past couple of years. Prime rent currently stands at NOK 3,200 per square meter.

Stavanger

In the Stavanger region, policy rate development and uncertainty surrounding future rate cuts have created uncertainty in the transaction market. Activity has improved, but the gap between buyers and sellers still seems too large. This has resulted in a limited number of transactions in the first half of 2024. As of August, we have recorded a transaction volume of approximately NOK 2.7 billion. Based on our experience, prime yield development in Stavanger has been flat, remaining at 5.75 percent.

In the leasing market, strong activity has persisted, and robust demand for office space has contributed to a positive trend in rent levels. Prime rent in Stavanger city centre is currently NOK 3,700 per square meter. Continued low levels of new office space have further slightly reduced office vacancy rates. Figures from Eiendomsmegler 1 indicate an office vacancy rate in Stavanger of 7.6 percent.

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