Office Market

The office market has shown signs of improvement in 2024, both in transaction activity and leasing, despite a still cautious investment climate. With solid demand for office space and a limited supply of attractive properties, the market is stabilizing ahead of an expected upswing in activity. At the same time, international trends affecting office use and demand provide a basis for optimism in the coming years.

Transaction Market

Market sentiment for office properties has improved in 2024, with a 50 percent increase in office property transactions compared to 2023, bringing the total transaction volume to NOK 31.4 billion. However, this remains below the five-year average of approximately NOK 44 billion. Office properties account for 40 percent of the total investment volume, making it the most traded segment in the Norwegian commercial real estate market.

In 2024, Norwegian buyers have dominated the office property market in Norway, while international investors remain cautious about office investments. However, a strengthening global leasing market, driven by increased office utilization, could lead to renewed interest in office properties from foreign investors. Internationally, investor appetite for office buildings is growing, with a broader group of investors actively seeking opportunities in the sector. The limited supply of attractive properties is fueling competition, especially as more investors return to the market in anticipation of an upward cycle. Persistently high interest rates and volatile markets lead us to maintain our prime yield estimate at 4.75 percent.

Akershus Eiendom is assisting as a leasing agent for Norwegian Property in Telegrafen. Photo: Knut Neerland – Magent Photographers

Rent levels for high quality office space in Oslo, NOK per square meter

Rental Market

Leasing activity in the office market has been somewhat lower in 2024, with tenants exhibiting greater caution in their office space decisions compared to previous years. This has contributed to a slight increase in office vacancy throughout the year, reaching 6.7 percent at the start of 2025. In Oslo, office rents have seen moderate growth due to low supply and high demand for high-quality office spaces in prime locations. At the beginning of 2025, market rents for "high standard" offices in the Vika/Aker Brygge area stand at NOK 6,400 per square meter, representing a 1.6 percent increase from early 2024.

A growing number of international companies are encouraging greater office presence, with most expecting this to drive increased space requirements in the coming years. JLL anticipates that average office attendance will rise to four days per week. This is expected to boost demand for office space in the U.S. and Europe, where it has declined in recent years.

Akershus Eiendom assisted as a leasing agent for Ferd Eiendom in Hieronymus Heyerdahls gate 1. Photo: Knut Neerland – Magent Photographers

Vacancy rate Oslo average vs. Oslo CBD

Key figures

Outlook

Looking ahead, we expect office vacancy rates to remain stable and rental prices to continue their moderate upward trend toward 2026. Construction cost growth is projected to normalize, creating challenges for developers, who are likely to further delay office projects. As a result, we anticipate low volumes of new office developments in 2026 and 2027, keeping the supply of office space constrained for the near future.

Read our latest analysis regarding the office market here: Market Views, January 2025 | Office Market