Transaction volumes in Bergen totalled NOK 14.4 billion in 2021 – significantly higher than the previous year. As in the remaining part of the country, the largest segments were offices and logistics, as demonstrated by the sale of the region’s largest logistics facility, Midtunbygget, in December. Prime yield in Bergen is now 3.75 percent after falling by 25 bps in the last quarter of 2021 and the first quarter of 2022. Figures from WPS Næringsmegling show that office vacancy rates have increased recently, now standing at 7 percent in central Bergen. The increase is primarily due to new office premises which have yet to be absorbed. Although rents for centrally located buildings have increased overall, prime rents have remained stable at NOK 3,200 since the end of 2020.

Norway’s third largest city saw an impressive transaction volume of NOK 5.1 billion last year. Apart from offices and the Trondheim Areal acquisition, the sale of two large student housing portfolios accounted for the bulk of the total volume. The sale of Campus Life and 360 Campus involved more than 800 student units and had a combined property value of around NOK 1.5 billion. Prime yield in Trondheim fell by 25 bps in 2021 and now stands at 4 percent. Prime rents, meanwhile, increased by NOK 200 in the same period to NOK 2,500 for attractive properties in central Trondheim. 25,000 sq. m. of new office space is expected this year, which is well within the absorbed office space average of up to 30,000, according to Norion Næringsmegling.

The commercial property market in the Stavanger region has picked up in line with increasing activity in the petroleum industry. 2021 was a record year with a transaction volume of around NOK 18 billion, in which the largest segment was logistics and industrial property. The two largest transactions last year were the sale of the data centre company Green Mountain by Smedvig Eiendom and the establishment of the new property company SVG Property with Entra, Camar and Oslo Pensjonsforsikring amongst its owners. SVG Property aims to become the leading property company in the region, and its inception involved the acquisition of Ankerkvartalet, Herbarium and Hinna Park for a total of NOK 4.5 billion. Office vacancy rates in Stavanger continue to fall, and Eiendomsmegler 1 expects rates to drop to 9.5 percent this year (down from 9.8 percent at the end of 2021). Prime yield in Stavanger fell by 25 bps in 2021 to 4 percent. Prime rents have remained stable in recent years at NOK 2,700. However, we have noted new leases attracting higher rents in some of the most attractive buildings such as the K8 tower.