The Norwegian Commercial Property Market
Spring 2016
The Norwegian Commercial Property Market
This market report is intended to provide an overview of the Norwegian property market. The report highlights important trends and gives specific examples of transactions in the leasing and investment markets, important new property developments, etc. This report is intended for general information and is based upon our own material which we believe to be reliable or material supplied to us. Whilst every effort has been made to ensure its accuracy and completeness, we cannot offer any guarantee that factual errors may not have occurred. Akershus Eiendom takes no responsibility for any damages or loss incurred owing to the inaccuracy or incorrectness of this report. This report was last edited on March 14th 2016. For further information please contact Akershus Eiendom AS. Comments, suggestions or questions regarding the contents and presentation of this report are welcome at research@akershuseiendom.no
Table of Contents
06
Main Points
08
Macro Economics The Norwegian Economy
12 14 18 20 24
The Oslo Office Market Overview of the Market Rent Levels Survey of Relocation Patterns Vacancy Development
30
The Investment Market
34
Regional Property Markets
42
International Office Markets
46
The Retail Market
50
The Hotel Market
55
The Logistic Market
58
The Residential Market
61
Definitions
62
Akershus Eiendom
Main Points
6
Main Points
• After several downwards revisions, the 2015 Norwegian gdp growth ended at 1.5 % which is close to the estimate in our previous report. Estimates for 2016 are also relatively unchanged at 1.8 %. The oil industry is still shedding jobs, but except for four counties on the western and southern coast, employment in Norway is still rising. • Office rents in most of Oslo are marginally lower at the start of 2016 compared to one year ago, and in the western fringe, up to 10-20 % lower. The volume of new signed leases is almost unchanged for 2015 compared to 2014. • Our annual survey of relocating trends on the office market mostly shows a similar pattern compared to previous years. It is however the cbd which is now experiencing a flight of tenants to the fringe areas. Mainly, this is due to lack of suitable space in the cbd. • The expected volume of new office buildings in Oslo for the years 2016-2017 is at a record low for a two-year period.
• Oslo office vacancy peaked at 8.5 % in July 2015, and was at 7.5 % in January. This is mainly due to low net construction volumes, and a slow, but steady growth in demand in the Oslo market.
street top rent has declined for the first time in seven years, although from a very high level. The retail transaction market has been very active, and all types of retail property have been sold.
• The 2015 transaction volume, at 118 bnok, is an all-time high volume by almost 50 %. Several factors contributed to the solid volume, and not all factors are equally present going into 2016.
• The solid trend in the hotel market revenue continued throughout 2015 with a 6 % yearon-year growth rate in volume of guest nights.
• Our prime yield estimate is down to 4.0 %. Low interest rates have persisted, but higher margins appear to make this the bottom yield level. • The sales volumes have been strong in all the secondary cities Stavanger, Bergen and Trondheim for 2015. The office leasing markets are weaker compared to Oslo, especially in the fringe markets, for both supply and demand reasons. • Norwegian consumer consumption has been stable going into 2016, although consumer confidence is still low. Retail rents are mostly stable, but the Oslo high
• The logistics leasing market has not been affected by the slowing economic growth, although some industrial properties in the western part of Norway are likely to have taken a hit. The demand for long-leased properties in the transaction market has been solid. • The growth in residential sales and prices throughout 2015 appears to have slowed down somewhat by the end of the year. As of February, the prices are marginally down from last month, and 4.4 % higher than one year ago, a lower year-on-year growth than all of 2015. Oslo had 11 % price growth for 2015 as a whole, and most other cities noted 5-10 % growth. Stavanger, however, saw a 1 % decrease in prices.
I
Macro Economics
8
The Norwegian Economy
According to Statistics Norway (SSB), the Norwegian mainland economy expanded by 1,5 % in 2015. This is the lowest growth since the global financial crisis in 2009. For 2016, it is estimated that gdp will grow with 1,5-2 %. Traditional export growth is estimated at 3.4 % in 2015. Expected traditional export growth for 2016 and 2017 is 4.2 % and 3.3 % respectively. The lower nok exchange rate has contributed to competiveness and profitability for companies in all non-oil/gas export sectors. Traditional goods export in the first three quarters of 2014 compare to the same period in 2015 the growth was 5.8 %, compared to 2.7 % 2013/2014. The 2015 household savings rate was 10.2 %, whilst the estimate for 2016 is 10.4 %. The growth rate in household debt was 6.3 % year over year in 2015, which is higher than income growth (see below). Residential prices are expected to rise by 2 % in 2016 from a 7.2 % rise in 2015.
The decline in oil investments in 2015 is estimated by SSB to 11.5 %. DNB is expecting a slowdown in investments in 2016 by 15 %. DNB has used the estimate, that the oil price will rise to 55 dollars in 2016 in its calculations of the slowdown in oil investments. Investments in other industries increased with 3.8 % in 2015. Norwegian unemployment has experienced an expected increase in 2015, coming from a very low level. The level of unemployed (aku) at the end of 2015 was 4.6 %, whilst a year earlier, it was at 3.8 %. The average unemployment in 2016 is estimated by DNB to be 4.7 %. Nominal wages are expected to increase by 2.5 % in 2016. Last year’s increase was 2.7 %. According to Norges Bank, the capacity utilization in the mainland economy has been lower the past year and is estimated to decline further until the summer of 2017. After that it is expected to start a slow increase. cpi adjusted for tax changes and
excluding energy products (cpi-ate) were in January 3.0 % and cpi before adjustments 3.0 % as well. Oslo Stock Exchange (OSEBX) has so far in 2016 (late-February) declined by 7.8 %.
Macro Economics
01
9
Key Economic Indicators Level NOKm Annual change (%) 2014 2010 2011 2012 2013 2014* 2015F 2016F 2017F 2018F Gross domestic product 3 154 104 0.6 1.0 2.7 1.0 2.2 1.8 1.7 2.1 2.2 GDP mainland Norway 2 524 868 1.8 1.9 3.8 2.3 2.3 1.5 2.0 2.6 2.7 Consumption in households etc. 1 218 798 3.8 2.3 3.5 2.1 1.7 2.3 1.5 3.2 3.3 General government consumption 691 505 2.2 1.0 1.6 1.0 2.9 2.6 3.5 2.1 2.3 Gross fixed investment 733 998 -6.6 7.4 7.6 6.3 0.0 -2.7 0.6 3.3 2.4 Exports 1 219 222 0.7 -0.8 1.4 -1.7 2.2 3.4 2.4 1.9 2.2 Crude oil and natural gas 550 985 -6.9 -5.6 0.5 -5.5 1.9 2.0 0.7 0.0 0.1 Traditional goods 342 949 3.3 -0.1 -0.2 1.3 2.5 5.4 4.2 3.3 3.6 Imports 929 633 8.3 4.0 3.1 4.9 1.5 1.2 2.1 3.9 3.7 Traditional goods 544 002 9.2 4.6 2.6 2.3 1.0 1.5 2.1 4.5 4.5 Prices CPI 2.5 1.2 0.8 2.1 2.0 2.2 2.8 2.1 1.6 CPI-ATE 1.4 0.9 1.2 1.6 2.4 2.7 2.6 1.9 1.4 Housing Prices 8.3 8.0 6.7 4.0 2.7 5.8 1.5 4.4 5.7 Employment Unemployment rate (% of work force) 3.5 3.6 3.3 3.2 3.5 3.5 4.4 4.6 4.4 4.3 Employed persons (percentage change) 2 744 -0.5 1.5 2.1 1.1 1.1 0.7 0.7 1.4 1.0 Participation rate (level) 71.9 71.4 71.5 71.2 71.0 71.2 71.2 71.2 71.3 Interest rates 10-year Government Bond rate (%) (Feb. 14) 1.25 3.95 3.73 2.51 2.13 3.00 1.48 Money market rate (level) (3M NIBOR) 1.10 2.5 2.9 2.2 1.8 1.7 1.3 0.8 0.8 1.0
Source: Statistics Norway As of february 2016
Macro Economics
02
Key Interest Rates 2003–2016
10
8% 7% 6% 5% 4% 3% 2% 1%
NIBOR 3 months SWAP 10 years 10 year Gov. Bond Norges Bank, Sight deposit rate
Jul 15
Jan 16
4.1%
5%
2.1%
1.0%
1.4% 0.7%
0.7%
1.1%
2%
1%
-0.5%
-0.5%
1.1%
1.5%
1.3% 0.5%
0.4%
1 400
-1.2%
0.3%
2.0%
0.9%
0.6%
1 700
3.3%
2.9%
2 000
3%
1.7%
1.9%
2 300
4%
2.7%
3.5%
2 600
0.7%
0%
National employment change %, right axis Employment change %, SSB and DNB average forecast Total employed Norway, thousands, left axis Total employed, SSB and DNB average forecast
Source: Statistics Norway and DNB
2018E
2017E
2016E
2014
2015E
2013
2012
2011
2010
2009
2007
2008
2006
2005
2003
2004
2001
2002
2000
1998
1999
1997
-2% 1996
800 1994
-1%
1995
1 100
1993
Norway 1992–2016E
Change, %
2 900
1992
Change in Total Employment
Jul 14
Source: Norges Bank
Employees, thousands 03
Jan 15
Jul 13
Jan 14
Jul 12
Jan 13
Jul 11
Jan 12
Jan 11
Jul 10
Jul 09
Jan 10
Jul 08
Jan 09
Jul 07
Jan 08
Jul 06
Jan 07
Jul 05
Jan 06
Jul 04
Jan 05
Jul 03
Jan 04
Jan 03
0%
USD/NOK EUR/NOK
Source: Norges Bank
130
110
100
90
80 Jul 04
Jul 14
Jan 14
Jul 13
Jan 13
Jul 12
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jan 08
Jul 07
Jan 07
Jul 06
Jan 06
Jul 05
Jan 05
Jan 16
120 Jul 15
140 Jan 16
Index, 2005 = 100 Jan 15
150
Jul 15
Source: Yahoo Finance
Jan 15
Jul 14
Jan 14
Jul 13
Oslo Stock Exchange (OSEBX) London Stock Exchange (FTSE 100)
Jan 13
Jul 12
Jan 12
Jul 11
Jan 11
Jul 10
Jan 10
Jul 09
Jan 09
Jul 08
Jan 08
Jul 07
Jan 07
Jul 06
Exchange Rates 2005–2016
Jan 06
05
Main Indices Oslo and London
Jul 05
Jan 04
04
Jan 05
Macro Economics 11
400
Index, 2004 = 100 350
300 250
200 150
100
50
0
The Oslo Office Market
12
Overview of the Market
The Oslo office building stock, including Lysaker/Fornebu, today stands at around 8.6 million m2. Of the total volume, roughly 3.3 million m2 are situated within the city centre. The city centre office areas are marked in the map as seven areas/ circles, from Solli Plass in the west to Bjørvika in the east. Since 2007, the city centre has seen major urban redevelopment. Two new neighbourhoods at the waterfront, Tjuvholmen and Bjørvika, have been developed to become mixed residential and commercial areas. Bjørvika still has potential for further large development projects, and in the longer term, Filipstad just west of Tjuvholmen will be available for massive commercial and residential development. Generally, Oslo has a great deal of urban sprawl, and the built-up area covers significant land areas compared to its population size. Most of the office building stock is concentrated in densely
built areas, and this is visible in the map. Office zones outside the Central Business District are generally found along the outer ring road from Lysaker through Nydalen, Økern and Helsfyr-Bryn to Ryen. All areas have seen new development over the last 10 years, and Fornebu and Nydalen have seen the highest activity. The area between the cbd and the outer ring road (in the map, seen as the Inner city West, North and East) is mostly in use for residential, education and retail purposes. The west of Oslo contains high-end residential areas with low density. The north-eastern corner of Oslo is the core area in all of Norway for logistical purposes, with many distribution centres for retail, wholesale and third-party logistics companies. Eastern and southern areas mainly consist of residential areas with varying degrees of density.
In most areas outside the major office hubs, we see slow but steady conversion of older office buildings into residential development projects, as these are generally more profitable than refurbishment for continued office use.
The Oslo Office Market
06
13
The Oslo Office Areas
Sinsen Storo Kjelsås Grefsen Nydalen
Oslo Outer East
Ullevål
Oslo Outer West
Økern
Alna-Ulven
Inner City North Majorstuen
Skøyen
Inner City West
Helsfyr-Bryn
CBD
Inner City East Ryen
Lysaker
Oslo Outer South Fornebu
500 000 m²
250 000 m²
50 000 m²
Source: Akershus Eiendom
The Oslo Office Market
14
Rent Levels
status The consensus rent estimates from Dagens Næringsliv for the second half of 2015 (see figure 09 and 10) show a continuous rent decline in the west fringe areas, including Skøyen. Increased subletting by, among others, oil companies during 2015 is the key driver. In comparison, centrally located premises have only seen a flat-to-marginal decline in rents. Demand for these premises are still good, while the supply is limited. The vacancy rate for Oslo cbd has been, and still is, below the overall Oslo average. During 2015, the Oslo rental market have experienced a tiny increase of 2.5 % in new signed office space compared to 2014. This has surpassed some analysts’ expectations of a decline in the signed volumes for 2015, a forecast strongly influenced by the oil price reduction and its direct and indirect consequences for the Norwegian economy and consequential demand for office space. Few other industries have reduced their staff and the overall employment is still rising in the Oslo region.
Since our last report, some notable new leases have been signed. Moteforum, Norway’s biggest platform for fashion, is taking up approximately 9,000 m² in Snarøyveien 30 at Fornebu. Additionally, UDI (the Norwegian Directorate of immigration) is expanding due to the increased inflow of refugees, and is taking up approximately 7,500 m² of office space in Stenersgata 8 and Christian Krohgs gate 1, respectively 4,200 m² and 3,300 m². trends Partly due to re-negotiations, there were few new large lease contracts signed in Oslo in 2015. Given the current lease expiry profile of many of the largest tenants taking up space in Oslo, we believe we will see several 10,000 m² + signings over the coming two years. Some of these tenants will renegotiate their current contract, but on average, 60 % of 10.000 m²+ users will sign new leases. As for the supply side, not many objects are available for takeover within a 2-year timeline, so the choices are limited and new projects will be in focus.
As of February, approximately 350 companies are actively in the market for just over 770,000 m² of office space in Oslo. The ten largest of these companies are looking for almost 230,000 m² of office space, equivalent to almost 30 % of the total active search. Of the top ten, 50 % are government or municipal agencies with contracts expiring within the next three years. Our forecast for 2016 is that rent levels in the west fringe areas will experience further decline. The oil service industry is still announcing cutbacks, and as a result, companies are willing to sublet significant parts of their office space. This puts pressure on competing vacant properties in the area. In addition, a surplus of available sites and properties in the fringe areas is, in combination with falling yields, creating some downward pressure. For the rest of Oslo the demand is good and we expect the rent level to remain stable between a +/- 5 % band from the current level. If the economic outlook does not worsen, we should expect increasing rents by the end of 2016.
The Oslo Office Market
07
15
Oslo Office Rents February 2016 The map shows office rent levels for high-standard units larger than 500 m² in different parts of Oslo, as of February 2016.
Sinsen Nydalen Storo Kjelsås Grefsen
Oslo Outer East
Ullevål
Oslo Outer West
Økern
Alna-Ulven
Inner City North Majorstuen
Skøyen
Inner City West
Helsfyr-Bryn
CBD Inner City East Ryen
Lysaker
Oslo Outer South Fornebu
Rent, NOK/m²: General high standard / Top standard and new space 3 200 / 4 200 2 700 / 3 350 2 250 / 2 800 1 800 / 2 400
08
Source: Akershus Eiendom
1 600 / 2 100 1 400 / 1 950 1 000 / 1 650
Oslo Office Leasing Examples Property/location Snarøyveien 30 Diagonale/Bjørvika Stenersgata 8 Christian Krohgs gate 15 Vitaminveien 1A Christian Krohgs gate 1 Henrik Ibsens gate 100 Fornebuveien 7-13 Silurveien 2 Fjordalléen 16 Filipstad Brygge 1 Nydalsveien 28 Nydalsveien 15 Dronning Eufemias Gate 6
Owner Telenor Hav Eiendom / Thongård Thon Eiendom Oslo Areal OBOS Forretningsbygg Thon Eiendom Höegh Eiendom/Steinsvik 50% Fornebuveien 7-13 AS Selvaag DNB Livsforsikring ASA Storebrand ASA Avantor Norwegian Property Watrium Eiendom AS
Tenant ~ Floor space, m² Area Moteforum 9 000 Fornebu TV2 6 000 CBD UDI 4 150 CBD Oslo Røde Kors 3 500 CBD GE Healthcare 3 500 Nydalen UDI 3 300 CBD Gabler 3 050 Prime Implenia 3 000 Lysaker Universitetet i Oslo 2 600 Western fringe Carnegie 2 500 Prime CSC 2 300 Prime Itera Norge 2 200 Nydalen Huset Høyer 2 150 Nydalen PRA Group 1 900 CBD
The Oslo Office Market
09
Year-End Rent Levels 2006–2015 The table shows year-end rent levels based on signed contracts, both new signings and renegotations.
16
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Prime 2 700 3 900 3 750 2 700 2 850 3 100 3 400 3 750 3 800 3 750 High std CBD 1 900 2 300 2 300 2 200 2 350 2 550 2 850 2 900 2 900 2 800 Newer space CBD 2 000 2 600 2 600 2 500 2 550 2 650 2 850 2 900 2 900 2 800 Good std CBD 1 400 1 900 1 900 1 850 1 900 2 250 2 250 2 400 2 450 2 400 High std Skøyen 2 450 2 650 2 700 2 550 High std west fringe 1 750 2 200 2 200 1 900 1 900 1 900 1 900 2 100 2 100 1 800 High std east fringe 1 300 1 550 1 650 1 550 1 650 1 650 1 700 1 800 1 800 1 800 Older, ineffective space 800 950 950 900 900 800 800 900 900 900
Sources: Dagens Næringsliv Akershus Eiendom
Office Rents 1985–2015
5 000
Nominal NOK
4 000 3 500 3 000 2 500 2 000 1 500 1 000 500
Prime High std CBD Newer space CBD Good std CBD
High std Skøyen High std west fringe High std east fringe Older, ineffective space
2015 H2
2013 H2
2014 H2
2011 H2
Sources: Dagens Næringsliv Akershus Eiendom
2012 H2
2010 H2
2009 H2
2007 H2
2008 H2
2006 H2
2005 H2
2003 H2
2004 H2
2001 H2
2002 H2
1999 H2
2000 H2
1997 H2
1998 H2
1996 H2
1994 H2
1995 H2
1993 H2
1991 H2
1992 H2
1989 H2
1990 H2
1987 H2
1988 H2
0 1986 H2
The figure shows rent levels based on signed contracts, both new signings and renegotations.
4 500
1985 H2
10
The Oslo Office Market
18
Survey of Relocation Patterns
relocation patterns for 2015 To map tenants’ relocation patterns across Oslo, Akershus Eiendom annually collects and analyse a representative sample of recently signed lease contracts.
As previous years, tenants located in the western part of Oslo decided to stay in the same area as opposed to moving elsewhere. The net effect for Oslo west is positive, and more so than for the other areas.
This year’s sample consists of 74 tenants occupying 151 000 m² (excluding renegotiated contracts and extensions), to produce the annual relocation statistics shown in figure 11 seen on the next page. This is slightly down from last year’s sample, but still high, and is mainly due to a couple of large office expansions. Kripos, Statens legemiddelverk and UDI (The Norwegian Directorate of Immigration) are examples of absorption of additional space during the year, to mention a few.
Tenants who chose to relocate within the cbd areas have increased during 2015 compared to 2014 and earlier years. This year, 73 % of all relocating tenants in the area decided to stay, whereas the tenants relocating out of the cbd areas were slightly favouring the western locations over the Eastern ones. The net effect for the overall cbd area is negative for 2015.
conclusions from the 2015 survey 2015 is no exception to the trend of relocating within the generally same area. As much as 75 % of the survey’s sample decided to stay in the same area when signing for new office space. This is 6 % up from last year’s survey.
Based on historical behaviour, there is no clear long-term trend as to where tenants prefer to relocate if they choose to move from Oslo East. As can be seen from the graph, this fluctuates from year to year with respect to the desired area. However, over the past 5 years, tenants slightly favour western locations over Oslo cbd. This is mainly due to lower rent levels in the western areas. Despite this 5-year trend, there is
significantly more volume relocating to the cbd areas in this year’s survey. implications from the last ten-year results of the survey The last ten-year results of our relocation survey are shown in the bottom graphs. Tenants relocating from cbd to eastern areas seem to stabilize around its 5-year average of 20 %. However, the trend from the initiation of this survey in 2005 is positive. West Oslo tenants are still reluctant to move eastwards, and the area continues to hold the highest average percentage of tenants staying within the same area. As much as 81% of the east Oslo tenants chose to stay, whereas only 4 % chose to relocate to Oslo West. Historically, this is among the lowest figures recorded.
The Oslo Office Market
11
19
Relocation Trends for Signed Leases 2015
Oslo
1 500 m²
20 600 m² Staying (74%)
The map shows the moving patterns of tenants who signed new contracts for office space during 2015, as represented by their volumes.
32 300 m² Staying (81%)
13 700 m²
The CBD is limited in the west at Solli Plass and in the east at Bjørvika. The tenants will physically move between 2016 and 2018.
60 800 m² Staying (73%)
6 100 m²
2 500 m² Oslo CBD Oslo West
8 800 m² Oslo East
Oslo West Net effect: 8 100 m² Oslo CBB Net effect: - 13 900 m² Oslo East Net effect: - 5 800 m²
Source: Akershus Eiendom
Share of office space
All tenants included in the survey: Have signed a new lease contract. It is not a condition that the company has physically moved during the year. Will occupy more than 500 m² of office space in their new location.
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
From CBD, West and East
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Moving Trends 2006–2015
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
12
Moving from CBD
Moving from West
Moving from East
Moving to CBD Moving to West Moving to East
Source: Akershus Eiendom
The Oslo Office Market
20
Vacancy
status Oslo office vacancy measured as floor space available now or within 3 months stands at 7.5 % as of January 2016, corresponding to approximately 650,000 m². This is down 0.5 % points since last quarter, and down 1 % points from six months ago. The vacancy has thus passed its peak. Seen in light of the latest development in the Norwegian economy, this might sound contradictory. However, there are several reasons explaining this. For Norway in general, we have seen a rise in unemployment during the past year, mostly explained by cost cutting in the oil industry and service sectors closely connected to this industry. However, this is not yet the case for the Greater Oslo area. In fact, during the same period Oslo has experienced stable unemployment. As the active workforce is growing, this means that the absolute employment growth has been positive for this area, measured in numbers of employed persons. Naturally, this drives
demand for office space. Based on Statistics Norway’s estimates for employment we will also see a small, but positive growth in 2016. Given the uncertainty characterizing the market in late 2014, tenants were reluctant to take up new or additional space, despite growth in employment at the time. During 2015, we have seen an increase in signed leases. Tenants are now taking decisions and ordering new space, and not waiting for the general economy to stabilize. The recent influx of refugees has also made a small, but notable impact on the vacancy rate since our last published report. UDI (The Norwegian Directorate of Immigration) has taken up 8,000 m² of additional office space in this period, and approximately 8,500 m² of vacant space at Philip Pedersens vei 20 located at Lysaker has been converted into a refugee reception. Given the exceptional growth in residential real estate prices and market demand for apartments over the recent years, a
significant volume of older and inefficient office space continuous to be converted into apartments. This is especially the case for areas such as Nydalen, Økern and Helsfyr right outside central Oslo. The population growth in Oslo has also led to office buildings being re-zoned and converted into schools. Because of this, our estimate of office space being transformed for other purposes has been revised up from 75,000 m² to 100,000 m² per year. As for the supply side, preliminary figures show that for the period 2016–2018, a total of only 176,000 m² of new office constructions will enter the market, of which only 24,000 m² in 2017. trends All the drivers discussed implies increased absorption of space over the coming years, and as a result, we believe future vacancy will decrease for the years 2017-2018, even faster than forecasted in our previous report. See graph 14 for a year-by-year forecast for the Oslo vacancy rate.
The Oslo Office Market
13
21
Oslo Office Vacancy
Sinsen Nydalen Storo Kjelsås Grefsen
This map shows vacancy in the various office areas of Oslo as of January 2016. Space counted is available at the latest by March 31th.
Oslo Outer East
Ullevål
Oslo Outer West
Alna-Ulven
Økern Inner City North Majorstuen
Helsfyr-Bryn
Inner City West
Skøyen
CBD Inner City East Ryen
Lysaker
Oslo Outer South Fornebu
13.0%
11.0%
m² office space
13.0%
Oslo Office Vacancy 2002–2018E
1 000 000 900 000
300 000
7.5%
8%
5.0%
6.5%
7.0%
6.5%
7.0% 4.5%
500 000
5.0%
600 000
400 000
8.0%
8.0% 7.0%
700 000
4.0%
200 000 100 000
Actual Forecast Vacancy level by the start of the year Net new office space added Change in demand (absorbed space)
Sources: Akershus Eiendom Various developers
2018E
2017E
2016E
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2004
2005
0 2003
The office vacancy will develop relatively flat for the coming years given today’s knowledge of supply and expectations of future demand.
9.0%
800 000 The columns show how vacancy changes due to demand. The forecasts of new demand and supply are based on knowledge about spesific office developments and the official estimates for employments growth.
2002
14
Source: Akershus Eiendom
<7,5% <5% <2,5%
<20% <15% <12,5% <10%
The Oslo Office Market
15
22
Vacancy Risk 2016–2018 The map shows the risk of future vacancy within each sub-area in Oslo in the coming two years until January 2018, based on known volumes of office space entering the market during the period, either through new vacant buildings or because the tenant has signed to move out. The analysis does not take into account the effects of tenants moving between subareas; it is solely a supply-side risk analysis.
Sinsen Nydalen Storo Kjelsås Grefsen
Oslo Outer East
Ullevål
Oslo Outer West
Økern
Alna-Ulven
Inner City North Majorstuen
Skøyen
Inner City West
Helsfyr-Bryn
CBD Inner City East
Lysaker
Ryen
Oslo Outer South Fornebu
High risk Medium risk Low risk
Source: Akershus Eiendom
The Oslo Office Market
24
Development
new office construction In 2015, 167,000 m² of new office space entered the market, which is a substantial increase from the 2014 volume of only 43,000 m². However, we estimate that 78,000 m² of office space was converted to other use during 2015, thus the net new office space added was only 89,000 m². In 2016 we expect 104,000 m² to enter the market and most of this has been taken up by tenants. For 2017 and 2018, the known construction volumes are only 20,000 m² and 31,000 m². The new projects’ locations and status are depicted in figure 16. There have been two new larger office buildings initiated since our last report. 12,000 m² at Nils Hansens vei 25 at Bryn is expected to be completed in 2017, while Diagonale next to the Opera house in Bjørvika is expected to be completed in 2018 adding 15,000 m². TV2 is leasing approximately 6,000 m² in Diagonale. Furthermore, the Oslo Municipal Agency for City Environment and Blue Water Shipping have moved in to the new offices at Hasle Linje, known
as Frontbygget. There is still approximately 3,900 m² available space in the building. Except for the ones mentioned above, few new large contracts have been signed since our last report. One of the larger contracts is Norsk Moteforum signing a contract with Telenor at their HQ in Snarøyveien 30, leasing 9,000 m². trends As can be seen from figure 16 and 19, we expect a low volume of new construction for the coming years due to the slowdown in economic growth. However, there are currently many large tenants seeking new office space, which might lead to contracts being signed for new office space. Moreover, we expect the vacancy rate to decline further over the coming three years, which might increase the demand for new office buildings in 2018-19. We also expect the yearly conversion of office space for other use to be around 100,000 m², thus the net supply of office space is expected to be close to zero in 2016, and negative in 2017.
construction costs As can be seen in graph 21, the order backlog for the total construction industry has increased further since our last report and is now up 7.7 % since bottoming out during the fourth quarter of 2014. The development is driven by new residential projects, rising as much as 20.1 % year-on-year. Due to high and increasing housing prices and strong sales, we believe the order backlog for residential construction to stay strong going forward. On the other hand, the order backlog for other new buildings, mainly commercial, has seen a negative development of 2.7 % in the same period. Akershus Eiendom’s estimated turnkey cost for new office buildings in Oslo, shown in graph 20, has remained stable since early 2014 and is currently at nok 20,000 per m² office space, which is unchanged from our last report. Over the next 12 months we estimate a slight decline in building costs, about 5 %. This is expected to happen due to “spillover effects” from the slow construction market in the western and southern parts of Norway.
The Oslo Office Market
25
The Oslo Office Market
16
26
New Office Buildings 2016–2019 2016: 89,000 m² 2017: 20,000 m² 2018 (known): 31,000 m²
Securitas Cowi
The map shows the location, year of completion, leasing/vacancy situation and relative size of the ongoing or in other ways confirmed office construction projects in Oslo. The names are either the address, project name, or tenant name where the project has one major tenant.
Cort Adelers gt 33
Storgata 14-18 DEG 6b
Sundtkvartalet
DEG 42 Diagonale
Ulvenvn. 90 Fredrik Selmers vei 4
Nils Hansens vei 25 - KRIPOS
17
Vacant
Occupied
Building A Fornebuporten
New buildings 2016 New buildings 2017 New buildings 2018–2019
Source: Akershus Eiendom
Available land plots for office development in Oslo 2016 Potential size, floor space m²:
150,000 m²
75,000 m²
25,000 m²
10,000 m²
Available now or within 4 years Long-term development potential, less certainty
Source: Akershus Eiendom
The Oslo Office Market
18
New Major Oslo Office Projects 2016–2018
27
Property/building Floor space m² Area Completion Developer Dronning Eufemias gate 42 4,200 CBD East 2016 Oslo S Utvikling Hasle Linje (Cowi) 12,500 Økern 2016 Höegh Eiendom Fornebuporten - building A 29,500 Fornebu 2016 Aker Storgata 14-18 8,500 CBD North-East 2016 Olav Thon Gruppen Sundtkvartalet 27,600 CBD North-East 2016 Entra Eiendom / Skanska Fredrik Selmers vei 4 6,500 Helsfyr-Bryn 2016 Entra Eiendom Ulvenveien 90 6,000 Alna-Ulven 2017 Oslo Trelastkompani LTD AS Cort Adelers gate 33 6,000 Prime 2017 Winta Eiendom Nils Hansens vei 25 8,200 Helsfyr-Bryn 2017 Pecunia Eiendom Hasle Linje (Securitas) 12,000 Økern 2018 Höegh Eiendom Dronning Eufemias gate 6b 4,000 CBD East 2018 Watrium Dronning Eufemias gate (Diagonale) 15,200 CBD East 2018 Hav Eiendom / Olav Thon
m2
New Office Space
300 000
250 000
200 000
150 000
100 000
50 000
Source: Akershus Eiendom
2019E
2017E
2018E
2015
2016E
2014
2013
2011
2012
2010
2009
2007
2008
2006
2005
2004
2003
2001
West East CBD Estimate (all areas)
2002
2000
1999
1997
1998
0 1996
Completed new office space in Oslo (including Fornebu). Only certain new buildings is included in the 2016 figures.
1995
19
The Oslo Office Market
28
NOK / m2 20
Estimated Turnkey Cost
24 000 22 000 20 000
Akershus Eiendomâ&#x20AC;&#x2122;s official estimate of turnkey cost is based upon information from recent initiated projects and input from valuations.
18 000 16 000 14 000 12 000 10 000
Jul 16
Source: Akershus Eiendom
Estimated future construction cost Observed construction cost
Value index for backlog
Order Backlog New Buildings Nationwide 2003â&#x20AC;&#x201C;2015 Quarterly index
275 250 225 200 175 150 125 100 75 50
National index, all new and rehab projects New residential buildings Other new buildings (mainly commercial)
Source: Statistics Norway
15 Q1
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
25 06 Q1
The graph shows the order back log for new buildings. The graph has been deflated by the total production index to remove effects of changes in building costs (basic component costs) and changes in margins to contractors.
05 Q1
21
Jan 17
Jul 15
Jan 16
Jul 14
Jan 15
Jan 14
Jul 13
Jan 13
Jul 12
Jan 12
Jul 11
Jan 11
Jul 10
Jul 09
Jan 10
Jul 08
Jan 09
Jul 07
Jan 08
Jan 07
Jul 06
Jan 06
Jul 05
Jan 05
8 000
The Investment Market
30
The Investment Market
The activity in the transaction market for commercial property was very high in 2015, and the year ended with a record-high transaction volume of nok 118 billion. This is an all-time high, exceeding the previous record of approximately nok 80 billion by almost 50 %. The main reason for the high activity has been the low long-term interest rates over the past year, and generally good availability in the debt capital markets. Interest rates increased slightly during the second half of 2015, but the 10Y SWAP fell to a record low level of approximately 1.7 % in December 2015. Solid demand from foreign investors has also contributed to the high activity level, driven by a Norwegian Krone that has weakened substantially as the oil price and the interest rates have fallen. We expect a strong year in terms of investment volumes, as Norges Bank has signalized that they will make further cuts in the key policy rate during the first two quarters of 2016, and interest rates are expected to reflect this. This should provide cheap financing, low returns on alternative assets, and maintain the
weak Norwegian krone – favorable for both domestic and foreign investment in real estate. On the other hand, this monetary policy is a response to the Norwegian economy slowing down due to the increasingly hard times in the oil and gas sector, with unemployment rates expected to increase within and around the sector. Fortunately, the weak Norwegian krone has served as a shock absorber for the current situation, making non-petroleum Norwegian exports more competitive abroad, as well as boosting the tourism industry. The investment market in 2016 will depend on the development in the Norwegian economy, as well as lending margins and availability of financing. 2016 has had approx. nok 4 billion worth of transactions as of February 10th, as Akershus Eiendom continue to observe pressure on the demand side in the transaction market. We believe the total transaction volumes for 2016 will end in the interval nok 70 – 80 billion. These levels may seem like a setback compared to the recordbreaking 2015 levels, but will nonetheless provide yet another strong transaction year. The main reasons are a tighter financing cli-
mate and the reduction in the number of large portfolios in the market; relatively few portfolios made up a large share of the 2015 volume. Transactions since our Autumn 2015 report: • Meyer Bergman acquired Promenaden Property from Søylen Eiendom and Madison International Realty. The transaction was valued at nok 5.3 billion. Meyer Bergman acquired 11 high-street retail properties, including the department stores Steen & Strøm Magasin and Eger Karl Johan. • A closed-ended fund set up by Pareto acquired Fornebuporten from Aker for approximately nok 3.2 billion. • City Finansiering sold Nydalen Allé 35 to a closed-ended fund by NRP. The transaction was valued at nok 505 million, at a yield around 5.25 %. • DNB Livsforsikring sold both the shopping center and office sections of Oslo City for a total value of approx. nok 5 billion. Steen & Strøm (owned by Klépierre)
The Investment Market
bought the shopping center for nok 3.3 billion, while Entra ASA acquired the office section for a reported nok 1.7 billion. • DNB Livsforsikring also sold Dronning Eufemias gate 30, also called Midtbygget (the middle building) to a closed-ended fund by Arctic Securities, with Trond Mohn’s Meteva AS the biggest investor. The sales price was approx. nok 3.9 billion, corresponding to a yield of around 4.15 %.
31
• CBRE Global Investors were aquired Hieronymus Heyerdahls gate 1 from the Bendixen family. This waterfront cbd “liebhaber asset” is believed to have sold for nok 920 million, at a yield corresponding to 4.25 % at market rents.
second half of 2015 continued, as the influx of foreign investors during 2014 and the first half of 2015 persisted throughout the year. In 2015, foreign investors’ share of transactions totaled 45 %. We believe this trend will continue into 2016.
• Nordea Liv purchased Rådhuspassasjen for nok 605 million from Eiendomsspar. This corresponds to a 4.75 % yield for the 10,100 m² building.
In 2015, there has been an increased interest in retail properties. The large retail portfolio transactions lifted the volume. During the year several large portfolios sold, including the shopping center portfolios Salto and Sektor, as well as the high-street retail portfolio acquired by Meyer Bergman. The final volume for retail properties was approx. nok 35 billion (which does not include the sale of the minority share in Salto). This corresponds to almost 30 % of total transaction volumes, and is twice the volume observed in 2012 when the previous record was set.
• A closed-ended fund by NRP bought Drammensveien 131 for nok 666 million from Berner Gruppen. Yara has signed a 10 year lease, with a 5 year break option (and a 3 year penalty if they exercise the option), and the 12,600 m² will serve as their new headquarters. The sales price corresponds to a 4.75 % yield.
• There were several transactions involving offices in Forskningsparken in 2015. The sale of Forskningsparken Hus 5 from a closed-ended fund by Industrifinans to a closed-ended fund by Arctic Securities for nok 338 million meant a yield of 5.15 % for the 12,500 m² building with approx. 11.5 years to run on the lease contract.
• Hines acquired, on behalf of Bayerische Versorgungskammer, Karl Johans gate 45 from Landkreditt Bank for nok 500 million. The 5,200 m² high-street retail and office building sold at a yield of around 4.0 %.
• 4 regional shopping centres were sold from Steen & Strøm into Sektor Portfolio II for just above nok 2 billion. The interest in Norwegian commercial properties from foreign buyers during the
Since our last report we have seen several transactions suggesting a further compression of the yield and we have therefore lowered the yield by 25 bps to 4.0 %.
The Investment Market
32
NOK Million 22
Transaction Volume of Commercial Properties Only deals larger than NOK 50 million are incuded in the graph. Volume in 2015 ended close to NOK 118 billion.
120 000
100 000
80 000
60 000
As per February 10th, 2016 volume totals NOK 4 billion. 40 000
20 000
Residential projects Commercial land plots Logistics / industrial properties Hotels Retail properties Office buildings
2016
2015
Source: Akershus Eiendom
8.00 % 7.50 % 7.00 % 6.50 % 6.00 %
The curve indicates the 10-year government bond rate and the 10-year SWAP rate. The triangles represent time and sales yield for large Oslo office transactions since Jan 2002.
4.00 %
Our prime yield estimate is now 4.0 %.
3.00 %
5.50 % 5.00 % 4.50 %
3.50 %
2.50 % 2.00 % 1.50 %
Transaction Yield 10Y SWAP 10Y Gov. Bond
Source: Akershus Eiendom
Jul 15
Jan 16
Jan 15
Jul 14
Jan 14
Jul 13
Jan 13
Jul 12
Jul 11
Jan 12
Jan 11
Jul 10
Jul 09
Jan 10
Jul 08
Jan 09
Jan 08
Jul 07
Jan 07
Jul 06
Jan 06
Jul 05
Jul 04
Jan 05
Jul 03
Jan 04
Jul 02
1.50 % Jan 03
Interest Rates and Prime Transaction Yields 2002â&#x20AC;&#x201C;2016
Jan 02
23
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
0
The Investment Market
24
33
Sellers and Buyers of Commercial Property 2014–2015
1% 13% 5% 3%
2% 2% 4% 37%
2015
22% 5%
43%
18%
2014
15%
2% 1% 4%
3% 5% 8% 2%
27%
11%
15% 4% 5%
19%
20%
3% 3%
1%
11%
4%
3% 5%
4% 3%
36% 32%
Sellers
Property companies Listed property funds Government Closed-end funds Insurance/Pension funds
25
Oslo Office Transactions
Buyers
Property funds Foreign investors Private investors Owner occupier Remaining
Source: Akershus Eiendom
Property/location Floor Price NOK Seller Buyer space m² million Dronning Eufemias gate 30 (Midtbygget) 48 000 3 900 DNB Livsforsikring Meteva AS (Trond Mohn) Fornebuporten 67 000 3 200 Aker a Pareto Oslo City (Office) 40 250 1 700 DNB Livforsikring Entra ASA Sjølystparken 45 000 1 100 DNB Livforsikring Fram Eiendom Hieronymus Heyerdahls gate 1 13 700 920 Fam. Bendixen CBRE Investors 82% of Gaustadalleen 21 30 000 655 Lilium Fastigheter Lerka Eiendom Akersveien 26 16 700 Pareto n.a. Sommerogata 1, Inkognitogata 37 22 250 Höegh Eiendom Stordalen, Aspelin Ramm Drammensveien 131 12 600 666 Berner Gruppen NRP Rådhuspassasjen 10 100 605 Eiendomsspar Nordea Liv Munkedamsveien 62 6 600 560 Ragde Eiendom Deka Immobilien Nydalen Allé 35 15 700 505 City Finansiering NRP Karl Johans gate 45 5 250 500 Landkreditt Bank Hines (Bayerische Versorgungskammer) Sjømannsskolen 7 000 400 Avantor Pareto Forskningsparken Hus 5 12 500 Industrifinans Arctic Securities Rosenbergveien 15 9 400 Pareto Arctic Securities 60 % of Gaustadalleen 6,7,8 9 600 265 NIVA, NIBR, NILU, NRP Stiftelsen Ciens Fagsenter
Regional Property Markets
34
Regional Property Markets
bergen Total transaction volume for 2015 ended at nok 7 billion, which is all-time high. The 2015 volume is more than twice as high as the volume for 2014. The volume for 2016 is estimated at nok 3.5 to 4 billion which is more normal. Prime yield for the best objects are seen in the area 4.9 – 5.8 %, while “normal” property experience yields up to 7 %. Office vacancy stands at approximately 9.8 %, and is expected to continue to increase going forward due to the economic situation in the region. Rent levels for new buildings located in Bergen cbd are about 2,450 per m² per year. Good and large premises located in the cbd still see high demand, and rent levels for these premises are expected to remain stable going forward. The high vacancy in the fringe areas will put further pressure on the rental level.
trondheim The final transaction volume for 2015 ended at nok 6.3 billion, including portfolio transactions. The high transaction activity in 2015 is expected to continue into 2016. Prime yield is stable at 5.25 %, while “normal” yields are in the 6.25 – 7.25 % range. Office vacancy is increasing and stands at 9.3 % as of January 2016. Office vacancy increased by approximately 2.2 %-points during 2015. The increase has mainly occurred in the fringe areas, while the cbd area remains relatively stable. Office rent levels in Trondheim are stable at nok 1,000 – 2,000 per m² per year. However, rental levels are expected to slightly decline going forward, especially in the fringe areas. About 15,000 m² of new office space is expected to enter the market during 2016. As of today, about 35,000 m² is confirmed for 2017.
stavanger The total transaction volume for 2015 ended at slightly below nok 7 billion, and foreign capital was the key investor in the largest transactions. The high activity is expected to continue in 2016. Attractive properties with solid tenants and long lease duration have experienced lower yield levels. The yield development for other properties have remained stable during 2015 or experienced a slight increase, depending on risk related to the lease contract. Office vacancy has, as expected, increased, from 9.7 % in May 2015 to 10.1 % in January 2016. The vacancy rate is highest in areas dominated by oil-related businesses. As a result of the high vacancy level in the region, rent levels for office space have continued to decrease. Construction of new office buildings in the region is now at a low level, and is expected to stay low for the coming two to three years.
Regional Property Markets
26
36
Year-End Office Rents 2006–2015
Bergen Trondheim Stavanger - CBD Stavanger - Oil Kristiansand Tromsø
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1 225 1 400 1 550 1 475 1 475 1 475 1 475 1 475 1475 1505 1 350 1 650 1 650 1 600 1 600 1 650 1 700 1 700 1750 1654 1 500 1 650 1 700 1 600 1 600 1 700 1 900 1 950 2000 1894 1 200 1 350 1 400 1 300 1 300 1 350 1 450 1 525 1450 1271 1 350 1 525 1 550 1 425 1 400 1 400 1 375 1 400 1400 1400 1 000 1 300 1 300 1 300 1 450 1 450 1 500 1 675 1650 1770
Source: Dagens Næringsliv
NOK/m2/year
Regional Office Rents 1989–2015
2 000
Nominal NOK
1 600 1 400 1 200 1 000 800 600 400 200
Bergen Trondheim Stavanger - CBD
Stavanger - Oil (Forus) Kristiansand Tromsø
Source: Dagens Næringsliv
2015 H2
2013 H2
2014 H2
1201 H1
2012 H1
2010 H1
2009 H1
2007 H1
2008 H1
2006 H1
2005 H1
2003 H1
2004 H1
2001 H1
2002 H1
1999 H1
2000 H1
1997 H1
1998 H1
1996 H1
1994 H1
1995 H1
1993 H1
1991 H1
1992 H1
0 1989 H1
As can be seen from the graph, cities most affected by the surge in oil exploration are the ones seeing the strongest rental growth.
1 800
1990 H1
27
Regional Property Markets
37
Office rent, NOK per m2 28
Office Rents February 2016 The columns show lower and higher rents for different areas within the three cities.
2 800
Bergen
2 600
Trondheim
Stavanger
2 400 2 200 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200
Best rent levels Lower rent levels
Tananger
Forus
Sources: Eiendomsmegler1 Midt-Norge Eiendomsmegler1 Rogaland Kyte Næringsmegling
12%
10%
8%
6%
4%
2%
16 Jan
15 Aug
15 Jan
14 Sept
14 jan
13 Sept
13 Jan
12 Aug
12 Jan
11 Jan
11 Aug
10 Jan
10 Aug
09 Jan
09 Aug
08 Aug
08 Jan
07 Jan
07 Aug
06 Feb
Bergen Trondheim Stavanger
06 Sept
05 Jan
05 Sept
0% 03 Oct
Regional Office Vacancy 2003–2016
04 Feb
29
CBD
South
East
Fringe CBD
CBD
Sandsli
Fyllingsdalen
Fringe CBD
CBD
0
Sources: Eiendomsmegler1 Midt-Norge Eiendomsmegler1 Rogaland Kyte Næringsmegling
Regional Property Markets
30
38
Leasing Property / location Floor space m² Rent / m2 Tenant Owner Trondheim Brattørkaia 16 8 000 n.a. BI Trondheim Entra Maskinistgata 1 5 000 n.a. Rambøll Dora AS Bergen Kanalveien 107 4 800 n.a. Siemens AS Rasmussen Eiendom AS Nygårdsgaten 112 og 114 9 500 n.a. UNI Research Odfjell Eiendom AS Kronstadparken 1 200 n.a. Westfal Larsen AS Bara Eiendom AS n.a. Bergen Kommune MNG Holding AS Kaigaten 4 7 000 Stavanger Bussanlegg 30 000 n.a. Kolumbus Unik Teminal AS 2020 Park Forus 6 500 n.a. Various tenants Park 2020 Mediagården 5 000 n.a. DFØ and Regus Union
31
Sales Property / location Floor space m² Price Buyer Seller Trondheim NOK million Krambukvartalet ~223 Svanen Eiendom KLP Trondheimsporten 24 000 680 Entra Prora Statoil Rotvoll 900 TRD Campus Statoil Bergen Solheimsviken 43 400 1 500 Storebrand GC Rieber Framo Sjølivet, Askøy 23 700 1 000 Lilium Fastigheter et. al Wimoh AS Strandgaten 1 2 730 150 Bergen Hotel Gruppen AS Bara Eiendom AS Veiten 3 (50%) 6 200 45 Odfjell Eiendom and Haugland Gruppen Bergen Næringsråd Kong Oscars gate 29 1 940 50 Calmar Eiendom 1 AS AS Smith-Sivertsen Eiendom Kokstadvegen 23B 25 000 570 MTB Gruppen AS Ferd Eiendom AS Strandgaten 7 1 800 60 Gjølanger Bruk AS M T Eiendom AS Conrad Mohrsveg 29 8 000 190 Odfjell Eiendom et. al Odfjell SE Oasen bydelssenter 40 000 1 200 Citycon Sektor Gruppen Stavanger Jærhagen, Klepp 31 930 250 Coop Klepp AS Aberdeen Lagårdsveien 78-80 19 000 190 Castellar Paradis Investering Statoil HQ Forus, Forus 100 000 2 600 Colony capital Statoil Asa Wintershall - Gullfaks 17 900 700 Wintershall Hinna Park DNV Bjergsted - Centrica 10 360 280 90 North Real Estate Partners DNV Statens Hus 20 500 ~700 NRP Stavanger Kommune
Regional Property Markets
39
Regional Property Markets
40
Regional Property Markets
32
41
New Building / Rehabilitation Property / location Floor space m² Completion Developer Tenant Trondheim Trapphuset 4 500 2016 ROM Eiendom n.a. Abels Hus 15 000 2017 KLP n.a. Brattørkaia 16 8 350 2018 Entra BI Norwegian Business School Bergen Hotell Zander K 7 960 2017 Friele/Smørås Smørås Damsgårdsveien 134 9 900 2017 Frydenbø n.a. Kanalveien 7 7 500 2017 Rasmussen Eiendom Siemens Comfort Hotel Bergen Airport 20 000 2017 Avinor Choice Scandic Flesland Airport 23 650 2017 West Coast Invest Scandic Stavanger Wintershall 17 900 2016 Hinna Park AS Wintershall Sandnes Sparebank 5 500 2016 Kruse Smith Eiendom Sandnes Sparebank
International Office Markets
42
International Office Markets
nordic office markets The Nordic property market has continued its healthy development since our last report. We have seen record-high transaction volumes in several markets, fueled by low interest rates and low returns in other asset classes. The demand has been particularly high for modern office buildings in prime locations, putting additional downward pressure on yields in many submarkets. The activity in the Stockholm property market has been very strong during 2015. A rising demand for office space has led to a record low vacancy rate of 7.1 %, down 1.9 % since our last report or 2 % on an annual basis. Prime rents have increased in three of Stockholm’s submarkets, with the largest increase in the cbd from 4,500 sek per m² to 5,200 sek per m², equivalent to a 16 % increase. The increase is due to high demand for office space, low volume of new supply and low vacancy rates. Take up level of new office space during H2 2015 was 274,000 m² an increase of 15 % since H1. Overall 61,000 m² of new office space entered the market
during H2 2015 and 109,000 was completed during the whole year. Yields were revised downwards for all submarkets and prime yield currently stands at 3.75 % in the cbd, while the transaction volume in H2 amounted to 30.6 bsek. The vacancy rate in Copenhagen has remained stable since our last report, increasing by 1 %-point to 10.2 %, while vacancy rate in the cbd increased from 7.2 % to 8.1 %. This is due to the supply of new office space, and most of the vacancy is confined to outdated office stock which has been unable to attract sufficient demand. In total, approximately 150,000 m² of new office space entered the market in 2015, 23 % of which was located in the cbd. Prime rent in Copenhagen has increased during H2 2015 from 1,750 dkk per m² to 1,800 dkk per m². This is mainly driven by an increased demand for modern office space in the cbd. The investment market has continued to perform well and the prime yield has decreased by 50 bps since our last report to 4.25 %, and is expected to hit 4 % during 2016.
The vacancy rate in Helsinki continued to increase slightly during H2 2015 and now stands at 11.4 % up from 11.3 % in our last report. However, several significant relocations have been announced and demand is believed to pick up going forward. During 2015, 85,000 m² of new office space entered the market, while the forecast for 2016 is only 50,000 m². Rental growth has been non-existing, leaving prime rent at 306 eur per m². As a result, the prime yield has decreased by 25 bps to 4.75 % since our last report. During H2, Helsinki has recorded an office transaction volume of approximately 500 eur million, about two-thirds of which has involved cross-border investors. european office markets The Jones Lang LaSalle “Office Clock” describes the European market situation by a quarterly plot for the movement in prime rents for major cities. The clock illustrates both direction and speed of change for the different cities over 6 months. The rental growth in Stockholm is still slowing down, the rent growth in Copenhagen has slowed down somewhat since our last report, while rents in Helsinki are still bottoming out.
International Office Markets
33
43
Jones Lang LaSalle Office Property Clock Main European Cities Q4, 2015 Lyon, Oslo Cologne Frankfurt Hamburg, Malmö Stuttgart Munich
Rental Growth Slowing
Rents Falling
Rental Growth Accelerating
Rents Bottoming Out
London WE Stockholm Copenhagen
Manchester Edinburgh, Göteberg Amsterdam, Barcelona, Madrid Budapest, Milan Lisbon, Paris CBD Brussels
Moscow Warsaw Geneva, St Petersburg Kiev Athens, Bucharest, Dusseldorf, Helsinki, Istanbul, Prague, Rome, Zurich Source: Jones Lang LaSalle Akershus Eiendom
34
Key Information Nordic Cities Q4, 2015 Key Data Oslo Stockholm Copenhagen Helsinki Gothenburg Inflation 2015 (%) 2.3 0.1 0.5 -0.2 0.1 Prime Yield (%) (CBD) 4.0 3.75 4.25 4.75 4.5 Yield Grade B properties (%) (CBD) 5.25-5.75 6.00-6.50 5.75-6.50 6.50-7.00 6.00-6.50 Prime Rent (Local Currency / Euro / m²) (CBD) 4,200 / 436 5,200 / 550 1,800 / 241 306 2,800 / 296 B grade Rent (Local Currency / Euro / m²) (CBD) 2,500 / 260 2,300-3,400 / 1,000-1,100 / 186-210 1,800-2,300 / 243-359 134-147 190-243 Office Space (m2) (Total) 8.6 mil 11.7 mil 11.8 mil 8.8 mil 3.3 mil Completions - 2015 (m²) (Total) 167,000 108,500 150,000 85,000 68,400 Completions - 2016 (m²) (Total) 103,800 113,700 260,000 50,000 38,000 Vacancy rate (%) (Total) 7.5 7.1 10.2 11.4 6.1
Sources: Jones Lang LaSalle Akershus Eiendom
International Office Markets
44
â&#x201A;Ź/m2/year 35
Nordic Office Rent Development
700
600
500
400
300
200
100
2015
2016
2015
2016
2014
2013
20% 18% 16% 14% 12% 10% 8% 6% 4% 2%
Oslo vacancy rate Helsinki vacancy rate Stockholm vacancy rate Copenhagen vacancy rate
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0% 1997
Nordic Vacancy Development
2012
Source: Jones Lang LaSalle Akershus Eiendom
Oslo prime rent Helsinki prime rent Stockholm prime rent Copenhagen prime rent
36
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
0
Source: Jones Lang LaSalle Akershus Eiendom
International Office Markets
37
Nordic Yield Development
45
7.50%
7.00%
6.50%
6.00%
5.50%
5.00%
4.50%
2015
2016 2016
2014
2013
2012
2015
Oslo prime yield Helsinki prime yield Stockholm prime yield Copenhagen prime yield
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
4.00%
Source: Jones Lang LaSalle Akershus Eiendom
â&#x201A;Ź/m2
Prime Value Index
16 000
Prime rent/prime yield
14 000 12 000 10 000 8000 6000 4000 2000
Oslo value Helsinki value Stockholm value Copenhagen value
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0 1997
38
Source: Jones Lang LaSalle Akershus Eiendom
The Retail Market
46
The Retail Market
status Retail sales volume (excluding motor vehicles) is up by 0.5 % year-on year. However, the underlying trend is weak. Statistics Norway expect to see a moderate growth in consumption spending until the end of 2016, thereafter a slightly higher growth rate, based on expectations of improved general economic conditions from 2017 onwards. The consumer confidence index (cci) has increased two months in a row. However, the index remains at low levels. the shopping centre market Norwegian shopping centres have experienced a healthy development in recent years. The 50 largest shopping centres had a total turnover of nok 73.6 billion in 2015, an increase of 5.3 % compared to 2014. According to a report published by TØI, Institute of Transport Economics, the city centres lose market share, while shopping centres located outside the city centre keep their market share. Larger retail parks, on the other hand, are gaining market share. E-commerce still accounts for a small share of trade, but is steadily growing.
the oslo high street market The high-street retail market in Oslo has experienced a significant rental growth over the past seven years. However, due to the current economic situation, the rent level is now experiencing some softening. However, we believe this is only short-term. The retail real estate market in general is at the beginning of being professionalised, and has great potential for the coming decade where many international retailers will expand to the Norwegian market, and Oslo in particular. For the time being, luxury retailers are dominating the market in Nedre Slottsgate, the street with the highest rental growth over the last 12 months. Going forward, it is expected that contemporary and mass-market brands will follow. Due to limited supply of quality space, the prime area is expected to expand. the retail investment market The Norwegian retail transaction market was very active in 2015 and retail transactions amounted to approximately nok 35 million which is close to 30 % of the total
transaction volume in Norway. Three large portfolio transactions accounted for almost 65 % of the total retail volume. The largest transaction in 2015 was Citycon’s acquisition of Sektor Gruppen and its portfolio of more than 20 shopping centres for nok 12.3 billion. Majority owner Schage Eiendom acquired the minority shares holdings in Salto Eiendom, at EV nok 5 billion. The largest high-street transaction was the acquisition by Meyer Bergman of 11 prime properties located in Oslo’s prime shopping district from Søylen Eiendom (65 %) and Madison International (35 %) for nok 5.3 billion. In addition to the large portfolio transactions, Steen & Strøm (Klépierre) acquired the shopping center part of Oslo City, and Landkreditt sold Karl Johans gate 45, a high-street office/retail property, to USbased Hines on behalf of Germany’s largest pension scheme.
The Retail Market
47
Retail volume index
Retail year-on-year growth
140
10%
130
7,5%
Season adjusted volume index, 2010=100
120
5%
Retail sales has decreased lately and is down 0.5% year-on-year.
110
2,5%
100
0%
Retail year-on-year growth Retail volume index
Jul 15
Jan 16
Jul 14
Jan 15
Jan 14
Jul 13
Jul 12
Jan 13
Jul 11
Jan 12
Jan 11
Jul 10
Jan 10
Jul 09
Jul 08
Jan 09
Jul 07
Jan 08
-5% Jul 06
80 Jan 07
-2,5%
Jan 06
90
Jul 05
Norwegian Retail Volume Index 2005–2016
Jan 05
39
Source: Statistics Norway
m2/year
Annual 4 quarter moving average.
800 000
Permitted retail construction have picked up in both Oslo and Norway as a whole.
600 000
400 000
200 000
Permitted Norway Started Norway Completed Norway
Permitted Greater Oslo Started Greater Oslo Completed Greater Oslo
Source: Statistics Norway
15 Q1
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
0 02 Q1
Retail Construction Q1 2001–Q4 2015
1 000 000
01 Q1
40
The Retail Market
48
m2/year
Prime rent for unit shops Oslo, Karl Johans gate 2000-2016
30 000
25 000
20 000
15 000
10 000
5 000
Source: Statistics Norway
16 Q1
15 Q1
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
0 02 Q1
Prime rents for unit shops has decreased from 25,000 to 23,500 per m² due to the economic situation.
01 Q1
41
The Retail Market
42
43
49
Retail rents in the Bogstadveien / Hegdehaugsveien
20 000 + 16-20 000 12-16 000 8-12 000
5-8 000 3-5 000 -3 000
Source: Akershus Eiendom
20 000 + 16-20 000 12-16 000 8-12 000
5-8 000 3-5 000 -3 000
Source: Akershus Eiendom
Retail rents in the Karl Johans gate area
The Hotel Market
50
The Hotel Market
hotel occupancy and room rates The Norwegian hotel market had a strong year in 2015. Total revenue ended at nok 13.2 billion, which is a 5.3 % increase from 2014 and an all-time high. Revenue per available room (RevPAR) was nok 482, which is slightly up from 2008 when the last peak was recorded. The number of guest nights rose to 21.7 million. The main driver of the growth was increased leisure travel. Both Norwegian and foreign guest nights increased, by respectively 4.2 % and 11.1 %. A major contributor to this increase is the continued depreciation of the Norwegian krone, and this is expected to drive further growth in 2016. Work-related hotel revenue for western and southern Norway, however, has followed the downturn in the oil price. The Oslo hotel market experienced a 16 % improvement in accommodation income compared to 2014, with revenues reaching nok 2.9 billion. The guest night volume in Oslo was 4.4 million, a 9.5 % increase from 2014. The average occupancy rate was 69.3 %, a 2.3 percentage point increase since 2014, while the average price per room grew 6.9 % to 956 nok. As a result, the 2015 RevPAR
stands at 663 nok, up 10.6 % from 2014.
230 room conference hotel in Drammen.
hotel construction As seen in graph 46, there has been an upswing in permitted and started hotel construction during the last year, both in Oslo and Norway. However, completed floor space dropped substantially.
• Olav Thon Gruppen is planning a 325room hotel at Storo in Oslo. The plan is to open the doors Q1 2019.
New hotel projects: • Stavanger Scandic Congress will open 350 rooms and conference facilities in 2017. At Sola Airport Arena (Stavanger) a 12,000 m² hotel with conference facilities for 600 people will open. Construction start is yet to be decided. • Scandic Flesland Airport and Comfort Hotel Bergen Airport will provide 300 rooms each to the Bergen market during H1 2017. In addition, Hotel Zander K (250 rooms) and Bergen Børs (130 rooms) are expected to open in 2017. • In January 2018, a new Scandic hotel with 220 rooms will open in Lillestrøm. • In 2018/2019, Rom Eiendom will open a
Hotel transactions H2 2015 • Midstar acquired Hotel Grand Olav in Trondheim from Wenaasgruppen. The hotel has 106 rooms and the price was set to approx. nok 140 million. • O le G. Ottersland AS acquired Radisson Blu Airport Hotel from Avinor. The price was nok 1,580 million, equivalent to more than nok 3.1 million per guest room in the conference hotel. The yield is reported to be just below 4.7 %. • A nker Properties AS (Stordalen) and Varner Invest AS (the Varner family) acquired Clarion Hotel Royal Christiania for around nok 1,800 million. The price includes substantial development potential, which is already approved by the municipality of Oslo. The yield is reportedly around 4.75 %.
The Hotel Market
51
No. of guest nights per month in thousands (1 000) 44
Volume of Guest Nights in Norwegian Hotels 2003–2016 The graph shows the split between the volume of foreign and domestic guest nights in all hotels of Norway. Figures are seasonally adjusted.
1 400
1 200
1 000
800
600
400
200
15 Jan
16 Jan
15 Jan
16 Jan
14 Jan
13 Jan
12 Jan
11 Jan
10 Jan
09 Jan
08 Jan
07 Jan
06 Jan
05 Jan
04 Jan
03 Jan
0
Source: Statistics Norway
Domestic guests Foreign guests
RevPAR
Real RevPAR 2003–2016
1 000 900 800 700 600 500 400 300 200 100
Oslo Norway
14 Jan
13 Jan
12 Jan
11 Jan
10 Jan
09 Jan
08 Jan
07 Jan
06 Jan
05 Jan
0 04 Jan
The graph shows the development in real RevPAR in today's values. All figures are seasonally adjusted.
03 Jan
45
Source: Statistics Norway
The Hotel Market
52
m2/year
Hotel Construction 2001â&#x20AC;&#x201C;2016
250 000
Completed hotel floor space dropped for Norway as a whole, 200 000 and was at the lowest levels since 2005 for the Greater Oslo region. Permitted and started 150 000 floors space increased in both Oslo and Norway. 100 000 50 000
Permitted Norway Started Norway Completed Norway
Permitted Greater Oslo Started Greater Oslo Completed Oslo
Source: Statistics Norway
16 Q1
15 Q1
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
02 Q1
0 01 Q1
46
The Logistics Market
54
The Logistics Market
Since our previous report published in October 2015, we have not changed our view on Greater Oslo logistics rent levels. The different rent levels can be seen in the map, where prime rent still stands at 1,200 nok/ m² per year. Observed rent levels are high from Berger to Vinterbro, as these hubs are very popular. Their closeness to effective intersections with the main highway E6, short driving distance to Oslo and the availability of vacant land plots make these hubs a good alternative to the relatively fully developed area around the Alnabru national cross dock terminal (Alna/Nyland). Vacancy in the greater Oslo region measured as floor space available now or within 3 months, stands at 4 % as of December 2015, up 0.5 %-points since our previous report. Small changes within each region have been witnessed, with the largest increase in the northern region. This region has witness an increase of 0.5 % as a result of a high in-
crease in vacancy in the Lørenskog hub. The overall vacancy level in the northern region now stands at 3 %. The vacancy level for the other regions is unchanged and is respectively 2 % within the Oslo City limits, 7 % for the greater Oslo South region and 7.5 % for the greater Oslo West region. The transaction activity has been high for 2015 and the registered number of deals were at high levels. The transaction volume for 2015 has included several small and medium-sized deals, and has also been boosted by larger industrial transactions such as the sale of Raufoss Industripark, Herøy Industripark, the supplybase at Mongstad, a portfolio with 8 industrial properties sold from Akastor to Aker ASA, and the sale of the Ulven area in Oslo. The latter is a warehouse area with future plans for conversion into residential and office. Based on recent market activity, we have not changed our estimate for prime yield which
still stands at 5.75 % for a 10-year investment grade property, yet we observe that there is a downwards pressure on the prime yield level. The yield estimate is relevant for properties within the prime and secondary areas, from Berger to Vinterbro. The yield estimate for investment grade properties with substantially longer leases, within the same geographical region, is slightly lower.
The Logistics Market
47
55
Rent Levels March 2016
Gardemoen
Kløfta
Berger
Lillestrøm Groruddalen
Other Oslo Oslo West Other
Regnbuen / Berghagan Ski
Vestby
Rent NOK/m2 for Normal Standard and Prime Standard 1 000–1 200 800–1 000 700–800 –750
Source: Akershus Eiendom
The Logistics Market
56
NOK/m2/year 48
Prime Rent for Warehouse/Logistics
1 400
1 200
Greater Oslo region. 1 000 Prime rent, seen in the central parts of Groruddalen close to the Alnabru rail terminal, is still NOK 1 200 per m².
800
600
400
200
Source: Akershus Eiendom
m2/year
1 200 000 1 000 000 800 000 600 000 400 000 200 000
Permitted Norway Started Norway Completed Norway
Permitted Greater Oslo Started Greater Oslo Completed Greater Oslo
Source: Statistics Norway
2015 Q1
2014 Q1
2013 Q1
2012 Q1
2011 Q1
2010 Q1
2009 Q1
2008 Q1
2007 Q1
2006 Q1
2005 Q1
0 2004 Q1
A little upswing in started projects in the Greater Oslo Region, whilst started and completed projects in Norway continues to increase.
1 400 000
2003 Q1
Annualized 4 quarter moving average.
1 600 000
2002 Q1
Logistics Construction 2001–2015
1 800 000
2001 Q1
49
16 Q1
15 Q1
14 Q1
13 Q1
12 Q1
11 Q1
10 Q1
09 Q1
08 Q1
07 Q1
06 Q1
05 Q1
04 Q1
03 Q1
02 Q1
01 Q1
0
The Residential Market
58
The Residential Market
residential prices According to Real Estate Norway, the residential prices have gone up after a slightly negative development during the Autumn of 2015. Although 2015 in total saw a 7.2 % increase in residential prices, most of this growth came during the first seven months. House prices as of January 2016 are up 2.8 % compared to January of 2015, signalling a slower growth. All the largest cities saw an increase in housing prices during the first month of 2016, with Trondheim leading the way with a 2.9 % increase. Stavanger saw the least growth at 2 %. For 2015 as whole, Oslo and Tromsø are on top with 11 % increase in prices. While Oslo greatly improved on the 1 % growth in 2014, Tromsø saw the same growth for the second consecutive year. Bergen had a 9 % growth in housing prices in 2015, Trondheim had a 7 % increase, and Kristiansand a 6 % increase. Stavanger prices decreased by 1 %, which is a slight improvement from the 2 % drop experienced in 2014.
Norges Bank lowered the key policy rate by 0.25 percentage points twice in 2015, first in June before lowering the key policy rate to 0.75 % in September. Norges Bank has announced further reductions in 2016. The low mortgage rates might put more upward pressure on housing prices going forward. However, a weaker Norwegian economy, with increasing unemployment, might reduce some of this pressure. Furthermore, the banks have, under pressure from the Norwegian FSA, tightened their credit policies. residential construction After a flat development during the first 6 months of 2015, the number of residential units under construction increased by 4.2 % during the second half of the year. The residential construction figures remain at solid levels in a historical perspective. The volume of completed residential units has remained relatively stable since the beginning of 2014. As for the transaction volume, January 2016 had a turnover of 5,606 units sold, a
13 % decrease from January 2015. Apartment units were more than 55 % of the sales volume. Aggregate 2015 figures show that 88,283 dwellings were sold (an all-time high the last 10 years), of which 55 % were apartments. Sales of new projects in 2015 reached 16,780 new units, which is an increase of 4,800 from 2014. The sales rates (sold units as a percentage of total units offered) picked up during the second half of 2015 after dipping in July and August. Although new sales are now at solid volumes at a national level, it is worth noting that there are large regional differences. The eastern part of Norway is experiencing record sales levels, while the regions in the west and south are experiencing slower sales. This is particularly true for the Stavanger area. Moving forward, it is likely that the regional differences will increase further, with cities and regions exposed to the oil and gas sector expecting further layoffs, and thus slower residential sales.
The Residential Market
59
% annual price change
Average sales price, NOK/m2 50
Residential Prices 2004–2016
40 000
40%
Nominal values
30 000
30%
Residential prices increased by an annual 5,2 % from January 2015 to January 2016.
20 000
20%
10 000
10%
0%
0
Year-on-year change, by month, % Average residential price NOK/m²
Jul 15
Jan 16
Jan 15
Jul 14
Jul 13
Jan 14
Jul 12
Jan 13
Jul 11
Jan 12
Jan 11
Jul 10
Jul 09
Jan 10
Jul 08
Jan 09
Jul 07
Jan 08
Jul 06
Jan 07
Jul 05
Jan 06
Jul 04
Jan 05
-10% Jan 04
-10 000
Sources: Econ Pöyry Finn.no Norwegian Assosiation of Real Estate Agents (NEF)
Volume of residential units
40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000
Residential units under construction Completed residential units, last 12 months
Source: Statistics Norway
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2001
2002
2000
1999
1998
1997
0 1996
Units under construction increased 4.2 % during the second half of the year after a flat development during the first half. Completed dwellings fell approximately 1.9 % during the second half of the year, resulting in a 0.7 % increase for the full year.
45 000
1995
Residential Construction in Norway 1994–2016
50 000
1994
51
Definitions
61
Definitions
Area definitions
BTA BRA P-rom BYA
Gross area Usable area Living area â&#x20AC;&#x201C; residential Foot print of the building
Abbreviations
NAV CBD CPI NOK SSB
Norwegian Labour and Welfare Agency Central Business District Consumer Price Index Norwegian Krone Norwegian National Bureau of Statistics
Depreciation Document tax (stamp duty) Property tax
Office buildings 2% Warehouse/industrial 4% Shopping centres 2% Hotels 4% Investments 10% 2.5% of transaction value Depends on the county, many currently have a zero rate.
Taxes and depreciation
Akershus Eiendom
62
Akershus Eiendom AS
Akershus Eiendom AS is an independent property advisor focusing on commercial property; offices, warehouse facilities, shops/shopping centres, hotels, land, and related types of property. Akershus Eiendom advises its clients on sales, leasing, development, research, valuations and other areas of commercial property business. Akershus Eiendom has during the past five years handled sales transactions for properties of a total value of more than NOK 30 billion, and has handled leasing of more than 700 000 m² of office space.
Manager
Transactions
Per Kumle
Petter Nylend Roar Sandnes Jørgen Haga Christian Valdem Rune Unsgård Knut Berget Jacob A. L'Orsa Cecilie Ragner Marte Overå Sofia Hariz
Leasing
Ole Christian Iversen Rune Arvesen Anders Heffermehl Ole-Jacob Leirskar Stig Basing Jonas Myhre Remi Olsen Morten Buøen Jørgen Anker-Rasch Lise Kaupang
Tenant representation
Vigdis Sundvoll Lars Føyen Kinserdal
Akershus Eiendom is associated with Kyte Næringsmegling in Bergen and JLL internationally. Research/valuation
Administration Ragnar Eggen Erik André Bratt Karin Manengen Birgitte Heskestad Ellingsen Andreas Egset Tor-Øyvind Skjelvik Board of directors William Nevstad Lasse Bjørndahl Adam Ingwall
Brith Hoel Vigdis Sundvoll Hilde Bang
Roar Sandnes Geir Saastad Jørgen Haga Ragnar Eggen Petter Nylend Per Kumle Ole Christian Iversen
Akershus Eiendom
This report is produced in cooperation with
63
Haakon VII’s gate 5 P.O. Box 1739 Vika NO-0121 Oslo Reg.no. 963.877.722
T: +47 22 41 48 00 F: +47 22 41 48 06 W: akershuseiendom.no
Lästmakargatan 20 P.O. Box 1147 SE-111 81 Stockholm
T: +46 8 453 50 00 F: +46 8 453 51 10 W: jll.com
Bankgaten 8 P.O. Box 7999 NO-5020 Bergen
T: +47 55 55 30 50 F: +47 55 55 33 54 W: kyte.no
Søndre gate 4 P.O. Box 433 Sentrum NO-7404 Trondheim
T: +47 73 89 06 00 F: +47 73 89 06 50 W: eiendomsmegler1.no
Petroleumsveien 6 P.O. Box 114 NO-4065 Stavanger
T: +47 51 95 65 75 F: +47 51 44 48 83 W: eiendomsmegler1.no
Photography: Sveinung BrĂĽthen Design: Anti