Employment in 2017 shows the strongest growth rate of the last ten years and the unemployment rate is at its lowest level since 2010. The number of bankruptcies is falling and the investment volume of companies is increasing. The impact of the growing economy is also visible in the Office market. The prime yields at primary office locations in The Netherlands show a declining trend, and vacancy rates is decreasing in most areas.
In Den Bosch, Arnhem, Groningen, Eindhoven, Utrecht and Amsterdam, yields fell by 0.5% or more in the previous quarter. The decline in Den Bosch, from 7.5% to 6.75%, was the largest absolute drop in the market. In Amsterdam, the yield dropped to 3.5%. This was the biggest relative decline. There was a slight decrease of 0.25% in Schiphol and Rotterdam, and the yield in The Hague remained 5.75%.
The impact of the growing economy on prime rents is less clear. Rents in Amsterdam and Utrecht increased further in the second quarter. This trend is expected to continue throughout the next six months. In cities like The Hague, Rotterdam, Eindhoven, Groningen and Arnhem, prime rents are stable. No change is expected here in the coming period.