Office market report Brussels

Pulse Spring 2014

The Belgian Logistics Market - Quarterly Update

On Point 3rd quarter 2015

Occupiers activity is substantially below levels of the last Investment volume year-to-date surged to above €3.3 bn,
years. Large size transactions are however expected to be already more than the full year 2014 due to mega shopping
closed in the near term. center deals.

Vacancy falls further to 9.6% and will trend to 9% in the
short term.
Prime rents unchanged so far at €275 / sq.m. / year, but
small size transactions were closed above that level.
Prime yields compress for every type of asset.
HOT IN BRUSSELS: New public transport lines could
reboot the office market

Source all charts : JLL Research 

 - 2 - On Point • Brussels Office Market • Q3 2015 www.jll.be

At a glance
226,000 sq.m. taken-up in 9M 2015, 27% lower than a year ago.
Large size deals expected in Q4 may reboot the occupier market.

9.6% vacancy, the lowest since Q4 2008, trending to 9%.

82,600 sq.m. speculative completions expected in the next 18 months.

€ € 275 / sq.m. / year, prime rent is unchanged so far,

but small size transactions were signed at € 300.

821 Mio, invested in office properties in Brussels in 9M 2015.

Key statistics – Q3 2015

2012 2013 2014 Q3 2015
Take-up (cumulative) (000 sq. m.) 423 331 419 226
Take-up (cumulative) (No of Deals) 383 355 396 268
Stock (Mio sq. m.) 13.1 13.3 13.2 13.0
Completions (cumulative) (000 sq. m.) 85 223 88 27
Vacancy (000 sq. m.) 1,360 1,351 1,367 1,257
Vacancy Rate (%) 10.4 10.1 10.3 9.6
Prime Rent (€/sq. m./pa) 285 285 275 275
Total Investment Volume in BE (cumula-
2.20 2.23 3.255 3.306
tive) (bn €) (*)
Offices Investment Volume in BE (cumu-
0.85 1.25 2.08 1.038
lative) (bn €) (*)
Prime Yield Band (%) 6.00-6.50 5.80-6.50 5.75-6.50 5.50-6.50

Q4 2015 (**) 2016 (**) 2017 (**)

Future Supply, Speculative (000 sq. m.) 38.4 44.2 51.7
Future Supply, Non Speculative (000 sq. m.) 59.3 253.6 127.3
Total 97.7 266.4 179.0

(*) Investment volume includes investment, owner occupier and redevelopment acquisitions; excludes land sales. Data as of 30/09/2015.
(**) Under construction and projects with permit. Projects with no permit, except if prelet, on 30/09/2015 excluded.

Source all charts : JLL Research 

- 3 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Letting Market
Large size deals expected
TAKE-UP BY BUSINESS SECTOR (SQM)
Q3 is traditionally the quietest quarter of the year Corporates dominate letting activity in H1 2015
due to the holiday period, 2015 is no exception
however two transactions above 10,000 sq.m.
100%
were closed: KPMG prelet 13,000 sq.m. in Codic’s 90%
Passport project on Brussels Airport, next to 80%

Deloitte’s new HQ currently under construction. 70%

KPMG will move from its current headquarters 60%

50%
in the Decentralised in 2018. The second 40%
transaction is the letting to the CPAS / OCMW of 30%

the commune of Schaerbeek of c. 10,000 sq.m. in 20%

10%
the Silver Building along the Boulevard Reyers. 0%
2011 2012 2013 2014 9M 15

As of today, the market is still waiting for Belgian Adm EU International Adm Corporates

the finalisation of additional transactions by

European institutions, of which c. 25,000 sq.m.
for the Commission and c. 20,000 sq.m. for the
European Parliament. For the latter, the demand
includes the temporary relocation of part of the
staff located in the Paul Henri Spaak emblematic
building.

Concerning local administrations, there is also an

important pipeline of transactions with uncertain
timing. The Municipality of Brussels is looking
for c. 30,000 sq.m. in the Pentagon, the Police of
Brussels is looking for 30,000 sq.m. as well, and
according to media the Federal Administration
of internal affairs may take c. 27,000 sq.m. in
S I LV E R B U I L D I N G - D E C E N T R A L I S E D
Belfius Bank’s former HQ in the Pentagon.
L A N D LO R D : A L L I A N Z
A R C H I T E CT : A S S A R
All in all, take-up in Q3 was 79,655 m², down 5% L E T TO C PA S / O C M W S C H A E R B E E K
on Q2, and up 10% year-on-year (but down 14%
in number of deals!). Year-to-date, take-up is
226,000 m², 27% lower than a year ago. Besides
the European institutions and the Belgian TAKE-UP BY DISTRICT
administrations, the market expects other large More deals outside CBD
size deals from the Corporate and International
administration side. To be continued. 100%
90%
Corporates still lead the market with 77% of the 80%
take-up, followed by Belgian administrations 70%

with 16%, Europe with 5% and International 60%

50%
administrations with 2%.
40%
30%
Location wise, while the CBD generally represent 20%
50-55% of the take-up, as of today this is only 10%
40% due to very few transactions by Belgian 0%
administrations and European institutions, 2011 2012 2013 2014 9M15

which are focused on CBD. Eur District Louise North Pentagon South Decentralised Periphery

Source all charts : JLL Research 

- 4 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Vacancy trending to 9% faster than expected

VACANCY RATE CBD & OUTSIDE CBD
Vacancy rate at record high in the Periphery
There were a few vacant stock additions in the
CBD during the quarter, amongst others the 20%
18%
completion of a mid-size project in the European 16%
district. This was offset by the sale of the Green 14%
Island of KBC (c. 19,000 sq.m.) to Attis in the 12%
10%
North district for a conversion project. The CBD 8%
vacancy rate at the end of Q3 2015 is estimated 6%
at 5.5%, unchanged vs. Q2. Should the three 4%
2%
expected transactions by European institutions

2011

2012

2013

2014

Q3 15
be closed in Q4, as well as the rumoured large
size deal by the Federal Administration of Internal Total BXL Market CBD Outside CBD
Affairs, vacancy would fall below 5% for the first
time since 2002.

Outside the CBD, vacancy declined by 70 bps

quarter-on-quarter to 16.7%. Until recently,
vacancy outside the CBD was dependent on
conversions, the decline in Q3 was however more
linked to letting transactions.

All districts together, vacancy tightened further to

9.6% vs.9.9% in Q2 and 10.2% in Q1. This is a new
7 year low. Provided that the above mentioned
pending deals are closed, we may see a vacancy
rate at 9% by Mid-2016.

Vacancy in new buildings is currently estimated R E G E N T PA R K - P E N TA G O N

at 131,000 sq.m., split into 54 buildings of which L A N D LO R D : C I M M O R E G E N T
24 in the CBD. On a tenant perspective, finding AVA I L A B L E F R O M Q 4 2 0 1 5
> 5,000 sq.m. of high quality and a single tenant
building is very difficult.
COMPLETION AND PIPELINE
Too shy speculative development activity
A majority of non speculative developments
creates a mismatch between supply and
demand 350

300
For now there is limited movement on the
250
speculative development activity side, and
building permits are difficult to obtain not only 200

because of tight urban constraints but also 150

inefficiencies in the municipalities delivering 100
permits. 471,000 sq.m. is currently under
50
construction or renovation, but only 19% is
speculative, covering c. 88,000 sq.m. 73% of 0
2011 2012 2013 2014 9M 15 Q4 15e 2016e 2017e
speculative development is located in the CBD.
Completions Future Compl. Spec. Future Compl. Non Spec.

Source all charts : JLL Research 

- 5 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Speculative completions in Q4 2015 – 2016 are

PRIME FACE RENT BY DISTRICT
concentrated in the European district and the
From € 275 in Leopold to € 165 the Periphery
Pentagon, with for example Mr Marian’s Regent
Park (Pentagon: 7,300 sq.m. in Q4 2015) and 310
AXA’s Belliard 65 (European district: 6,206 sq.m. 290
also scheduled for Q4 2015).
270

In 2016, 54,000 sq.m. will be speculatively 250

completed, of which 32,000 sq.m. in the Pentagon 230

and 11,000 sq.m. in the European district, 210
comprising amongst others the Alhambra at the 190
Brouckère square, two refurbished buildings in
170
the Rue de Namur and Alides’ Oxygen building in
the European district. 150
2011 2012 2013 2014 9M 15

There is a pipeline of more than 250,000 sq.m. in Pent South North Eur Louise Dece Peri
the North district – mainly towers – but none will
be started at risk.

Conclusion: the vacancy rate will inevitably

decline further and the mismatch between
what is demanded by occupiers and what is
offered by the market will remain significant.

Prime rents stabilise, less incentives in CBD

At this stage prime rents are unchanged in

all districts, the last increase was in Q2 in the
North district (from €175 to € 195 / sq.m. /
y). Developers prefer requesting a rent at or
below prime benchmark levels to secure the “ We see rents increasing
occupation of the building, and have a better in the near term”
chance to sell it afterwards at an excellent price Erik Verbruggen
as yields continue to decline. Prime headline rent Head of Office Agency
is therefore unchanged at € 275 / sq.m. / year, Belgium
but we have seen several small size transactions
at € 300 / sq.m. / year in the European district.

Top quartile rents in Brussels as a whole

increased by 0.7% in Q2 to € 203 / sq.m. / year,
but weighted average rents declined by 1.7%
quarter-on-quarter to € 152 / sq.m. / year.

Incentives in the European district and to some

extent the Pentagon are less generous than in
2014 with one to two months per year of lease
for a 6/9 lease term. A year ago, a minimum of 2
months was common.

Source all charts : JLL Research 

- 6 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Hot in Brussels

New public transport lines could reboot the office market

Brussels is the second most congested city in Europe, after London, with 74 hours lost by employees in traffic
per year. The fact that a company car is often considered as a normal reward to employees can partly explain
the wide use of car to go to work, but the underinvestment in public transports is also a factor. Accessibility and
mobility are important criteria of occupiers in their choice of new premises, and are good reasons for tenants to
move to more accessible locations inside or outside Brussels. Areas with weak connections to efficient public
transport and congested road connections tend to show high structural vacancy and some have been converted to
residential as a result. The ongoing projects of new metro, train and tram lines bring solutions. JLL summarises
the main initiatives with completion dates within the next decade and the possible impact on the office market.

1. Schuman-Josaphat tunnel (Q4 2015)

Mid December 2015, this 1.5 km kilometre tunnel between the Schuman multimodal train and metro station at
the core of the European district and Schaerbeek will come into full operation. A new train station is created at
the Schuman station, and the new underground train line will be linked to Brussels Airport in only 13 minutes
instead of 32 minutes currently.

What impact? This express line is an obvious advantage for the main occupiers of the European district but
also the occupiers of Brussels Airport (for example Deloitte and KPMG by the end of the decade) and of the
area surrounding the Bordet train station in Evere (f.i: NATO, Mobistar, Unisys, Record Bank, Electrolux).
The new express train is therefore an excellent commercial argument for the new projects at both ends
of the line. Currently the vacancy rate close to Bordet station is estimated at 7%, and at 12% for the whole
Decentralised North East subdistrict. In our view, the revamped attractivity of this area with the express train
connection may revive occupiers demand and reduce vacancy.

Source all charts : JLL Research 

- 7 - On Point • Brussels Office Market • Q3 2015
2. Metro extension to the North
(2024)
This is the most ambitious project to improve public
transport in Brussels. Until now, the north and the
south of Brussels are linked by tramway lines, with
an underground part between the North Station
and Albert Square in Forest / Vorst (commune in
the South of Brussels). The project is to create an
automated metro line between the existing Albert
station and the Bordet train station in Evere, in the
middle of an important office zone close to NATO and
connected to Brussels Airport by train (read above:
Schuman-Josaphat). 7 new metro stations will be
created and the existing 11 underground tramway
stations will have to be adapted to metro operations.
Timing for completion can reasonably be expected for
the middle of the next decade. Further extension to
the NATO is envisaged.
What impact? In our view, this project is
complementary to the express train line to the
airport. More than half a million square metre
(excluding NATO) is concerned by this new line,
the bulk being around the Bordet station. We do
not believe that the scarce offices along the part
of the line situated between North Station and the
Paix / Vrede station (last before Bordet) will gain
attraction, administrative activity having left this
zone a long time ago.
3. North West: Tramway line 9
(2018-2020)
This new line on dedicated tracks away from cars will
link the multimodal metro station Simonis (crossing
point between metro lines 2/6) and the Heizel sport
and leisure area. Works will start in H1 2016 and
will be developed in two phases until the end of the
decade for the first one, and early next decade for the
second phase (extension to Heizel). This new c. 4km
line will mainly serve residential and commercial
areas of the North West of Brussels, as well as the
UZ Brussel hospital and the leisure / retail / sport
area of the Heizel.
What impact? Since the presence of offices along
the route is marginal, we do not see material impact
on the Brussels office market.
www.jll.be
4. South East: Extension of tramway
line 94 to Roodebeek metro station
This line also mostly on dedicated tracks is the
longest in Brussels (21km), it currently links the
Avenue Louise, an important office location and
part of the CBD, to the Avenue de Tervueren /
Tervurenlaan , through the Chaussée de La Hulpe /
Ter Hulpsesteenweg and the Boulevard du Souverain
/ Vorstlaan. Together with the c. 1.5 km extension, c.
700,000 sq.m. of offices are linked to each other, of
which 13% is vacant.
What impact? Only 50,000 sq.m. offices remains
along the new extension of the line, c. 20,000 sq.m.
has been converted the last five years or will be
converted shortly. We believe the improved public
transport comes too late for the office market.
Conclusion:
The usefulness of large infrastructure works to
extend public transport is proven. In our view, the
impact on the office market of the express train
line between Schuman and Brussels Airport, as
well as the metro extension to the North could be
substantial, and is undoubtedly a solid commercial
argument for the existing and future buildings at
both ends of the lines.
Mobility does not fully explain the lack of dynamism
of the Brussels office market. On top of the cyclical
aspect, we should once again point at the overly
slow and complicated process to obtain permits for
new construction, as well as the huge occupancy
cost and tax differentials between Brussels and its
periphery, and even between Brussels communes.
Improving mobility is a part of the solution, but this
will not solve all of the problems of the Brussels
office market.
Source all charts : JLL Research 
- 8 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Investment Market Belgium

€ 4 billion ahead TOTAL INVESTMENT VOLUME BY SECTOR
- BELGIUM -
Over the last 9 months investment volume Proportion of retail rises
surged by 59% to € 3.3 bn, largely boosted by two
huge shopping center deals. By year-end a total 5.000

volume in excess of € 4 bn is possible, once again

4.000
due to shopping center deals but also industrial
portfolios and € 100 Mio + office transactions 3.000
in Brussels CBD. For the first time ever, retail
exceeds offices with 50% of the investment 2.000
volume, vs. 20% in the 2005-2014 period.
Offices follow with 32% and industrial with 7%, 1.000
retirement homes ranking fourth with 6%.
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 9M 15
Offices in Q3 2015: € 252 Mio / -19.6%
Office Industrial Retail Retirement Homes Other
Q3 is another quiet quarter as far as offices are
concerned, we registered € 252 Mio volume,
down 6.6% on Q2 and down 19.6% y-o-y. Year to
date volume therefore came in at € 1,038 Mio, PRIME OFFICE YIELDS (6/9 YEAR LEASES)
down 28% y-o-y. A few large size transactions
will be closed in Q4, among others the Astro High spread between CBD and non-CBD districts
Tower, full year volume may end-up close to
9%
€ 1.5 bn, vs. € 2.1 bn a year ago. Recent office
transactions comprise the sale to Apollo of
8%
a large part of CBRE Global Investor’s office
portfolio in Brussels for an estimated amount of
c. € 145 Mio. Such a deal is typical of the appetite 7%
of opportunistic investors. Also at the edge of
the European district, Sarasin Sustainable Fund 6%
acquired Deka’s Cortenberg Center for € 30 Mio.
5%
Prime yields for core properties on conventional Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 Q4 11 Q4 11 Q4 12 Q4 13 Q4 14 Q3 15
lease terms in Brussels edged once again down Decentralised Periphery Pentagon
by 25 bps in most districts, 5.5% being the new
North EUR Louise
benchmark in Brussels CBD. Lower yields
are also observed for the best buildings in the
Decentralised, we set as a new benchmark
6.75%, 75 bps lower than a year ago. Deals under
offer are below this level, as yields in the CBD
compressed, prime but non CBD properties
follow the same path. Investors remain however
cautious in the Periphery, the several transactions
closed over the last 12 months being generally
above 9 or 10%.

Yields for long term lease properties are

unchanged at 4.5%, but we will see transactions
shortly closing below this level.

“ Prime yields are strongly compressing

in all asset classes”
Jean-Philip Vroninks
Head of Capital Markets BeLux

Source all charts : JLL Research 

- 9 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Exceptional quarter for retail in Q3 2015: € 1.2

bn / +1140%

The third quarter of 2015 was an outstanding

quarter with a total investment volume of € 1.2
bn, over 10 times above the same quarter last
year. The volume year-to-date is € 1.67 bn, more
than 5 times above the volume invested in the
first 3 quarters of 2014. A number of exceptional
transactions were registered this quarter,
involving shopping centres and portfolio deals.
No less than 4 transactions were registered
this quarter in the segment above € 50 Mio. The
largest retail investment transaction this year in
Belgium was finalised mid-July : the acquisition
by AEW and China Investment Corporation, a
Chinese sovereign wealth fund of the Celsius
Portfolio from CBRE Global Investors, with
10 retail properties in France and in Belgium
including the Waasland Shopping Centre and
50% of the Wijnegem Shopping Centre. Of the
€ 1.3 Bn paid for the Celsius Portfolio approx.
€ 825 Mio is allotted to the two Belgian assets,
representing a yield of 4.1%.

Three other large investment transactions were

closed this quarter. The Constellation portfolio
was sold to CBRE Global Investors by developer
MG Real Estate for € 79.6 Mio at a yield of 5.4%.
Developer Equilis sold a retail warehousing
W I J N E G E M A N D WA A S L A N D S H O P P I N G portfolio to Belgian private investor Société de
CENTERS l’Argayon for € 75 Mio at a yield of 6.5%. Basilix
Shopping Centre in Brussel was sold to French
S E L L E R : C B R E G LO B A L I N V E S TO R institutional investor Primonial for € 64 Mio.
BUYERS: CIC / AEW
Yields declined in the previous quarter due to the
huge interest for all retail asset classes. In view of
the continuing high demand for retail investment,
yields remained stable throughout this quarter.
Prime high street shop yields are in the region of
3.75%, prime shopping centre yields are around
to 4.25% and prime retail warehousing yields are
5.75%.

Source all charts : JLL Research 

- 10 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Industrial in Q3 2015: € 21 Mio / - 29%

INVESTORS BREAKDOWN BY ORIGIN 9M 15
The volume invested in industrial properties
in Belgium in Q3 2015 was relatively low at Further internationalisation
€21.25 Mio, against a quarterly average for Q3
Others
in the 2010-2014 period of € 42 Mio, i.e. double 4%
the current volume. Nevertheless, thanks to
the high investment volume recorded at the USA
10%
beginning of the year, 2015 will be a good year for UK
industrial investment. The volume for the year- Germany 7%
4% Belgium
to-date amounts to € 223.4 Mio, 38% above that 46%
recorded in the same period last year and already France
4%
17% above the average annual volume in 2010-
2014. The largest deal this quarter was the sale China
25%
by developer FuturN of a 7,700 sq.m. logistics
development in Cargovil Vilvoorde for € 7.5 Mio.
The property is let to Pharma Belgium with a 12-
year lease and offers an initial yield of 6.5%. JLL
acted as sell-side agent in the transaction.

Demand for prime industrial opportunities INVESTMENT VOLUME BY TYPE INVESTOR 9M 2015
remains high and offer remains limited, as a Institutionals represented 38%
result prime yields compressed for the second
consecutive quarter. Prime logistics yields
Corporate Developers
compressed 25 bps this quarter to 6.5%, and 2% 2%
Government
1%
prime semi-industrial yields now stand at 7.25%. REITs Other
20% 0%

Internationalisation of the investors base Propco's

3%

Another remarkable fact of 2015 for real estate in

Belgium is the further internationalization of the Private
12%
investor base. Over the 2010-2014 period, Belgian
investors contributed to 68% of investment volume Institution
and Germans to 13%, followed by France with 5%. 38%

In 2015 to date, Belgian investors contributed to Pooled

46% and China to 25%. Obviously this is largely Funds
22%
due to CIC’s acquisition of the Celsius portfolio,
however Asian investors are attracted by Belgium
property, as will be illustrated by other deals in
Q4. The USA – mainly private equity funds – ranks
third with 10%, and the UK with 7%. Most of these
investors are looking for yield, and Belgium is a
credible alternative for retail, offices and hotel
assets. Logistics is largely dominated by local
investors, like WDP and Montea.

The typology of the investor base in Belgium is

primarily long term, with institutionals and REITs
taking the lion’s share. 2015 is no exception, but
out of the 38% generated by institutionals, the
share of CIC, the Chinese sovereign fund which
we consider as institutional, is huge. Pooled
funds like Schroders, Union Investment and KKR
contributed to 22% of the volume, and REITs
(mainly Belgian) to 20%.

Source all charts : JLL Research 

- 11 - On Point • Brussels Office Market • Q3 2015 www.jll.be

JLL Research Advisory Services

JLL time series for quarterly and submarket data are available on request, as well as rental analysis
(top quartile and weighted average rents). This is a fee-based service.

JLL Research produces on a quarterly basis detailed submarket reports about Brussels office districts.
These are available on request against paying subscription.

Our Research & Advisory service also prepares micro-location studies for landlords with a focus on
rental analysis, existing and future competition analysis with GIS mapping, transaction analysis and
SWOT.

Contact:
Pierre-Paul Verelst
Head of Research BeLux
+ 32 2 550 25 04
pierre-paul.verelst@eu.jll.com

Source all charts : JLL Research 

 - 12 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Letting transactions – last 6 months

YEAR QTR DISTRICT Operation BUILDINGNAME AGE AREA TENANT
PASSPORT (BRUSSELS
2015 3 PERINE Preletting Project 13,000 KPMG
AIRPORT)
2015 3 DECENE Letting SILVER BUILDING (REYERS) Modern 10,000 CPAS SCHAERBEEK
SINGLE RESOLUTION
2015 2 PENTAGON Preletting TREURENBERG UC 9,800
BOARD
SOLIDARIS - MUTUALITE
2015 3 PENTAGON Letting DE BROUCKERE TOWER Old 6,900
SOCIALISTE

2015 2 PERINE Letting EVEREST Modern ISS FACILITY SERVICES

4,300
2015 3 EUR Extension GUIMARD 10 UR 3,760 DEGROOF-PETERCAM
2015 3 PERISE Letting WATSON & CRICK PARK New 3,608 LHOIST
MARIE DE BOURGOGNE, INDUSTRIE FORDERUNG
2015 2 EUR Letting New 3,477
58/ BELLIARD, 45 GESELLSCHAFT (BDI)
2015 3 PERISE Letting AXIS PARC OFFICE New 3,079 GLAXOSMITHKLINE
INSTITUT LIBRE MARIE
2015 3 EUR Letting ARLON, 53/ Old 3,016
HAPS

Office investment transactions 9M 15

Price
YEAR QTR DISTRICT Property est. (EUR SELLER BUYER
Mio)
Portfolio CBRE Global CBRE Global
2015 3 Various 145* Apollo Global Management
Investor Investors
2015 1 Periphery Gateway 140 Codic / Immobel Befimmo
CBRE Global
2015 1 EUR Bastion Tower 110 Schroders
Investors
2015 2 EUR Marnix 17 60 Tishman Speyer GAC
2015 2 Louise Louise Claus 35.5 Generali Belgium Ciloger
CBRE Global
2015 2 EUR Science 14 32 AIK
Investors
2015 3 EUR Cortenberg Center 30 Deka Sarasin
2015 2 Louise E-Lite 25 Fidentia Schroders
International Real
2015 2 Periphery Parc Scientifique Monnet 23 IBW
Estate
Standard Life
2015 2 Decentralised Plaine 15 19 Ethias
Investment
Irish Bank Resolu-
2015 1 Pentagon Centre Etoile 17 Ghelamco
tion Corp

Source all charts : JLL Research 

- 13 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Map of the Brussels office market

Source all charts : JLL Research 

- 14 - On Point • Brussels Office Market • Q3 2015 www.jll.be

Definitions
Take-Up to a first class tenant with an occupational
lease that is standard for the local market.
The prime initial net yield is quoted, i.e., the
Take-Up – New: Represents take-up of
initial net income at the date of purchase,
floorspace in new or substantially refur-
expressed as a percentage of the total
bished buildings of less than five years since
purchase price, which includes acquisition
completion.
costs and transfer taxes.
Take-Up – Modern: Represents take-up of
floorspace built or renovated between 5-15
years ago.
Take-up – Old: Represents take-up of floor- Vacancy
space built more than 15 years ago and not
renovated. Vacancy represents completed floorspace
offered on the open market for leasing or
sale, vacant for immediate occupation on
Rent the survey date (normally at the end of each
quarter period), within a market. It includes
all vacant accommodation irrespective of the
Prime Office Rent represents the top open-
quality of office space or the terms on which
market rent that could be expected for a
it is offered.
notional office unit of the highest quality and
Vacancy excludes “obsolete” or “mothballed”
specification in the best location in a market,
office property, i.e. floorspace held vacant and
as at the survey date (normally at the end
not being offered for letting, usually pending
of each quarter period). The rent quoted
redevelopment or major refurbishment.
normally reflects prime units of over 500
Vacancy Rate
sq. m. of lettable floorspace, which excludes
The Vacancy Rate represents immediately
rents that represent a premium level paid for
vacant office floorspace in all completed
a small quantity of space.
buildings within a market as at the survey
date (normally at the end of each quarter
Top Quartile Office Rent represents the
period), expressed as a percentage of the
average mean value of the top (25 %) quartile
total stock.
of all known face rents achieved on leasing
transactions completed within a market
during the survey period (normally calculated
annually, or quarterly on a 12 monthly rolling Stock
basis). It excludes any unrepresentative
deals. Stock represents the total amount of
completed office space in buildings mainly
Weighted Average Rent represents the used for office purposes within a market that
average mean value of all known face is capable of occupation regardless of the
rents achieved on leasing transactions type of ownership or type of building quality,
completed within a market during the as at the survey (normally at the end of each
survey period weighted with the floorspace quarter period).
(normally calculated annually, or quarterly
on a 12 month rolling basis). It excludes any
unrepresentative deals.
Completions
Completions represent floor-space
Prime yield completed during the survey period
(normally annually). Completions include
Represents the best (i.e. lowest) “rack- new development and refurbished
rented” yield estimated to be achievable for a accommodation, speculative developments,
notional office property of the highest quality pre-let floor space and space for
and specification in the best location in a owner-occupation
market, as at the survey date (normally at
the end of each quarter period). The property
should be let at the prevailing market rent

Source all charts : JLL Research 

- 15 - On Point • Brussels Office Market • Q3 2015 www.jll.be

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Source all charts : JLL Research