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The Ghent office market is booming. Overall, the trade volume of office markets in 2010 represented 70.000m². After 2007, this is the second largest volume in the past decade. This high insertion is also the consequence of the achievement of strategic projects The Loop and Gent-Saint-Peter's railway station, of which the first transactions have been approved. Also other indicators, such as the low lack of occupancy, illustrate that the Ghent office market is in excellent shape.
Booming transactions
The Ghent office market has had a prosperous year, both as regards the insertion as well as the number of transactions. In 2010, the Department of Economy registered 67 transactions, representing 70.000m² of floor surface. This is the second largest volume of the past decade and it considerably exceeds the average results over that period of time. On average, there has been an insertion of 44.000m² between 2001 and 2010. In 2007, we boasted a record insertion of 90.000m².
The comprehensive insertion in 2010 is also the consequence of the strategic projects The Loop and Ghent Saint-Peter's railway station, of which the first transactions have been approved. The major transaction was generated by the Flemish authorities' decision to construct a new Flemish Administrative Centre at the Fabiolalaan, in the immediate vicinity of Ghent Saint Peter's railway station with a surface of 36.000m². The very same Flemish authorities have also decide to construct a new office building for the Flemish Environmental Agency (Vlaamse Milieumaatschappij-VMM) at The Loop with an overall floor surface of 7.500m².
Already 25 per cent of the comprehensive yet to be developed office surface of The Loop and Saint Peter's Railway station are already occupied, even before the office buildings are effectively built. This clearly demonstrates that these two strategic office projects with an overall surface of 240.000m² are necessary to respond to the demands of available office space.
Minor lack of occupancy
Also the lack of occupancy is currently minor, certainly when compared to other Flemish cities. At the end of 2010, the overall lack of occupancy amounted to 60.000m² or 4.4 per cent in comparison with the overall office market supply. The entire office market supply in Ghent currently amounts to 1.36 million m². A friction lack of occupancy of 6 per cent is considered to be acceptable in order to cope with the direct demand of office space. The lack of occupancy remains stable as regards the end of 2008 and end 2009.
Rental prices
In 2010, the average rental price on the Ghent office market amounted to 110 euro/m² per year. The prime rents (top rental prices for new housing estates) amounted to 140 euro/m² per year.
New and planned office developments
In the coming years, additional office space will be built. Next to the construction of office projects at The Loop and Ghent Saint Peter's railway station, it will also include projects such as the Artevelde stadium and various smaller projects which will generate the necessary new space on the Ghent office market. In the next 15 years, there are plans for various locations in an overall extension of approximately 275.000m², which is partly effectively being constructed.
Information
Department of Economy, Mathias Vandewyngaerde, Sint-Niklaasstraat 27/401, 9000 Gent, tel. 09 266 84 21, fax 09 266 84 49,
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Competent
Mr. Mathias De Clercq, Senior Deputy Mayor
Deputy Mayor of Economy, Youth and Self-Employed
Town Hall, Botermarkt 1, 9000 Gent, tel. 09 266 54 00, fax 09 266 54 19,
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