Trondheim

Key figures

Q4 2021

Office vacancy rates are rising somewhat in Trondheim overall compared with the first half of 2021, but they are falling in the city centre. Overall for Trondheim, we registered a vacancy rate of 8.4 per cent. In downtown Trondheim, the vacancy rate has fallen to 8.3 per cent. Looking back to 2020, the total vacancy rate in Trondheim has been relatively flat. read more

In the transaction market, investors have both the willingness and the capital to buy, but report that they are having problems finding available premises. For 2021, as of the fourth quarter, 13 sales with a value totalling approximately NOK 4.3 billion have been recorded in the Trondheim region. In other words, the Trondheim market has soon surpassed last year, which ended at NOK 4.5 billion, and has what is traditionally considered the best quarter still to go. Demand for commercial property is very high among investors, not least for centrally located properties. Office buildings top the list of sought-after objects, while warehousing and logistics facilities come a close second.

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Offices with a high standard, best location, 7 years weighted remaining rental period, market rent and secure tenants.

Prime Yield

4.50
0.25

We assume a seven-year weighted remaining lease period, and therefore estimate that longer leases can be traded even lower.

Offices with ordinary standard, located in one of the office clusters outside the city center, 4-5 years weighted remaining rental period, market rent and ordinary companies as tenants.

Secondary yield

6.25
0

Normal yield is meant to reflect an average office property. We have defined it to be an office property with 4–5 years left of the lease contract, an OK location.

Number of transactions> NOK 50 million

Transactions in 2021

(Accumulated)
9

The number of transactions indicates the number of transactions with a minimum value of NOK 50 million in Trondheim and Central Norway.

Annual transaction volume measured in NOK billion.

Transaction volume

(B NOK)
3.5

The transaction volume indicates the total property value of the transactions made, with a minimum value of NOK 50 million.

Office space offered in the market and available within 12 months.

Vacancy

(per cent)
6.1
-2.3

The office vacancy rate in Trondheim rose when the last vacancy count was made, and is now at 8.4 per cent.

Office rental market

Q4 2021

Our latest vacancy count shows an office vacancy rate in Trondheim of 8.4 per cent. There are great variations in vacancy rates among the different office areas in Trondheim. Trondheim city centre, which makes up 40 per cent of the total office market, has a falling vacancy rate that now shows that 8.3 per cent of office premises are vacant. read more

The average rental price increased by 2 per cent in the first half of 2021, compared with 2020, according to the statistics agency Arealstatistikk.  In other words, there was a positive development in office rental prices during a year that was highly challenging for the Norwegian economy. The average rental price in Trondheim now stands at NOK 1 850 per square metre per year (2020: NOK 1 810), based on 81 signed contracts for the first half of 2021. For the 15 per cent most expensive leases, the average rent stands at NOK 2 560, compared with NOK 2 540 in 2020.

In Trondheim, we expect to see greater price differentiation in the time ahead between the most attractive properties with good and secure cash flows and the more uncertain projects. We believe that the long-term, secure cash flows (especially with tenants from the public sector) will hold up well, and may even lead to sharper pricing than before the COVID-19 pandemic. At the same time, we believe the situation will be significantly more demanding for higher-risk properties, both for properties with high counterparty risk and for properties in less attractive locations.

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Click the rows for more information about the area
AreasSorter High standardSorter Office vacancySorter
Moholt/Tunga 1300 - 1850 8.2 %
Trondheim Sør 1750 - 2300 8.0 %
Trondheim Øst 1650 - 2200 7.7 %
Heimdal/Fossegrenda 1100 - 1650 6 %
Sentrum 2400 - 3000 4.4 %
Randsone Vest 800 - 1600 3.1 %
Randsone Øst 800 - 1600 14.1 %

Rental prices
Top rent
High standard -
Office vacancy pr. %
Construction ()

Transaction market

Q4 2021

There is high activity in the market, and transaction volumes in Trondheim for 2021 are already approaching 2020 levels, now showing sales of NOK 4.3 billion. read more

According to investors, they still have the capital and inclination to invest in commercial real estate in Trondheim. In particular, centrally located office properties come high on the list, but logistics facilities have also become more popular in recent years.  Our latest investor survey for Trondheim also shows that the vast majority of investors want to increase their portfolio of commercial property. The few who did not express an intention to further increase their portfolio expected to maintain a balanced position. None of the Trondheim investors want to sell, and several point to the fact that it’s difficult to find relevant objects in the market.

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