Trondheim

Key figures

Q1 2021

Office vacancies are declining somewhat in Trondheim as a whole, but are rising in the city centre. Our last measured vacancy rate for Trondheim was 7.3 per cent. In the centre of Trondheim, the vacancy rate is slightly higher, at 9.2 per cent. 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 2020 as a whole, 23 sales with a total value of approx. NOK 4.5 billion were registered in the Trondheim region. 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

4.25
0

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)
11

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)
3.9

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)
7.3
-1.2

Office vacancy in Trondheim is 7,3 %.

Office rental market

Q1 2021

Our latest vacancy count shows an office vacancy rate in Trondheim of 7.3 per cent. There are great variations in vacancy rates among the different office areas in Trondheim. The centre of Trondheim, which accounts for 40 per cent of the total office rental market, has an increasing vacancy rate, with 9.2 per cent of the office premises now vacant. read more

The average rental price increased by 6 per cent in 2020 compared with 2019, 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 is now NOK 1 810 (per square metre per year) (2019: NOK 1 710), based on 169 signed contracts. For the 15 per cent most expensive lease contracts, the average rent is NOK 2 540, compared with NOK 2 330 in 2019.

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
AreasA - Å High standardHigh - Low Office vacancyHigh - Low
Moholt/Tunga 1300 - 1850 8.0 %
Sluppen 1300 - 1900 3.4 %
Lade/Leangen/Ranheim 1300 - 1700 8 %
Fossegrenda 1100 - 1400 5.3 %
Sentrum 1600 - 2300 9.2 %
Heimdal 1200 - 1550 2.9 %
Elgeseter-Tempe 1450 - 1900 8 %

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

Transaction market

Q1 2021

The market is still characterised by local coronavirus outbreaks and a great deal of uncertainty. Nevertheless, activity in the market is high, and transaction volumes in Trondheim for 2020 almost reached the levels we saw in 2019, which was also a very good year. read more

The Trondheim region saw 23 sales in 2020, totalling close to NOK 4.5 billion (excluding portfolio purchases, and only including transactions > NOK 50 million). Investors are still keen to buy property in Trondheim, especially when the properties are centrally located. Our latest investor survey for Trondheim also shows that the vast majority of investors want to increase their portfolio of commercial property. The few investors who indicated that they did not expect to buy more property, stated the lack of objects in the market as the reason.

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