Trondheim

Key figures

Q3 2023

Our latest local and national surveys indicate a significantly more selective market, and somewhat lower activity in the transaction market. Investors have both the willingness and the capital when the right properties come for sale, but they are far more cautious when it comes to higher-risk properties.

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

Prime Yield

5.75
1

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

6.5
0.25

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 2023

(Accumulated)
1

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)
6.5

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)
7.2
1.4

Our latest vacancy count shows an office vacancy rate in Trondheim of 4.6 per cent. There are great variations in vacancy rates between the different office areas in Trondheim. Trondheim city centre, which makes up 40 per cent of the total office market, has a declining vacancy rate, with 3 per cent of office premises currently vacant.

Office rental market

Q3 2023

Our latest vacancy count shows an office vacancy rate in Trondheim of 4.6 per cent. read more

The average rental price increased by 8 per cent in 2022 compared with 2021, according to the statistics agency Arealstatistikk. A strong increase in the consumer price index (CPI) contributed to this development. The average rental price in Trondheim has exceeded NOK 2 000 per square metre for the first time, with an average rental price of NOK 2 040 per square metre per year (2021: NOK 1 890), based on 160 contracts signed in 2022. For the 15 per cent most expensive rental contracts, the average rent is NOK 2 940 per square metre, which is an increase of a full 11 per cent compared with 2021. The peak rent in the city centre has increased in recent years, and we are now seeing several examples of more than NOK 3 000 per square metre.

The signing volume is high, and 160 rental contracts for a total of around 163 383 square metres were signed in 2022. The average term of the contracts is five years.

Many contracts will expire this year and next. Contracts for a total of almost 100 000 square metres will expire this year, while contracts for around 92 000 square metres will expire in 2024. In both years, almost half of these contracts are for premises of over 2 000 square metres.

The vacancy rate in Trondheim fell by 1.2 percentage point overall for the first half of 2023, compared with the second half of 2022. The city centre, which accounts for over 40 per cent of the office market in Trondheim, is seeing a positive trend and a vacancy rate of 3 per cent, which must be considered to be low. The low vacancy rate is confirmed by our Trondheim office, which reports a good level of interest and few vacant premises.

 

Click headings to sort table
Click the rows for more information about the area
AreasSorter High standardSorter Office vacancySorter
Moholt/Tunga 1300 - 1850 1.6 %
Trondheim Sør 1750 - 2300 4.8 %
Trondheim Øst 1650 - 2200 9.9 %
Heimdal/Fossegrenda 1100 - 1650 8.8 %
Sentrum 2400 - 3000 3 %
Randsone Vest - %
Randsone Øst - %

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

Transaction market

Q3 2023

In 2022, the transaction volume in Trondheim reached a record high NOK 8.3 billion, spread over 25 sales. So far this year we have recorded transactions of just below NOK 1 billion, which is a decrease in line with the national trend. Fewer investors than usual have plans to increase their property holdings, but there is still great interest in city centre office properties and value-add properties. read more

Our latest investor survey in Trondheim shows that record few investors have ambitions to increase their property holdings, which is normally a good temperature gauge for activity levels going forward. At the same time, investors believe that yields have increased somewhat recently, but not nearly as much as the increase in interest rates alone would suggest. Further, we are seeing a change in the preferences of investors, with a larger proportion than before looking for development and value-add properties with a view to achieving returns. This is in a period when many people believe it will be difficult to achieve good returns on pure cash-flow properties.

DNB Næringsmegling is adjusting prime yield in Trondheim up to 5 per cent.

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