Marginal fall in Stavanger’s office-rental prices predicted / News / The Foreigner

Marginal fall in Stavanger’s office-rental prices predicted. Worse times in Oslo and Bergen. An analysis conducted in cooperation with Estate Magazine shows that the cost of renting modern, centrally-located offices are set to fall. Whilst it is expected that both 2009 and 2010 will see prices decrease annually by up to 10 percent in Oslo and Bergen, Stavanger will remain relatively unaffected, with a reduction of 1.5 percent per annum. This is equivalent to approximately 50 kroner per square metre each year.Partly oil-related The magazine gives one reason for the relatively modest fall as being Stavanger’s oil industry.

stavanger, oslo, bergen, office, property, rental, prices, oil, investment, space, norwegian



The Foreigner Logo

The Foreigner is an online publication for English speakers living or who have an interest in Norway. Whether it’s a glimpse of news or entertainment you’re after, there’s no need to leave your linguistic armchair. You don’t need to cry over the demise of the English pages of Aftenposten.no, The Foreigner is here!

Norske nyheter på engelsk fra Norge. The Foreigner er en engelskspråklig internett avis for de som bor eller som er interessert i Norge.

Google+ Google+ Twitter Facebook RSS RSS



News Article

LATEST:

}

Marginal fall in Stavanger’s office-rental prices predicted

Published on Friday, 19th June, 2009 at 00:31 under the news category, by Michael Sandelson   .

Worse times in Oslo and Bergen.

View of Norwegian Town Stavanger
View of Norwegian Town Stavanger
Photo: irakite/Shutterstock Images


An analysis conducted in cooperation with Estate Magazine shows that the cost of renting modern, centrally-located offices are set to fall. Whilst it is expected that both 2009 and 2010 will see prices decrease annually by up to 10 percent in Oslo and Bergen, Stavanger will remain relatively unaffected, with a reduction of 1.5 percent per annum. This is equivalent to approximately 50 kroner per square metre each year.

Partly oil-related

The magazine gives one reason for the relatively modest fall as being Stavanger’s oil industry.

“Investments made by the oil companies in 2009 look as though they will increase prudently this year” writes the magazine’s Richard Gilde.

But next year could be another story.

“What will happen in 2010 is more uncertain. If the oil price remains at a decent level, there are good chances that the investments will be high, even though they will be lower than in 2009. But should the price of oil be dragged down even further, then the amount of oil investment could fall considerably, and the outlook for the Norwegian offshore-related industry will be dramatically worsened” he continues.

Partly property-related

Another reason has been the lack of available office space. Gilde writes that Vågen Properties (Eiendom) puts the percentage of empty office space in 2008 at 1.6 percent. The company forecasts this will rise to just below 5 percent, as an additional 90,000 square metres of office space is to be completed by the end of this year.

A further 30,000 will be available in the first quarter of 2010.



Published on Friday, 19th June, 2009 at 00:31 under the news category, by Michael Sandelson   .

This post has the following tags: stavanger, oslo, bergen, office, property, rental, prices, oil, investment, space, norwegian.





  
Do NOT follow this link or you will be banned from the site!