Flanders Office Market: Annual Review 2023

Slight decline of occupier activity in 2023. Antwerp, Mechelen and Leuven performing well but Ghent declines. Fewer pre-lettings by authorities compared to 2022, but the number of transactions rises.

Vacancy moderately increased while remaining very low compared to recent history. Main movements were in Leuven (up) and Hasselt (down) while the larger cities were nearly unchanged.

Several cities such as Antwerp posted strong rental growth due to scarcity and persistently high construction costs and financing. 2024-2025 should see additional growth in all cities.

Now that inflation is progressively back to target levels, rate cuts are expected as of the summer, providing some comfort for a recovery of both occupier and investment markets. The heavy trends of occupier focus on Grade A assets, health & well-being and sustainability will continue to drive demand for the coming years.