At a glance
- Small-scale business units remain scarce, particularly in and around the Randstad.
- The redevelopment of business parks for housing further reduces supply.
- As a result, rents for marketable units remain under upward pressure.
Structural shortages in the SME segment
Small-scale business units for installation contractors, craft businesses and small logistics service providers remain scarce, particularly within the ring roads of major cities. New development in this segment often falls short of demand, partly because of competing land uses.
Business parks under pressure
- Some business parks are being redeveloped for housing, further reducing the supply of industrial premises.
- Municipalities are seeking a balance between housing requirements and space for business activity.
- Businesses relocating to the outskirts of cities are increasing demand there for accessible, marketable business premises.
Rental trends
Rents for marketable business units in easily accessible locations remain under upward pressure, while outdated or less accessible business premises are seeing more moderate growth. The gap between the two categories is widening as tenants become more selective about accessibility and appearance.
What owners can do
Owners of outdated business premises can improve lettability through targeted investment in layout, insulation and appearance, without the cost of a complete new build. For owners of marketable units, the main challenge remains retaining good tenants when leases change.
Outlook
As long as new construction of small-scale business premises remains limited and business parks compete with housing development, a structural increase in supply is unlikely. This supports the value of existing, marketable property in this segment over the medium term.
Frequently asked questions
Why do small-scale business premises remain so scarce?
New construction in this segment often competes with other, more financially attractive uses, such as housing or large-scale logistics, leaving supply structurally behind demand.
Is investing in small business units still attractive?
For investors, this segment generally remains attractive thanks to persistent scarcity, provided they allow for the greater management demands of having several smaller tenants.