* % Change for Prime Rents and Capital Values calculated using local currency

Office Market Overview

Office demand was in line with the previous quarter, with 9,545 sq. m
taken up in Q1 2014. The single largest deal, accounting for 72% of
the total take-up volume was signed by Amazon Liquavista, which
leased 6,915 sq m in the Adjacent Centre submarket. Other than this,
activity in Q1 was muted. Occupiers make the most of the current
market situation and continue to successfully negotiate flexible lease
terms, which comprise 10-15 months rent free on a 5+5 year lease
contract in prime locations and 12-20 months rent free for the same
lease length at the overall market level. Prime rents remained stable
at 180 / sq m pa and are likely to remain flat going forward. Overall
vacancy increased by 140bps to reach 12.9% in Q1 2014 as
occupiers continue to release surplus space in the market. The
municipality is making continuous efforts to reduce current vacancy
levels. Expediting office conversions into other uses and a restrictive
new-build policy are two key measures in that direction. The effect of
these measures may however be negated to some extent as
occupiers continue to consolidate, potentially increasing choice,
particularly in peripheral locations. Q1 saw the completion of
Solliances owner occupied space measuring 2,700 sq m in the
Gestel/High Tech Campus. The development pipeline of 7,155 sq m
scheduled for completion in Q4 2014 is fully pre-let. After a surge in
investment activity in the previous quarter, office investment volume
fell to 1.55 million in Q1. Prime yields were unchanged at 6.55%.

Figure 1: Take-up

Figure 2: : Supply and Vacancy Rtes

Figure 3: Prime Rents and Rental Growth

Figure 4: Prime Yields

Source all Charts: JLL
0
20
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Q
1
'
1
4
000s sqm
TakeUp 10yr Average
0
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6
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16
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000s sqm
VacancyTotal VacancyRate
Vacancy Rate %
-10
-5
0
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0
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Q
1
'
1
4
Rental Growth PrimeRent
Prime Rent (psmpa) Annual Rental Growth*
5.00
5.50
6.00
6.50
7.00
7.50
Q
4

0
1
Q
4

0
2
Q
4

0
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4

0
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Q
4

0
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Q
4

0
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0
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Q
4

0
9
Q
4

1
0
Q
4

1
1
Q
4

1
2
Q
1

1
4
PrimeYield 10yr Average
Prime Yield (%)
Eindhoven Office Market
Profile - Q1 2014
EMEA Office Research



12 Month
Summary Statistics Q1 14 Q-o-Q Y-o-Y Outlook
Take-up (000s sqm) 10 -1.5 % 333.6 %
Vacancy Rate (%) 12.9 130 bps -20 bps
Prime Rent (psm) 180 0 % -2.7 %
12 Month
Q1 14 Q-o-Q Y-o-Y Outlook
Capital Value (psm) 2748 0 % -2.7 %
Prime Yield % 6.55 0 bps 0 bps
Change*
Change*

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COPYRIGHT JONES LANG LASALLE IP, INC. 2014.
All rights reserved. No part of this publication may be
reproduced or transmitted in any formor by any means
without prior written consent of Jones Lang LaSalle. It is
based on material that we believe to be reliable. Whilst
every effort has been made to ensure its accuracy, we
cannot offer any warranty that it contains no factual
errors. We would like to be told of any such errors in
order to correct them.
JLL Contacts
Frans Landmeter
Head of Office Agency -
Eindhoven
Eindhoven
+31 40 250 0102
frans.landmeter@eu.jll.com
Dr van Leeuwen
Head of Capital Markets
Amsterdam
+31 20 540 7912
dre.van-leeuwen@eu.jll.com


Sven Bertens
Head of Research
Amsterdam
+31 20 540 7926
sven.bertens@eu.jll.com

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