Finland Office Figures Q1 2023

‒ Finnish investment market slowed down in the first quarter of 2023 as rising interest rates and shift in the pricing environment limited the number of closed transactions. Office investment volume in the first quarter was €131 million, down 42% year-over-year. Total of 66% the transaction volume landed in the capital city region, and 69% of total volume came from international investors.

‒ Prime office yield increased 15 basis points to 4.00% and prime yield outside CBD by 25 bps to 4.75% amidst the shift in pricing environment. Investors remained selective in allocating new capital under current market conditions. Polarization between prime and secondary assets continues to widen and higher quality offices with green credentials are likely to attract more capital despite the current market sentiment.

‒ Notable office transactions in the first quarter of 2023 were NIAM’s purchase of development project of Finland’s tallest office tower covering total of 11,000 sqm office space from SRV and Corum’s acquisition of Fellowmind’s headquarters in Pitäjänmäki.