Friday, 11 September 2026
Norway’s office market continued its gradual recovery during the second quarter of 2026, with stronger leasing and a significant increase in investment activity. However, rising vacancy in Oslo and financing costs that remain close to prime property yields are keeping investors selective and increasing the divide between the strongest buildings and secondary assets.
Oslo recorded 177,670 sqm of office leasing during Q2, an increase of 18% compared with the same period last year. Leasing for the first six months reached approximately 341,000 sqm, indicating that occupiers remain active despite more cautious conditions in the investment market.
Rental performance was less uniform. The city’s top office rent remained unchanged at NOK 6,700 per sqm annually, while the average declined by 0.6% year-on-year to NOK 3,100. Vacancy increased by 134 basis points to 7.51%, suggesting that stronger leasing has not been sufficient to prevent additional space becoming available.
This divergence is creating increasingly different conditions across the Oslo market. Buildings capable of meeting occupiers’ requirements for location and quality are maintaining stronger rental levels, while the decline in average rents points to greater pressure elsewhere. Higher vacancy also gives tenants more alternatives when considering relocation or renegotiating existing leases.
The development pipeline remains relatively contained. The report records around 25,000 sqm of completions in 2026, with approximately 97,000 sqm forecast for the full year and 148,000 sqm indicated for 2027. Total Oslo office stock is approximately 10.56 million sqm.
Investment activity improved substantially during Q2, reaching NOK 6 billion, approximately twice the level recorded during the first quarter. Two sizeable transactions involving portfolios containing several property types contributed to the quarterly result.
Offices nevertheless represented only 24% of total Norwegian commercial real estate investment, considerably below their ten-year average share of 36%. On a trailing 12-month basis, Norwegian office investment was approximately NOK 23 billion, broadly unchanged from the comparable figure a year earlier.
The principal obstacle to a broader investment recovery remains the relationship between property pricing and financing costs. Prime office yields increased by 25 basis points year-on-year to 4.75%, while five-year swap rates were around 4.7% in mid-August. That leaves a very narrow margin before lenders’ financing costs and other expenses are considered.
The result is a difficult acquisition environment for investors relying heavily on debt. According to CBRE, foreign and leveraged buyers are likely to remain less active unless borrowing benchmarks decline or sellers become prepared to transact at adjusted pricing levels.
Higher financing costs are also affecting the distinction investors make between property quality levels. Secondary offices are now priced at yields at least 100 basis points above the prime level, while fewer buildings are regarded as capable of attracting the strongest investment pricing.
Conditions outside Oslo provide a different picture. Bergen recorded a 6.5% year-on-year increase in prime office rents and the strongest first-half leasing activity among the regional cities covered by CBRE, supported by tighter availability. Stavanger remained relatively stable, helped by demand associated with oil services, while Trondheim experienced moderate rental growth.
Transactions during the quarter included Olav Thon Eiendom’s acquisition of Anthon Eiendom through a portfolio deal spanning several property sectors. Østbyen AS also acquired 65,000 sqm of office space in Trondheim.
The Norwegian office market therefore enters the second half of 2026 with two contrasting signals. Occupiers continue to sign substantial amounts of space and investment volumes have recovered from the lows of 2022 and 2023, but higher Oslo vacancy and expensive debt prevent the improvement from becoming a broad-based upswing.
The next phase is likely to depend heavily on financing conditions. A decline in swap rates would improve acquisition economics and could encourage leveraged and international buyers to return. Without that adjustment, sellers may need to reconsider pricing, leaving the market increasingly divided between properties capable of attracting equity-rich buyers and secondary offices requiring higher returns to compensate for greater leasing and capital expenditure risks.
