Thursday, 17 September 2026
Stockholm’s office market is showing an increasingly pronounced difference between its stronger urban districts and locations facing higher vacancy, with Ericsson’s planned relocation from Kista to Hagastaden set to become one of the clearest examples of this changing pattern.
During the second quarter of 2026, Ericsson announced agreements covering around 71,000 sqm of new office space with Atrium Ljungberg and Castellum in Hagastaden. Together with premises previously secured in the district, the agreements would increase the company’s total presence there to approximately 95,000 sqm.
The largest part of the expansion involves approximately 58,000 sqm across three planned buildings being developed by Atrium Ljungberg. The leases have 15-year terms, with occupation expected in stages between 2031 and 2033. The agreements are subject to conditions connected with land allocation and development agreements, which are expected to be resolved by the end of 2027.
The relocation will have substantial consequences for Kista, where Ericsson is expected eventually to vacate around 123,000 sqm. Based on vacancy conditions recorded in Q2 2026, CBRE estimates that Kista’s vacancy rate could reach between 55% and 60% once Ericsson has left. The estimate illustrates the scale of the challenge facing a district that already has considerably more available office space than Stockholm’s strongest locations.
Conditions in Stockholm’s CBD remain markedly different. Prime office rents were unchanged at SEK 9,500 per sqm annually during the second quarter, while the highest rents reached SEK 12,000 per sqm. The prime yield remained at 3.9%, and CBD vacancy declined from 7.0% in the first quarter to 6.8% in Q2. Across the wider Stockholm office market, vacancy stood at 14%, demonstrating how the citywide figure conceals substantial differences between individual districts.
Other large leasing agreements during the quarter also concentrated demand in established urban locations. Fastpartner leased 15,000 sqm at Tullvaktsvägen in Gärdet to Magasin X for an AI and robotics hub, while H&M Studios agreed a 6,900 sqm expansion in the same former Nasdaq property. Skanska also leased 6,600 sqm in its Olivin building in Västra Kungsholmen to Telenor, which plans to establish its Swedish headquarters there.
The transactions indicate that substantial corporate requirements remain in the Stockholm market, but demand is not being distributed evenly. Large occupiers are committing to particular districts and buildings, while locations losing major tenants face the more difficult task of finding new uses or occupiers for significant amounts of existing space.
Investment activity also remained substantial during the second quarter. Swedish office properties attracted SEK 15.7 billion of investment, representing around 20% of total property transaction volume and making offices the country’s third-largest investment sector during the period. However, the quarterly figure was influenced by several large transactions rather than a widespread increase in deal activity.
One of the largest transactions involved Castellum’s sale of two Stockholm office properties in Hagastaden and Norrmalm to Alecta Fastigheter for approximately SEK 5 billion. Alecta was also active in Gothenburg, where it acquired two fully occupied office properties in Gårda from Technopolis comprising approximately 28,500 sqm.
Ericsson’s relocation is therefore significant beyond the size of the individual leases. Hagastaden is positioned to gain one of Sweden’s largest corporate office concentrations, while Kista could eventually see more than 120,000 sqm released as Ericsson consolidates its operations elsewhere.
Combined with relatively low CBD vacancy, major leases in other inner-city districts and continued institutional investment in well-located properties, the development points to a Stockholm office market increasingly defined by differences between locations rather than a uniform movement in demand. For owners and investors, the ability of individual districts and buildings to retain major occupiers is consequently becoming an increasingly important factor in future performance.
