For institutional fund strategies, Norrmalm (CBD) carries the strongest investor flag in Stockholm, with prime yields around 4.5%.

  • Trophy submarket (Norrmalm (CBD)) carries the strongest investor flag.
  • Prime yield: 4.5%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Stockholm office fund strategy and flag

For institutional fund strategies, Norrmalm (CBD) carries the strongest investor flag in Stockholm, with prime yields around 4.5%.

TL;DR

  • Trophy submarket (Norrmalm (CBD)) carries the strongest investor flag.
  • Prime yield: 4.5%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Stockholm, that's Norrmalm (CBD) and assets like Sthlm 01, Norra Tornen.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityStockholm
countrySweden
regionEMEA
classARentLocal8200 SEK/sqft/yr
classARentUsd$770/sqft/yr
vacancy10.6%
typicalLeaseYears5
typicalRentFreeMonths4
submarkets5
primeYieldPct4.5%
primeYield4.5%
trophyAnchorNorrmalm (CBD)

Frequently asked questions

Where do core funds buy in Stockholm?
Trophy submarket — Norrmalm (CBD) — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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