One in five Amsterdam offices face closure due to sustainability failures

As of March 2025, 20 percent of office buildings in Amsterdam still fail to meet the mandatory energy label C requirement, introduced in 2023. With over 6 million square meters of office space in the city, nearly 1.2 million square meters lack an energy label altogether. In some areas like Amsterdam-Zuidoost and the Westelijk Havengebied, the issue is particularly pronounced, according to Het Parool.

While the number of non-compliant buildings has decreased since the regulation was implemented, the problem remains serious. Just after the law came into effect, over half of Amsterdam’s office space didn’t meet the requirement. One year later, that figure dropped to 34 percent, but the remaining gap shows ongoing challenges.

Property owners who haven’t complied face serious consequences. The authorities have sent warning letters to 540 building owners in Amsterdam and surrounding areas. Of those, 39 have been threatened with fines for not meeting the energy label requirements. Eleven have already been fined, with penalties of 2,000 euros per week, up to 20,000 euros. If owners fail to comply, they could face higher fines or even office closures—though no closures have occurred yet.

Banks are also refusing to finance buildings with subpar energy ratings, making the situation even more urgent. "Owners didn’t expect enforcement to be so quick," said Claire van Staaij, sector banker at ABN Amro, to Parool. "Many think they can get away with it, but they risk significant financial loss if they don’t act."

Offices that don’t meet sustainability standards face higher vacancy rates. NVM Business, a real estate group, reports that offices with ratings below A are becoming increasingly difficult to rent out. In 2024, 800,000 square meters of office space with energy label A or higher were leased, while 200,000 square meters with insufficient labels remained empty.

However, not all non-compliant offices will face penalties. Offices that are vacant or being converted into residential space can receive a two-year exemption from compliance. In some cases, converting offices into housing is more cost-effective than upgrading them to meet energy label C.

The energy label requirement will reportedly tighten in 2030, when offices will need to meet label A. While the government has yet to make this mandatory, Van Staaij believes the market will adjust ahead of time. "Banks are already refusing to finance buildings that don’t meet sustainability standards," she said. "The pressure to comply will only increase."