Ericsson is relocating from Kista to central Stockholm, marking the largest office lease in Swedish history.

      The Hagastaden campus, covering 71,000 square metres and developed in collaboration with Atrium Ljungberg and Castellum, marks the end of over twenty years in Kista, which was once known as Sweden's Silicon Valley.

      Ericsson will be relocating its global headquarters from Kista, announcing on Monday that it plans to gradually shift its Stockholm operations—encompassing the headquarters, R&D functions, group functions, and the Imagine Studio showcase space—to a new campus in Hagastaden, north of central Stockholm, starting in 2028.

      The scale of this relocation is significant. Through new leases with Atrium Ljungberg and Castellum, along with an earlier agreement with Castellum for the Infinity property, the company will occupy approximately 71,000 square metres in Hagastaden across six buildings.

      The arrangement with Atrium Ljungberg alone consists of three buildings totaling 58,000 square metres under a 15-year contract, which the landlord claims is the largest office lease in Swedish history and the biggest known office deal in Europe this year.

      Annual rent to Atrium Ljungberg is projected to be around 360 million kronor ($39 million) at 2026 levels. Castellum’s new spaces, the 9,500-square-metre Emerald House and the 3,500-square-metre Jubileumshuset, have an annual rental value of about 80 million kronor, as stated in the company’s release. This is in addition to the previously signed 24,000-square-metre Infinity contract, expected to be ready by late 2027.

      Börje Ekholm, CEO of Ericsson, indicated that the relocation is aimed at talent acquisition. “Situated in the heart of the city’s technology collaboration and innovation ecosystem, with easy access to our evolving business network, partners, and decision-makers, Hagastaden is clearly the optimal location for our future operations,” he stated in the company’s announcement. “A vibrant city campus will enhance our ability to attract top talent moving forward.”

      This indicates that the Kista strategy is no longer viable. For thirty years, Kista has promoted itself as Sweden's Silicon Valley, with Ericsson's presence as the cornerstone of that narrative. However, that narrative has been weakening in recent years, with office vacancy rates in Kista reaching 26.7% in the first quarter of 2026, more than double that of central Stockholm, according to data from Colliers reported by Bloomberg.

      Facility management company Coor Service Management also announced its exit from Kista in late 2024, citing security concerns; incidents involving organized crime in the area have frequently surfaced in Swedish business news.

      While Ericsson's lease did not specify these issues, the necessity for a new campus is evident. The agreement is a significant win for both landlords, with Atrium Ljungberg shares rising by as much as 5.1% on Monday, marking the highest increase since April 8, and Castellum gaining 2.1%.

      Viktor Byrenius, an analyst at Pareto Securities, remarked to Bloomberg that these agreements represent “a sign of strength” for Atrium Ljungberg, which has been grappling with high vacancy rates in the Stockholm area. The Hagastaden lease will notably alter the occupancy outlook for the next decade and a half.

      For Ericsson, the move comes amid recent quieter financial reports. The company narrowly missed Q1 profit estimates in April, as the North American 5G upgrade cycle that propelled 2024 and early 2025 is beginning to wind down. The workforce in Sweden has been decreasing, with approximately 1,200 jobs cut locally last year.

      The Hagastaden campus is being designed for a more compact and central operation compared to the extensive Kista space it will replace, reflecting a strategic shift. The transition will be gradual and extended, starting in early 2028 and taking several years to complete.

      The Infinity building is expected to be finished by late 2027, while the remainder of the Hagastaden campus is still under construction, situated atop a deck built over one of the city’s key highways. By the time the move is completed, Ericsson's final ties to Kista will effectively be severed.