Ericsson will relocate its global headquarters and key operations from the Kista suburb, historically dubbed Sweden’s Silicon Valley, to a new 71,000-square-metre campus in Stockholm’s Hagastaden district. This move involves the largest office lease ever recorded in Sweden and signals a shift toward a more central, talent-focused presence in the capital.
- Ericsson signs 71,000 sq m lease in Stockholm’s Hagastaden, largest ever in Sweden.
- Move driven by talent attraction and urban tech community access.
- Relocation starts 2028, phased over several years, exiting Kista suburb.
What happened
Ericsson announced it will relocate its global headquarters and major operations from the Kista district to a newly developed campus in the Hagastaden area of Stockholm starting in 2028. The company secured a record-setting office lease covering about 71,000 square metres across six buildings by agreements with Atrium Ljungberg and Castellum. This move ends more than two decades of Ericsson’s presence in Kista, historically promoted as Sweden’s Silicon Valley.
The lease includes a 15-year contract with Atrium Ljungberg covering 58,000 square metres and smaller leases with Castellum for the Emerald House, Jubileumshuset, and a previously signed Infinity building due late 2027. The annual combined rent is approximately 440 million Swedish kronor (around $47 million). Ericsson will relocate its headquarters, R&D, group functions, and innovation center known as the Imagine Studio to this more central location in Stockholm.
Why it matters
The move reflects broader strategic considerations as Kista faces rising office vacancy rates—reported at more than 26% in early 2026—and ongoing security challenges linked to organised crime in the surrounding area. Ericsson’s leadership framed the relocation as a way to strengthen access to Stockholm’s urban technology and innovation environment, helping attract and retain top talent by situating itself closer to partners, decision makers, and the business ecosystem.
For the real estate landlords Atrium Ljungberg and Castellum, the deal is highly significant, marking the largest office lease in Sweden’s history and boosting occupancy amid a regional office market flush with vacancies. Investor response was positive, with Atrium Ljungberg shares rising over 5% following the announcement. For Ericsson, the move signals a shift to a more compact, centralized headquarters to better align with evolving business and operational needs, despite recent financial pressures and workforce reductions.
What to watch next
The phased relocation process will begin in early 2028 and is expected to extend over several years as construction of the Hagastaden campus continues. Key milestones include the completion of the Infinity building in late 2027. Observers should track how successfully Ericsson manages this transition while maintaining operational continuity, especially amid its evolving 5G market dynamics and workforce changes in Sweden.
Additionally, the impact on Kista as a tech hub is notable, as Ericsson’s departure may challenge the area’s Silicon Valley branding and prompt renewed questions about regional office demand and urban security. Monitoring Stockholm’s urban development and innovation ecosystem growth around Hagastaden will provide insight into the long-term benefits Ericsson anticipates from this move.