The 71,000-square-metre Hagastaden campus, signed with Atrium Ljungberg and Castellum, ends more than two decades in the suburb once branded Sweden’s Silicon Valley.

Ericsson is moving its global headquarters out of Kista. The Swedish telecoms-equipment maker said on Monday that, starting in 2028, it will gradually relocate its Stockholm operations, including the HQ, R&D functions, group functions, and the Imagine Studio showcase space, to a new city campus in the Hagastaden district, north of central Stockholm.

The numbers attached to the move are substantial. Across new leases with Atrium Ljungberg and Castellum, plus a Castellum agreement Ericsson signed earlier for the Infinity property, the company will occupy roughly 71,000 square metres in Hagastaden across six buildings.

Atrium Ljungberg’s portion alone, three buildings totalling 58,000 square metres on a 15-year contract, is described by the landlord as the largest office lease in Swedish history and the largest known office deal in Europe so far this year.

Annual rent to Atrium Ljungberg lands at about 360m kronor ($39m) at 2026 levels.

Castellum’s new pieces, the 9,500-square-metre Emerald House and the 3,500-square-metre Jubileumshuset, carry an annual rental value of roughly 80m kronor, according to the company’s release.

That sits on top of the 24,000-square-metre Infinity contract Castellum signed previously, expected to be ready by late 2027.

Börje Ekholm, Ericsson’s chief executive, framed the move in talent terms.

“With a vibrant location in the heart of the city’s technology collaboration and innovation community, including easy access to our changing business ecosystem, partners and decision makers, Hagastaden is clearly best-placed to address our future operations,” he said in the company’s statement.

“A thriving city campus will also strengthen our attraction for the top talent of the future.”

The translation is that the Kista calculation no longer works. The suburb in northern Stockholm has spent thirty years marketing itself as Sweden’s Silicon Valley, with Ericsson’s presence as the central evidence.

That story has been deteriorating for several years. Office vacancy rates in Kista ran at 26.7% in the first quarter of 2026, more than double the central Stockholm rate, according to Colliers data cited by Bloomberg.

The facility-management firm Coor Service Management announced its own departure from Kista in late 2024, citing security concerns; reports of organised-crime activity in the surrounding area have become a recurring feature of Swedish business coverage.

Ericsson’s lease did not name those factors, but the campus calculus is unmistakable.

The deal is a clear positive for the two landlords. Atrium Ljungberg shares rose as much as 5.1% on Monday, the most since April 8, and Castellum gained 2.1%.

Pareto Securities analyst Viktor Byrenius told Bloomberg the agreements were “a sign of strength” for Atrium Ljungberg, which has been working through elevated vacancy across the Stockholm region.

The Hagastaden lease materially shifts that occupancy story for the next decade and a half.

For Ericsson, the move comes against a quieter recent set of financial prints. The company narrowly missed Q1 profit estimates in April, as the North American 5G upgrade cycle that drove 2024 and early 2025 began to unwind.

Headcount in Sweden has been declining; the company cut roughly 1,200 jobs locally last year.

The Hagastaden campus is being designed for a smaller, denser, more central operation than the sprawling Kista footprint it replaces, which is its own form of strategy statement.

Move-in is phased and slow. Ericsson said the process will begin in early 2028 and run for several years.

The Infinity building is due late 2027; the rest of the Hagastaden campus is still under construction, on a deck built above one of the city’s major highways. By the time the relocation is complete, Ericsson’s last fixed link to Kista will, in practical terms, be gone.