Ericsson is leaving the suburb that defined its modern identity. After more than two decades anchored in Kista, the Swedish telecom equipment maker will relocate its global headquarters and Stockholm operations to Hagastaden. The phased move begins in early 2028. It stretches across several years.
The decision, announced May 25, 2026, marks the end of an era. Kista once stood as Sweden’s Silicon Valley. Now it grapples with high vacancy rates and security worries. Hagastaden, on the northern edge of central Stockholm, promises a denser, more connected campus. One built for collaboration. For talent competition. For the demands of a company reshaping itself amid slowing 5G cycles and cost pressures.
From Suburban Campus to Urban Innovation Hub
The new footprint totals roughly 71,000 square meters across six buildings. Ericsson signed leases with Atrium Ljungberg and Castellum. Three properties from Atrium Ljungberg — Wave at 22,000 square meters, Corner of Ekeblad at 23,000 square meters, and Trinity at 13,000 square meters — form the bulk at 58,000 square meters on a 15-year deal. The Next Web reports this as the largest office lease in Swedish history. Annual rent to Atrium Ljungberg reaches about 360 million kronor, or $39 million at current levels.
Castellum adds Emerald House at 9,500 square meters and Jubileumshuset at 3,500 square meters, with rental value near 80 million kronor yearly. A prior agreement covers the 24,000-square-meter Infinity building, ready by late 2027. The full campus sits on a deck above a major highway. Construction continues on several sites.
Börje Ekholm, Ericsson’s chief executive, framed the choice directly. “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 press release. “A thriving city campus will also strengthen our attraction for the top talent of the future.” (PR Newswire)
The facilities will house headquarters functions, research and development, business areas, group operations, and the Imagine Studio technology showcase. Executives envision modern spaces that encourage interaction. That draw engineers and specialists who might otherwise look elsewhere. Sweden faces accelerating loss of skilled workers in engineering and IT, according to recent reports. Ericsson itself proposed cutting up to 1,600 jobs in Sweden in January 2026 — about 12% of its domestic headcount — as part of ongoing efficiency efforts. (AInvest)
And the timing matters. Ericsson’s Swedish workforce has already shrunk. The company cut 1,200 positions last year. North American 5G spending has cooled after years of heavy investment. First-quarter 2026 results showed a narrow miss on profit expectations. Against that backdrop, maintaining a sprawling suburban campus no longer fits. The new setup supports a smaller, more centralized operation. One aligned with current realities.
Kista’s challenges accelerated the exit. Office vacancy hit 26.7% in the first quarter of 2026. More than double the rate in central Stockholm. Service firm Coor Service Management departed the area in late 2024, citing security concerns. Reports of organized crime activity have circulated. Once a magnet for tech, the suburb now risks becoming a shadow of its former self. “Kista är i fritt fall,” one local observer noted on social media. The whole area could turn into a ghost town.
Property owners reacted with relief. Atrium Ljungberg shares climbed 5.1% on the news. Castellum gained 2.1%. Analysts viewed the deal as validation for developers betting on Hagastaden’s growth. The area represents one of Stockholm’s major urban development projects. Its proximity to the city center, universities, and decision-makers offers clear advantages over Kista’s isolation.
Yet questions linger about what this signals for Ericsson’s long-term posture in Sweden. Ekholm himself floated the possibility of moving the global headquarters to the United States in late 2024, suggesting Europe struggles to match competitors on innovation and policy. The Kista exit, while framed around talent and collaboration, fits a pattern of contraction at home. Trailing net income stands near $2.9 billion on quarterly revenue of about $5.5 billion. Resources are being reallocated. The lease math — roughly 6,200 kronor per square meter annually — reflects premium urban pricing for premium expectations.
Ericsson’s history with Kista runs deep. The company shifted headquarters functions there in the early 2000s seeking efficiency and lower costs. It became the heart of Swedish telecom innovation. Nokia, other firms, and startups clustered nearby. That ecosystem delivered for years. But markets change. Technology demands evolve. Talent wants different things.
Hagastaden won’t replicate Kista’s scale. It doesn’t need to. The plan calls for focused, high-collaboration spaces. Easier access to partners. Shorter commutes for many employees. And a setting that projects forward momentum rather than past glory. “We have carefully evaluated the type of office and location which will best meet the future needs of the company and our employees in the Stockholm area,” Ekholm added.
The transition will unfold gradually. First occupants could arrive in the Infinity building by late 2027. Full departure from Kista extends well into the 2030s. Leases there run only a few years more in some cases. This measured pace gives both sides time to adjust. Employees. Real estate owners. The surrounding business community.
But the direction is set. Ericsson is betting on urban density and proximity over suburban campus life. On attracting the next generation of engineers in a competitive global market. On adapting its physical presence to match its business pressures. Kista’s loss is Hagastaden’s gain. For the telecom industry, the move offers a case study in how even iconic locations must yield when conditions shift.
Bloomberg noted the contrast sharply. Ericsson quits a suburb once touted as Sweden’s Silicon Valley for a developing district closer to the action. (Bloomberg) The symbolism runs deep. Companies don’t abandon historic bases lightly. When they do, it usually reflects fundamental recalibration.
So Ericsson heads downtown — or as close as a major campus can get. The new buildings will feature flexible designs. Shared spaces. Technology demonstrations that impress customers and partners. Whether this yields the talent edge executives seek remains to be seen. But the commitment is concrete. Fifteen years for the core lease. Millions in annual rent. A clear signal that the future lies in Hagastaden.
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