Offices: More vacant space in Zurich, more deals in Geneva
The supply of space in Switzerland's largest office market, the city of Zurich, rose for the first time since the third quarter of 2015. In Geneva, on the other hand, the supply ratio fell. These are the findings of CBRE's latest office market report.
Compared to the previous quarter, supply in the city of Zurich increased by 22,000 sqm from 263,000 sqm to 285,000 sqm, corresponding to a supply ratio of 3.8 percent. In the CBD, the supply ratio is as high as 5.2 percent, 0.6 percentage points higher than in the last survey. Currently, 96,000 sqm of office space is available, up from 85,000 sqm in the previous quarter. Due to weak demand in the top price segment, prime rents fell again, while average rents stabilized.
In Geneva, CBRE's researchers recorded a slight decline of 4.7 percent in available space compared with the previous quarter, from 172,000 sqm to 164,000 sqm. Nevertheless, the supply ratio remains at a high level of 6.3 percent. Rental prices remain under pressure due to the oversupply of space coupled with rather low demand. Price corrections have taken place in the CBD in particular, which is why more leases have been signed, according to CBRE. The researchers expect this trend to continue.
The office market in Basel continues to be characterized by a shortage of large spaces. At 50,000 sqm and a rate of 2.2 percent, supply thus remains at a very low level. In view of the active and sustained demand on the Basel office market and in comparison with Zurich and Geneva, rental prices in Basel are at a relatively low level. CBRE therefore expects rents for new space in the city area to rise slightly in the near future.
In the city of Bern, 98,000 sqm of office space is on offer, with the Kirchenfeld/Schosshalde market area alone accounting for over 40,000 sqm - predominantly the vacated Swisscom space. The supply ratio in the city of Bern is 3.7 percent. Due to the demand for modern and centrally located office space, CBRE experts expect rents in central locations to rise slightly. By contrast, rents for older properties are expected to decline.
In Lausanne, the smallest of the office markets under review, the supply of office space is 55,000 sqm. At 2.9%, the supply ratio is at a moderate level. The rental price range in the city is between CHF 200 and 410/sq m/p.a. CBRE expects rents to remain stable. (ah)
