The positive economic growth and significant reticence to construct new property resulted in a stabilisation of the office market in most regions. A total of approximately 1.75 million m² of office space was available within six months in the Swiss agglomerations. This represents a decline of 4% compared with the previous year. The Zurich agglomeration registered the largest supply of 560,000 m2 in 2018, followed by Geneva with a supply of around 412,000 m2. The Lausanne, Bern and Basel agglomerations trailed behind with significantly lower supplies.

While the change in supply showed regional variations, there was a new development in terms of rents. The median figure did not increase in a single agglomeration in 2018, with quoted rents remaining stable at best. The sound economic fundamentals conceal the fact that the Swiss office market remains a tenant’s market. The rising demand is primarily concentrated in central locations or up-and-coming districts of the economic centres. Locations with poor public transport links and properties that do not meet the flexible criteria of the changing working environment are struggling to find new tenants.

Furthermore, owing to valuation mechanisms, owners maintained their rental levels despite the tepid demand in recent years, preferring to make concessions in the form of incentives such as capital contributions towards fit-out and rentfree periods. With occupiers’ willingness to pay remaining limited, quoted rents are falling nationwide. This trend will also continue in 2019.