Geneva Office Market Profile - Q1 2019
The Geneva leasing market remains a challenging one but there are also positive signs. The supply of available office space in the Geneva region declined by 4.1% in Q1 2019 to around 188,000 m², which equates to an availability rate of 5.4%.
Among other, market conditions in the city centre have improved in the last quarters. Geneva’s city centre had been hit in recent years by numerous moves undertaken by financial institutions and consultancy firms to consolidate mid- and back-office jobs in modern, large-scale office premises outside the CBD. This trend is subsiding now and vacant space has been renovated and is slowly filling up again.
A total of 24,500 m² of office space is currently available for lease on the left bank of the Rhone in Geneva’s CBD. That equates to an availability rate of 3.9%. CBD vacancies have remained more or less stable since beginning of the year but have markedly declined on a year-on-year comparison. Prime rents in the CBD paint a similar picture. They picked up slightly last year and remained stable at approximately CHF 810/m² per annum in Q1 2019.
The picture looks different in peripheral locations in the airport region and in Petit-Lancy. Similar to what has happened in other Swiss cities, the new CEVA rail line and its stations (Lancy-Pont Rouge, etc.) will lastingly shape the Geneva office market. It will cause demand for office space to concentrate more densely in ideal office locations. Large older buildings in less well-connected locations will particularly be exposed to intensifying predatory competition, including certain office spaces in the airport region, where vacancy rates today are already relatively high.