Office market Zug

The supply of available office space in the Zug region decreased by 29% year-on-year (–16,400 m²) and currently amounts to 39,500 m². The availability rate fell in the span of a year from 4.3% to 3.0% as of end-2023.

Vacancies decrease in Baar and Rotkreuz

The biggest contraction in office-space availability occurred in Baar (−8,300 m²) and Rotkreuz (−3,700 m²). The city of Zug remains the area with the least vacant office space, with a vacancy rate of 1.4%. The tightening supply in lockstep with sustained robust demand is buttressing rent price growth in the Zug region. Prime rents of up to CHF 550 per m² per annum are achievable in the city of Zug for buildings with modern, high-grade office spaces.

Oncology company Novocure will move from Root into the newbuild Neuhof 21 complex in Baar, where it will utilize around 5,000 m² of office space. The announced job cuts at Biogen Idec reduced that company’s need for office space in Baar, but the freed-up space in the Quadrolith 1 building was re-leased almost seamlessly to Alexion, which has given up its headquarters in Zurich in the wake of being acquired by AstraZeneca and will now conduct its business operations on the premises of its new parent company in Baar. Pharmaceutical companies GSK and Medison have also found new office locations in Baar, as has Mars Switzerland Ltd.

Business centres on the rise

Flex space operator Signature by Regus is offering around 3,000 m² of fitted-out office space at Baarerstrasse 52 that was previously used by Nord Stream 2. Another flex space operator, Westhive, opened a 2,000 m² business centre on the Zug Tech Cluster site.

Little newbuild office space in the near term

In the near future, the supply of available office space in the Zug region will likely stay stuck at a lower level than in the past. Little unleased newbuild space will come onto the market before 2026. Afterwards, though, the pipeline for the period from 2026 through 2028 is brimming with over 100,000 m² of additional office space, including multiple stages of the Tech Cluster in Zug and the Unterfeld complex in Baar, the last construction lots on the Suurstoffi site in Rotkreuz, and Building F in the third construction stage on the Papieri site in Cham. Space for further economic growth in the Zug region is thus secured for the medium term.