Office market Zurich

Review and Outlook

The supply of available office space in the Zurich region decreased by 52,900 m2 in 2022 and currently stands at 361,000 m2. A smaller influx of newly constructed office space and overall robust demand explain the contraction. The availability rate fell to 4.5% as of end 2022 from 5.1% a year earlier.

This chapter is part of the Office Market Study 2023 by JLL Switzerland

Scarcity of office space in city of Zurich worsens

The biggest contractions in available office space were registered in District 11 (–26,400 m2), District 4 (–9,500 m2) and District 5 (–8,400 m2). In Oerlikon, management and technology consulting firm AWK Group leased 5,400 m2 of office space in the Next 11 building and SMG Swiss Marketplace Group moved into offices in the Maintower complex.

Industrial insurer HDI and Crypto Finance moved into the Prime Tower, and the University of Zurich likewise secured space in District 5, leasing 5,650 m2 in the West-Park office building. Blockchain technology firm DFINITY leased 2,000 m2 in Zurich’s Enge district, and asset manager Zwei Wealth and co-working space providers Office LAB and Headsquarter also chose to locate in this neighbourhood. These leasings and others reduced the office space availability rate in the city of Zurich from 3.4% to 2.6%.

Prime rent continues to rise

Some exclusive office spaces in prime locations such as in the Weisses Schloss, the Brannhof and the former Modissa building came onto the market last year, which caused the average prime rent price in Zurich to rise. It now stands at a net CHF 925 per m2 per annum.

Almost 71,000 m2 of new-build office space is scheduled to be completed in the Zurich region in 2023. This is still below the long-term average of 90'000 m2 of completed new-build office space per annum (from 2012 through 2022). The volume will turn out even lower in 2024 and 2025. The vacancy rate can therefore be expected to stay at a low level in the city area.

Office market study Switzerland 2023

You can find the entire office market study Switzerland 2023 here. The report provides comprehensive insight on the office space markets in Zurich, Geneva, Bern, Lausanne, Basel and Zug. In addition to providing key data and reporting on the most significant changes in Switzerland’s largest market areas, the office market study also highlights some regional idiosyncrasies and presents a brief digression on Europe.