(12.10.2022) The spread of telecommuting has resulted in a decrease in the need for commercial space. According to the Swiss Contractors' Association (SBV), the nationwide vacancy rate for office space is 5.4% (compared to 1.6% for residential buildings).
The telecommuting rate has steadily increased from 18.2% in 2013 to 24.6% in 2019. With the health crisis, the trend gained considerable momentum, so that by 2021, it rose to 39.6%.
According to the report's authors, the supply of office real estate exceeds demand across the country, with 5.4% of commercial space available for lease. Between 2019 and 2021, the net return on commercial real estate fell in all categories of premises. For example, Class A offices which are characterized by an optimal location and qualitative infrastructure recorded a 0.5% decline in revenues. However, yields are expected to stabilize in 2022 due to increased demand following the end of the health crisis.
In urban centers, where most commercial space is concentrated, the vacancy rate is often higher than average: 12.3% in Geneva, 10.1% in Baden (AG), 8.8% in Basel, 8.7% in Zug and 8.2% in Lausanne. Other cities, like Biel (4.3%), Thun (3.1%), Sion (1.6%) and Fribourg (1.3%) have much lower vacancy rates.
By 2060, however, Credit Suisse and the SBV forecast an increase in the need for office space. The digitization of certain activities, which will no longer take place in industrial halls, showrooms, or hospitals, could result in an increase in the number of office-based jobs. While the rise of telecommuting is projected to decrease demand for workspace by 15% in the next 40 years or less, the digitization of these sectors could result in a 32% increase in demand, according to the projection.
Last modification 12.10.2022
