Switzerland’s Office Vacancy Rates Rise as Construction Continues

Vacant office space in Switzerland‘s five largest cities—Zurich, Geneva, Bern, Basel, and Lausanne—increased by 9% in 2024 compared to the previous year, according to a study by real estate consultants Jones Lang LaSalle AG (JLL). The report, published on Tuesday, highlights a growing trend of empty office spaces despite ongoing construction of new buildings.

The average supply ratio of vacant office space has been rising steadily since 2019, when remote work began gaining traction. Between 2020 and 2024, 1.16 million square meters of new office space were added, while the supply of vacant space grew by 231,000 square meters. Despite this, Switzerland’s vacancy rates remain lower than the European average, which saw a 3.3 percentage point increase to 8.5% in 24 major cities during the same period.

Construction activity in Switzerland’s office market peaked in 2020 and has since declined. However, JLL experts predict a resurgence in office construction between 2025 and 2027, with office stock expected to grow by 1% annually. Regional differences are significant, with Geneva and Bern likely to see more new office spaces, while Zurich and Basel may experience slower growth.

Modern, flexible, and sustainable office spaces with good transport connections remain in demand. Older buildings without nearby train stations are struggling to attract tenants. Jan Eckert, head of Switzerland and capital markets at JLL, noted that investors remain cautious due to uncertainties around flexible work arrangements. However, robust economic and employment growth in Switzerland continue to support demand for office space.

“We are noticing this trend in both the quantity and quality of incoming bids. The short-term prospects are more favorable than they have been for three years,” Eckert said. The study underscores the challenges and opportunities in Switzerland’s evolving office market as it adapts to changing workplace trends.