Office Availability Has Dropped Again in Lausanne

MARKETVIEW SNAPSHOT LAUSANNE OFFICE, Q2 2019

Lausanne Office, Q2 2019 Office availability has dropped again in Lausanne

Figure 1: Availability and median rent in City of Lausanne AVAILABILITY & RENTS MARKET SUMMARY Q2 2019 Office availability in Lausanne has further reduced in 70,000 300 Q2 2019, specifically in the CBD where large vacant CITY OF LAUSANNE 60,000 290 surfaces remain scarce. At the same time, demand keeps robust on this segment, as mirrored with the 50,000 280 lease of more than 3,500 sq m in Rue Neuve 3, quickly after the departure of Purina. Those well- 45,000 sq m 40,000 270 located offers are sought-after even in the suburbs, as seen with a few deals near Renens’ station. This Offre (in sq m)sq (in Offre 30,000 260 Availability tension between supply and demand in Lausanne

20,000 250 has led to a slight growth of median rents. Rents (CHF/sq m p.a.)m (CHF/sqRents The availability rate in the West of Lausanne has 10,000 240 2.8% slightly picked up, such as in Crissier, as more and Availability rate 0 230 more small units are being vacated. This plays in T2 16 T4 16 T2 17 T4 17 T4 18 T2 19 favour of new and more efficient premises. Available office space Median rent Office markets in la Côte keep higher vacancy rates, except from Nyon at 4.1%. CHF 295/sq m p.a. Source: CBRE Research, 2019 Median asking rent Figure 2: Development pipeline in Lausanne and its region PIPELINE (West of Lausanne, La Côte) The wave of schemes set to be delivered in the next five years will upgrade the office stock with a total of CHF 450/sq m p.a. 100,000 250,000 sq m (9% of the current stock). Around two- third of them are located in the West of Lausanne Prime rent 80,000 (Renens, Crissier, Bussigny). This should bring new large available surfaces on the market. Although 60,000 more than half of the space under construction is already pre-let, the remaining vacant area may well 40,000

252,000 sq m create a fierce competition on the market. Office space (in sq m)sq (in spaceOffice New developments by 2023* 20,000 Yet if we exclude the railway station areas, it is not clear whether all of these projects will attract a 0 substantial demand. Occupiers are mostly focusing 2019 2020 2021 2022 2023 on central locations, with Lausanne and its CBD often coming in first place. Pre-let Available Trend compared to previous semester In the long term, the regeneration of the station area *New developments for the Lausanne region and La Côte Source: CBRE Research, 2019 in Lausanne (La Rasude) will add high-quality office supply that is missing in the city centre today.

Figure 3: Lausanne submarkets Figure 4: Office market key data Submarket Availability Availability rate Representative asking rents* Ø Median asking rents (in sq m) (%) (CHF/sq m p.a.) (CHF/sq mp.a.) Lausanne CBD 18’000 2.5 270-410 330 Lausanne South 9’000 2.8 290-390 320 Lausanne West 9’000 4.8 220-305 250 Lausanne North 3’000 1.9 190-270 225 Lausanne North-East 5’000 2.9 215-355 250 Lausanne East 1’000 2.7 250-340 305 City of Lausanne 45’000 2.8 190-410 295 Crissier 9’000 10.2 180-270 215 Bussigny 7’000 11.9 170-240 215 Renens-Prilly 12’000 5.4 210-310 275 Other West L.** 7’000 2.9 175-240 210 West of Lausannois 35’000 5.7 170-310 235 Morges 18’000 12.3 250-330 280 Nyon 9’000 4.1 200-335 280 Rolle-Etoy 21’000 25.0 210-310 270 Gland 12’000 16.3 200-275 235 La Côte 60’000 11.5 200-335 265

*The range of asking prices excludes the highest and lowest 10% and may have been adapted according to the data quality.**Chavannes-près-Renens, Ecublens. Source: CBRE Research, 2019

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The cutoff date for the availability and rent data was June 3rd, 2019. Only rental CBRE Disclaimer 2019 CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we space offering more than 50 sq m and available within three months were have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written included in our statistics. permission of CBRE.