Office Supply Remains Scarce in Lausanne

MARKETVIEW SNAPSHOT LAUSANNE OFFICE, Q2 2020

Lausanne Office, Q2 2020 Office supply remains scarce in Lausanne

Figure 1: Availability and median asking rent in the city of Lausanne AVAILABILITY MARKET SUMMARY Q2 2020 70,000 320 The office vacancy rate in Lausanne has kept CITY OF LAUSANNE standing below 3.0% over the past couple of years, 60,000 310 mirroring a positive market absorption capacity, especially in the CBD. Despite the COVID-19 crisis, 43,000 sq m 50,000 300 start-ups and EPFL’s spin-offs have enjoyed above- 40,000 290 average employment growth generating demand for Availability office space expansion into larger premises. At the 30,000 280 same time, limited new construction activity in

Lausanne has continued to push larger companies to Office space (in sq m)sq (in spaceOffice 2.7% 20,000 270 mp.a.) CHF/sq (in Rent relocate into more affordable and qualitative buildings in the western part of the agglomeration. 10,000 260 Availability rate Admittedly modern available space remains scarce in 0 250 Lausanne and its suburbs, but old and obsolete Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 Q2 20 vacant office stock is increasing. In La Côte, supply remains an issue in remote areas, where rental CHF 300/sq m p.a. Availability Median asking rent adjustments are needed to attract potential tenants. Median asking rent Source: CBRE Research, 2020

Figure 2: Pipeline in the city of Lausanne, West of Lausanne and La Côte (new builds) PIPELINE In the light of the current pipeline, future supply in CHF 430/sq m p.a. 160,000 Lausanne should remain low in the near to medium Prime rent 140,000 term. At the same time, a wave of new projects is 120,000 expected to fuel the market in the West of Lausanne from 2020 to 2024, representing more than 180,000 31,000 sq m 100,000 sq m. Among them, major developments under 80,000 construction around the main train stations show Developments by 2024 high pre-lease rates as they have been attracting

60,000 large corporates willing to consolidate their Office space (in sq m)sq (in spaceOffice 40,000 workplaces in a one-roof and well-connected location. However, other projects in peripheral areas 295,000 sq m 20,000 are still waiting for significant pre-lease rates before Developments in the region by 2024* 0 being launched. 2020 2021 2022 2023 2024 In the long term, the La Rasude project should Trend compared to previous semester Pre-let Not let eventually provide large new office space in *Incl. city of Lausanne, West of Lausanne and La Côte Source: CBRE Research, 2020 Lausanne CBD. The West of Lausanne will see a gradual completion of an entire new district in Malley from 2024 onward. Q2 2020 CBRE Research © 2020, CBRE Switzerland MARKETVIEW SNAPSHOT LAUSANNE OFFICE, Q2 2020

Figure 3: Lausanne submarkets Figure 4: Office market key data Submarket Availability Availability rate Range of asking rents* Median asking rent (in sq m) (in %) (in CHF/sq m p.a.) (in CHF/sq m p.a.) Lausanne CBD 12,000 1.7 270-430 340 Lausanne South 4,000 1.3 250-370 295 Lausanne West 10,000 5.4 200-305 250 Lausanne North 7,000 4.4 210-250 235 Lausanne North/East** 12,000 5.3 200-350 270 Lausanne East 1’000 1.9 200-320 n/a City of Lausanne 46,000 2.7 300 Crissier 7,000 6.6 180-270 210 Bussigny 3,000 5.5 160-260 210 Renens-Prilly 9,000 4.1 180-340 240 Other West L.*** 8,000 3.4 170-280 215 West of Lausanne 27,000 4.4 225 Morges 12,000 7.4 200-330 280 Nyon 13,000 5.6 200-350 275 Rolle-Etoy 16,000 19.0 195-260 245 Gland 8,000 10.5 170-290 220 La Côte 49,000 8.9 265 *The range of asking prices excludes the highest and lowest 10% and may have been adapted according to the data quality. **Lausanne North/East: incl. Biopôle ***Chavannes-près-Renens, Ecublens Source: CBRE Research, 2020

FOR MORE DETAILED INFORMATION PLEASE CONTACT OUR EXPERTS Julien Scarpa François Yenny Research & Consulting Research & Consulting [email protected] [email protected]

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th CBRE Disclaimer 2020 The cutoff date for the availability and rent data was July 17 , 2020. Only rental 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.