Zurich Office, Q4 2019

MARKETVIEW SNAPSHOT ZURICH OFFICE, Q4 2019

Zurich Office, Q4 2019 Office availability in the city decreased by 56,000 sq m in 2019

Figure 1: Availability and median asking rent in the City of Zurich AVAILABILITY MARKET SUMMARY Q4 2019 400 400 The recovery of the office market continued on a CITY OF ZURICH broad front in H2 2019. In line with this, the office 350 360 supply in the City of Zurich decreased by 56,000 320 sq m just in 2019, which translates into a decrease

m) 300 .)

sq 280 206,000 sq m p.a of the availability rate from 3.6% to 2.7%. The

250 240 m strongest declines were recorded in the submarkets sq

Availability ,000 (in 200 200 of Altstetten (-15,000 sq m) and Zurich North (-8,000 sq m). A positive development for prospective

space 160 150 tenants, however, is the return of a growing number

120 / CHF (in Rent Oiffce of offers from 1,000 sq m. 2.7% 100 80 In the second half of the year, the CBD was left with Availability rate 50 40 a structural vacancy of older space and therefore 0 0 only recorded a weak net absorption and even a Q2 14 Q4 14 Q2 15 Q4 15 Q2 16 Q4 16 Q2 17 Q4 17 Q2 18 Q4 18 Q2 19 Q4 19 minimal decline in the median asking rent. The top CHF 345/sq m p.a. rent, on the other hand, exceeded the 850 / sq m p.a. Availability Median asking rent mark for the first time in five years. Median asking rent Source: CBRE Research, 2020 CHF 850/sq m p.a. Figure 2: Pipeline in the City of Zurich, Limmattal and Airport regions PIPELINE 250,000 Almost 200,000 sq m of new space will be completed Prime rent in 2020, of which around two thirds have already been pre-let. More than half of the 2020 pipeline will 200,000 be delivered in the airport area, which already is

affected by a high availability rate of 17.2%. This

m) sq

140,000 sq m ( 150,000 means that the expansion of supply in this particular market will continue to progress slightly

Developments by 2022 space in the short term, even if the city outskirts are 100,000

Office currently benefiting strongly from the tense situation in the core city and thus from a much 297,000 sq m 50,000 better demand. Developments in the region by 2022* The construction pipeline is much calmer for the 0 coming years from 2021 onwards, when a significant 2020 2021 2022 recovery is also likely to set in in the periphery, Trend compared to previous quarter Pre-let Not let provided the general economic situation remains *Incl. City of Zurich, Limmattal and Airport regions Source: CBRE Research, 2020 positive.

Figure 3: Zurich Submarkets Figure 4: Office market key data

Submarkets Availability Availability rate Range of asking rents* Median asking rent (in sq m) (in %) (in CHF/sq m pa.a.) (in CHF/sq m p.a.) CBD 67,000 3.7 390-660 500 Zurich West 7,000 0.7 240-500 320 Altstetten 35,000 3.1 180-310 220 Zurich North 66,000 6.2 200-330 270 Wiedikon, Binz 7,000 1.2 210-320 270 Hard, Sihlfeld 3,000 1.7 230-330 250 Europaallee, Langstrasse, Werd 7,000 1.5 260-600 450 Oberstrass, Unterstrass 4,000 1.2 330-450 350 Further submarkets 9,000 1.0 200-460 310

City of Zurich Total 206,000Source: CBRE, Q4 2016 2.7 345 Limmattal (Dietikon, Schlieren, Urdorf) 57,000 12.0 140-230 170 Airport (Kloten, Rümlang, Opfikon/Glattbrugg, Wallisellen) 157,000 17.2 150-310 200

*The range of asking prices excludes the highest and lowest 10% and may have been adapted according to the data quality. Source: CBRE Research, 2020

FOR MORE DETAILED INFORMATION PLEASE CONTACT OUR EXPERTS David Schoch Research & Consulting [email protected]

Source: CBRE Research, 2020 Zurich Geneva Lausanne Basel Bärengasse 29 33, Rue des Bains 16-18, Avenue Louis-Ruchonnet Picassoplatz 8 CH-8001 Zürich CH-1211 Geneva CH-1003 Lausanne CH-4052 Basel www.cbre.ch

Methodology To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at www.cbre.com/researchgateway.

rd CBRE Disclaimer 2020 The cutoff date for the availability and rent data was December 3 , 2019. Only 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 rental 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.