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Vienna Officemarket 1Qu 2020

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Vienna office market: Vienna Research Forum publishes its figures for the 1st quarter of  2020

  • Take-up in the first quarter at approx. 13,000 m²
  • Largest rental accounts for about 14% of the total take-up
  • Vacancy rate amounts to 4.0%

In the first quarter of 2020 take-up on the Vienna office market totaled 12,977 m² – around 65% less than in the first quarter of 2019 and also 65% less than in the fourth quarter of 2019.

This is what the results of the Vienna Research Forum (VRF) show after evaluating the current key data of the Vienna office market. The VRF only takes into account modern office space built since 1990   or completely renovated and office space which meets certain quality criteria such as indoor climate, elevators or IT  standards.  According  to  the Vienna Research Forum, the largest take-up was the new lease of around 1,800 m² in the Prater/ Lassallestraße submarket. This corresponds to approx. 14% of the total take-up on the Vienna office market in the first quarter. Other large-scale lettings were registered in the Wienerberg (South) submarket with about 1,150 m² and in the Inner Districts - CBD submarket with around 1,000 m². A total of 39 lettings were recorded in the first quarter – 8 less than in the previous quarter and 9 less than in the first quarter of 2019.

A closer look at take-up based on type of rental shows that 100% account for new leases and 0%  for pre-lets*.

Vacancy rate decreased to 4.0% in 1st quarter

In the first quarter of  2020,  the  vacancy  rate  in  the VRF portfolio of modern office buildings in Vienna amounted to 4.0%, which is a decrease of 0.6 percentage points compared to the  previous  quarter and a decrease of 1.2% percentage points  to the same period of the previous year (Q1 2019). The submarket with the lowest vacancy rate was Airportcity Vienna with 1.65% and the submarket with the highest rate was North with 6.24 %.

For the first time in September 2016, the VRF collected the total stock of modern office space for Vienna which it updated at the end of the first quarter of 2020: it amounts to 5,902,945 m²**, of which 60% belong to class A and 40% to class B real estate according to VRF standard. In the first quarter, the property The Brick in the Wienerberg (South) submarket was included in the stock. For  the Wienerberg (South) submarket a letting  of  1.800 m² was also subsequently filed for the fourth quarter of 2019, which raised the total take-up in 2019 to 191,153 m². Furthermore, the vacany rates of all projects were reviewed and updated.

 

* The take-up registered by VRF only refers to new leases and pre- lets, renewals of rental agreements are not included.

** The stock of office space can change from quarter to quarter due to regular adaptations of unclassified objects, conversions and completions.

VRF is a merger of the leading Vienna commercial real estate companies (CBRE, Colliers, EHL, ÖRAG, OTTO, Spiegelfeld)

 


Vienna Officemarket 1Qu 2020

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