Vienna office market: Vienna Research Forum publishes its figures for the 2nd quarter of 2020
- Take-up in the second quarter at approx. 30,600 m²
- Largest rental accounts for about 16% of the total take-up
- Vacancy rate amounts to 3.9%
In the second quarter of 2020 take-up on the Vienna office market totaled 30,596 m² – around 49% less than in the second quarter of 2019 and 136% more than in the first quarter of 2020.
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 4,880 m² in the West submarket. This corresponds to approx. 16% of the total take-up on the Vienna office market in the second quarter. Another large-scale letting was registered in the Erdberg - St. Marx (East) submarket with 2.015 m². A total of 36 lettings were recorded in the second quarter – 3 less than in the previous quarter and 13 less than in the second quarter of 2019.
A closer look at take-up based on type of rental shows that 94% account for new leases and 6% for pre-lets*.
Vacancy rate decreased to 3.9% in 2nd quarter
In the second quarter of 2020, the vacancy rate in the VRF portfolio of modern office buildings in Vienna amounted to 3.9%, which is a decrease of 0.1 percentage points compared to the previous quarter and a decrease of 0.4 percentage points compared to the same period of the previous year (Q2 2019). The submarket with the lowest vacancy rate was Airportcity Vienna with 1.6% and the submarket with the highest rate was West with 8.2%.
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 second quarter of 2020: it amounts to 5,924,530 m²**, of which 61% belong to class A and 39% to class B real estate according to VRF standard. In the second quarter, the property Rathausstraße 1 in the Inner Districts - CBD submarket was included in the stock.
* 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)