The Viennese market for office space currently shows a lack of supply. While demand remains high, there is not enough new office space being built. The majority of office buildings developed in 2015 was built for the use of the owner, and only one newly finished project was made available for rent to third parties. The situation will not improve before 2017, which means negotiating power remains with the landlords for the time being. Office space rents are approximately € 13/m² on average, but in top locations in down town Vienna rents can go up to € 25/m². Especially for companies requiring large office space rental in advance is often the only option, even if the actual relocation of the offices happens considerable time later.
The prospect of high rental income has generated strong interest for office buildings by domestic and international investors. Price fluctuation for office rent is below 5% which makes Vienna exceptionally safe and attractive for investments when compared to other international cities. Despite an increase in prices of roughly 20% in the past 5 years for commercial property, which includes offices, hotels and retail space, prices have not peaked yet. Top yields of around 4.5% are still achievable.
Please ask for our large portfolio of commercial property in Vienna´s central districts and peripheral locations as well as in Salzburg. The commercial properties on offer comprise office buildings and commercial property with mixed use, i.e. retail space on the ground floor (and first floor where available) and offices or apartments on the upper floors.
Vienna | Rents - Yields - Vacancy Level
Rents
Top level rents in Vienna have only increased slowly over the past years. While they were at €23/m² in 2010, rents for prime office space have now reached € 25,75 in central locations.
Yields
Due to the market situation and substantially higher prices than in 2010, yields in Vienna are under pressure. Top yields have fallen from 9% to 4.5% currently, which is still a very attractive return when compared to markets in other European cities.
Vacancy Level
High demand for office space results in very low vacancy levels across the market which is currently at 6.5%. In 2010 vacancy levels were even lower at 6%. Vienna has one of the lowest vacancy levels across Europe. Empty office space can be found mainly in older buildings with lower standards but it can also be found in high rise office towers.
Top level rents in Vienna have only increased slowly over the past years. While they were at €23/m² in 2010, rents for prime office space have now reached € 25,75 in central locations.
Yields
Due to the market situation and substantially higher prices than in 2010, yields in Vienna are under pressure. Top yields have fallen from 9% to 4.5% currently, which is still a very attractive return when compared to markets in other European cities.
Vacancy Level
High demand for office space results in very low vacancy levels across the market which is currently at 6.5%. In 2010 vacancy levels were even lower at 6%. Vienna has one of the lowest vacancy levels across Europe. Empty office space can be found mainly in older buildings with lower standards but it can also be found in high rise office towers.