Office Market Report Vienna | Spring 2023

Hybrid office buildings bring dynamism and innovation

The topics of sustainability and quality optimisation are more than ever in the focus of location requests and are becoming decisive leasing factors. The shift to hybrid forms of working continues to progress and brings clear competitive advantages for flexible office buildings. Project developers are focusing even more on the construction of high-quality, architecturally modern and, above all, sustainable properties due to the new ESG policies. This year, for example, the modern new buildings Vio Plaza (approx. 22,000 sqm) and Muthgasse 109A (approx. 3,300 sqm) as well as the striking Urban Garden refurbishment in myhive on Wienerberg (approx. 15,000 sqm) will be completed, with a special focus on sustainability and innovation. The hybrid timber construction project Muthgasse 109A has been let to the single tenant woom, and a number of well-known tenants, e.g. the aws Austrian Wirtschaftsservice, Brandl Talos Rechtsanwälte and many more, have already decided in favour of the Vio Plaza. In the next two years, further high-quality new buildings will be completed, such as FRANCIS in the Althan Quartier (approx. 40,000 sqm), Grand

Central in Floridsdorf (approx. 12,500 sqm), CARRÉ Muthgasse (approx. 5,500 sqm), ROBIN Seestadt (approx. 10,000 sqm) in the Seestadt and LeopoldQuartier (approx. 22,000 sqm) near the city centre. These aforementioned projects offer future users the opportunity to realise flexible, innovative and energy-optimised office concepts at locations with perfect infrastructure. New office concepts are more reminiscent of residential and hotel concepts than of classic offices. In times of a shortage of skilled workers, companies are responding more than ever to the wishes of their employees, paying particular attention to a pleasant working environment.

Rising rent level in the top segment

After a long period of stability, prime rents rose again last year and are now at EUR 27.00/sqm/ month for modern first-time occupancy space. A further increase in rents is to be expected, not only due to rising construction prices and persistently high inflation, but also due to the current quality offensive and the limited supply of modern first occupancy space.