Office Market Report Vienna | Spring 2025

Market Report Spring 2025

We stand for real estate.

Office Market Report

Preface

Due to the significant increase in the production of new space, we are looking ahead to this year’s real estate market with confidence and optimism, despite the challenging economic environment. The projects planned for this year and 2026 will give fresh momentum to the Vienna office market and revitalise the demand situation in the long term.

momentum on the office market. It will be crucial to precisely master the balancing act between companies‘ cost awareness and their high quality standards. Our EHL office specialists are on hand to advise you with in-depth expertise, many years of experience and a strong sense of responsibility – because for us, long-term client relationships are the clearest proof of the highest level of integrity.

Under the credo “supply creates demand”, we expect a continuous increase in

Michael Ehlmaier FRICS

Franz Pöltl FRICS

Managing Partner EHL Immobilien GmbH

Managing Partner EHL Investment Consulting GmbH

Stefan Wernhart MRICS

Alexandra Bauer MRICS

Managing Director EHL Gewerbeimmobilien GmbH

Head of Office Agency EHL Gewerbeimmobilien GmbH

Vienna | Spring 2025

Overview of the office market in Vienna

Executive Summary

The upturn in production of new space is giving the market a new boost. Over the course of the year, we will see whether the increased construction activity is reflected in an improved letting performance.

In 2024, the volume of completions has already doubled com- pared to the previous year. This positive trend will continue in 2025 with 111,000 sqm of newly created office space. This will increase the supply of high-quality first-time occupancy space, which will lead to a moderate increase in the currently very low vacancy rate of 3.3 per cent in the short term. Production of new space & vacancy rate

Letting performance The low supply of first-time occupancy space and the subdued economic outlook led to a comparatively low total letting performance of just 165,000 sqm in the previous year. We are forecasting a moderate increase for the current year, which is attributable to the up- coming completions.

Stable rent prices The rent increases recorded in the recent past have now stabilised. The prime rent currently amounts to EUR 28.50/sqm. The still limited supply of modern office space in prime locations continues to exert significant pressure on rent levels.

The current turbulent economic policy situation in Europe and the subdued GDP development compared to the USA and China are affecting the European real estate markets on many levels and are currently often leading to a delay in investment deci- sions by investors. This naturally also affects the Austrian investment market. Howev- er, following a significant decline in transaction volumes in 2023 and 2024, there has been a slight trend reversal since the beginning of the year. Investor interest and ap- praisal activity are slowly returning, meaning that a significant increase in transaction activity is expected for 2025, even if this is not yet reflected in the volume figures. Investment

Office Market Report

Office Market Vienna 2021 - 2025

300,000 sqm

7 %

225,000 sqm

6 %

150,000 sqm

5 %

180,000

170,000*

170,000

165,000

126,000

111,000*

75,000 sqm

4 %

90,700

66,700

45,800

3.3 %

3 %

2021

2022

2023

2024

2025

*Forecast, Source: EHL Market Research | Q1 2025

Production of new space in sqm

Take-up in sqm

Vacancy rate

Market overview

Production of new space

111,000 sqm



Office supply

Total market**

VRF***

Take-up*

170,000 sqm



Office space

11,753,300 sqm 5,812,939 sqm

Vacancy rate

3.3 %



Vacancy rate

3.3 %

3.77 %

Prime yields

5.0 %



Forecast

** All indicators are based on the total market (old and new buildings), unless indicated otherwise *** Acc. to Vienna Research Forum, www.viennaresearchforum

Prime rets EUR/sqm/month

28.50 €













Increasing

Slightly increasing

Stable

Slightly decreasing

Decreasing

Source: EHL Market Research | Q1 2025

Vienna | Spring 2025

Impulses for the office market

New projects boost momentum on the Vienna office market

Last year, the limited new construction activity of recent years was clearly noticeable on the Vienna office market. The long-standing restraint in completions led to a very limited supply of first-time occupancy space in top locations and a historically low vacancy rate of just 3.3 per cent. A comparable figure is currently only known from Paris. In prime locations, such as Vienna‘s city centre and around the main railway station, the low availability of office space has led to significant excess demand, resulting in rising rents and declining incentives. However, the prospects for 2025 are promising: In 2024, the completion volume has already doubled compared to the previous year to around 90,700 sqm and a volume of 111,000 sqm of new office space is expected for this year. This increased production of new space should stimulate the market in the long term and contribute to a new dynamic. The projects due for completion this year set a high standard in terms of fit-out quality and sustainability. Examples include the timber-hybrid LeopoldQuartier OFFICE near the city centre (approx. 24,000 sqm), the efficient new CENTRAL HUB building in

TwentyOne (approx. 21,000 sqm) and the landmark VIENNA TWENTYTWO building near the Donau Zentrum (approx. 24,000 sqm). This portfolio is complement- ed by the high-quality refurbishment enna, the-work-life-building (approx. 22,500 sqm) and the striking CARRÉ Muthgasse (approx. 13,000 sqm). The projects due for com- pletion this year set a high standard in terms of fit-out quality and sustainability.

A special milestone is expected in 2026, when DC2 – 2 work 2 live 2 be (approx. 37,000 sqm), the first office tower with an integrated photovoltaic facade, will be completed. The aforementioned projects will enable future users to realise flexible, innovative and energy-optimised office concepts in excellently developed locations. The new office space concepts are increasingly orientated towards residential and hotel requirements rather than traditional office formats.

Prime locations 18.0 - 28.5

Standard locations 13.0 - 16.0

Quality locations 14.0 - 19.0

In €/sqm/month | EHL Rent Index of 100 existing and/or refurbished office buildings at various locations First-time occupancy rents

Office Market Report

Completions 2025

Property

Address

Size

LeopoldQuartier OFFICE

1020; Obere Donaustrasse 25

24,000 sqm

VIENNA TWENTYTWO, Component 1+3

1220; Dr.-Adolf-Schärf-Platz 10

24,000 sqm

enna, the work-life-building

1030; Erdberger Lände 40-48

22,500 sqm

CENTRAL HUB, TwentyOne

1210; Siemensstrasse 87-89

21,000 sqm

CARRÉ Muthgasse

1190; Muthgasse 105

13,000 sqm

MC15

1030; Modecenterstrasse 15

7,300 sqm

Source: EHL Market Research | Q1 2025

Vacancy rates in European comparison (in %)

Prime rents in European comparison (in EUR/sqm/month)

Budapest

14.1

London (Central + West End)

172.0

Bucharest

13.5

100.0

Paris (Central + CBD)

12.4

60.0

Paris (Central)

Milan

Frankfurt

10.9

53.5

Munich

Frankfurt

49.0

Warsaw

10.6

London (Central)

10.1

Amsterdam

47.5

Madrid

9.8

Berlin

45.0

Milan

9.8

Madrid

42.5

London (West End)

8.7

Warsaw

30.0

Munich

7.4

Prague

29.0

Prague

7.3

Vienna

28.5

Berlin

6.9

Budapest

22.5

Amsterdam

6.4

Bucharest

20.5

Paris (CBD)

3.5

Vienna

3.3

Source: EHL Market Research | BNP Paribas Real Estate | Q1 2025

Vienna | Spring 2025

Office regions in Vienna

Inner City | Surroundings

Selected properties 1010, Goldenes Quartier Office 1010, Haus am Schottentor 1010, Renngasse 13 1010, Salzgries 12 1010, Strauchgasse 3 1020, LeopoldQuartier OFFICE 1040, Ensemble Schwarzenbergplatz 1090, FRANCIS

Vienna Office Regions

Rents

€ 16.0-28.5

Rents tendency

  

Supply

Demand

Main Railway Station | Quartier Belvedere 4 Selected properties 1030, DOCKS

Southern Region | Wienerberg

Selected properties 1100, myhive am Wienerberg 1100, The Brick

1030, LOOP Offices* 1030, Village Works 1100, LAX 2B 1100, QBC 1100, The Icon Vienna 1100, Tower Canettistrasse 1110, LMNT Offices*

1120, EURO PLAZA 1120, INNO CENTER 1230, Silo Next 1230, Silo Plus 2345, Campus 21

Rents

€ 16.0-26.0

Rents

€ 12.0-18.0

Rents tendency

  

  

Supply

Demand

Northern Region

Vienna Donau City | Surroundings

Selected properties 1190, CARRÉ Muthgasse* 1190, Square 1 1200, Millennium Tower 1200, Rivergate 1210, GRAND CENTRAL

Selected properties 1220, Andromeda Tower 1220, Ares Tower 1220, DC Tower 1 1220, DC2 – The place

2 work 2 live 2 be*

1210, Peak Vienna 1210, TwentyOne

1220, IZD Tower 1220, Saturn Tower 1220, VIENNA TWENTYTWO

Rents

€ 12.0-25.0

Rents

€ 13.0-28.0

Rents tendency

  

Supply

Demand

Seestadt Aspern

Airport City Vienna | Surroundings

Selected properties 1220, Campus West 1220, HOHO Wien 1220, PIEROS* 1220, ROBIN Seestadt 1220, SeeHub 1220, Seeparq 1220, Sirius 1220, Technologiezentrum Seestadt

Selected properties 1300, Office Park 1300, Office Park 1 1300, Office Park 2 1300, Office Park 3 1300, Office Park 4 2320, Concorde Business Park

Rents

€ 12.5-18.0

Rents

€ 10.0-22.0

Rents tendency

  

Supply

Demand

Office Market Report

Lassallestrasse | Messe | Prater

Eastern Region | Erdberg

Selected properties 1020, 2nd Central 1020, Austria Campus 1020, E-Zone

Selected properties 1030, enna 1030, Landmarx 1030, MQM

1020, Lassallestrasse 3 1020, Quartier Lassalle 1020, Vienna Works 1020, Weitblick, Viertel Zwei*

1030, Solaris 1030, Tricore 1030, ViE 1110, Office Campus Gasometer

Rents

€ 14.0-27.0

Rents

€ 12.5-19.5

Rents tendency



  

Supply



Demand



* Project

Western Region

Selected properties 1120, Forum Schönbrunn 1120, O.A.X* 1120, VIO PLAZA 1140, Workstation Wien West 1150, Storchengasse 1

Rents

€ 11.0-20.0

Rents tendency

  

Supply

Demand

A22

U2 U5

A23

A21 A2 S1

Vienna | Spring 2025

Rentals

The increasing establishment of hybrid working models is having a noticeable impact on the demand for office space. Companies are increasingly looking for flexible space concepts that enable both collaborative working and retreats for concentrated work. In many cases, this development is leading to a reassessment of space requirements and space design and, in consequence, sometimes to a change of location. Adaptation to focus remains on hybrid working models

Rentals 2025 (selected examples)

Tenant

Address

Size

Medical Institute

1140; Hütteldorfer Strasse 130

3,200 sqm

ABZ*AUSTRIA

1020; Lassallestrasse 3

1,800 sqm

Österr. Apotheker-Verlagsgesellschaft m.b.H

1090; FRANCIS

1,200 sqm

Software company

1030; enna

1,200 sqm

Accenture GmbH

1010; Haus am Schottentor

1,200 sqm

Public tenant

1040; OC4

1,200 sqm

FCC Austria Abfall Service AG

1100; URBAN GARDEN

1,000 sqm

ÖBB

1100; Hebbelplatz 5

1,000 sqm

EHL provided consulting services to tenants and/or lessors.

Source: EHL Market Research | Q1 2025

Office Market Report

Take-up by regions

7 %

9 %

30 %

13 %

Other

Inner City | Surroundings

15 %

Northern Region Lassallestrasse | Messe | Prater

26 %

Eastern Region | Erdberg

Southern Region | Wienerberg

Take-up by sectors

7 %

13 %

32 %

17 %

Pharma and health Public sector IT | high-tech Educational and trainings institutions Trade and services

31 %

Take-up > 1,000 sqm included Source: EHL Market Research | Q1 2025

Vienna | Spring 2025

References

Our office- reference projects

See our expertise in action with a small selection of our lettings. From ultra- modern office concepts to sustainable office solutions – discover which projects are part of our portfolio.

FRANCIS

VIO PLAZA

A medical institute (approx. 3,500 sqm), the Österr. Apothek- er-Verlagsgesellschaft m.b.H and Valmedica Althan GmbH (approx. 1,200 sqm) have decided to rent space in the FRANCIS. EHL acted in an advisory capacity on the tenant and/or landlord side.

Brandl Talos (approx. 2,400 sqm), ECOVIS Austria (approx. 2,800 sqm) and aws Austria Wirtschaftsservice (approx. 5,500 sqm), among others, have decided to rent space in the spectacular VIO PLAZA. EHL acted in an advisory capacity on the tenant or landlord side.

GLA

47,700 sqm 1090 Vienna

GLA

22,000 sqm 1120 Vienna

District

myhive am Wienerberg | URBAN GARDEN URBAN GARDEN brings a sus- tainable balance to work and life on approx. 18,000 sqm. EHL is mandated on a co-exclusive basis for the URBAN GARDEN and the striking Twin Tower. Myhive am Wie- nerberg has enjoyed high tenant demand for years. GLA 18,000 sqm District 1100 Vienna

EURO PLAZA

HFO Health Facility Operations Services (1,800 sqm), Amadys Tel- ecom Austria GmbH (1,000 sqm), HPC IBK GmbH (400 sqm) and MTEL Austria (1,200 sqm) have opt- ed for the EURO PLAZA location. EHL acted in an advisory capacity on the tenant and/or landlord side.

GLA

26,500 sqm 1120 Vienna

District

Office Market Report

LOOP Offices

DC2 – The place 2 work 2 live 2 be The 175 metre high DC2 will complement the Vienna skyline and offer high-quality offices

The visionary office building (approx. 14,200 sqm) impresses with its striking appearance and ecological design. EHL is man- dated on a co-exclusive basis and is in the middle of the marketing process.

with all-round loggias. As the first high-rise building in Austria with a photovoltaic facade, it will be a showcase project for sustainabili- ty and a feel-good atmosphere.

GLA

37,000 sqm 1220 Vienna

GLA

14,200 sqm 1030 Vienna

District

INNO CENTER

CARRÉ Muthgasse, Building 2

The modern office building im- presses with its optimal price/per- formance ratio and diverse infra- structure. The approx. 7,000 sqm of vacant space will be refurbished using state-of-the-art technology in consultation with the tenant. EHL is mandated on a co-exclusive basis.

The prominent office building is characterised by its prestigious lobby and spacious roof terrace. EHL has been exclusively man- dated to market one of the two components (approx. 5,700 sqm) and is in talks with several pro- spective tenants.

GLA

5,700 sqm 1190 Vienna

GLA

18,600 sqm 1120 Vienna

District

Vienna | Spring 2025

Investment

Investment market

Investments in property, which fell sharply in 2023 and 2024, are slowly beginning to recover, but investors are only returning gradually and with a very safety-oriented approach.

Investors are currently still struggling with the difficult financing conditions in particular. The cuts in key interest rates have not yet been reflected in the terms of mortgage financing and have instead been reflected in increased risk margins. At the same time, the industry expects the wave of developer insolvencies to continue into the autumn. Construction starts are

still rare and the pipeline of new properties coming onto the market is poorly filled, meaning that slight price increases can be expected again in the medium term due to the future low supply. Properties that generate a sustainable, secure cash flow are currently in demand, although at lower prices. Vacancies or short lease terms, on the other hand, result in a

disproportionately high price discount and significantly lower buyer interest.

The sustainability of property continues to be an omnipresent topic. ESG-compliant new builds are less affected by the distortions. They are experiencing lower price adjustments as they fulfil the current sustainability requirements of the European union. Older existing properties, on the

Prime yields on office properties in European comparison (in %)

8 %

8.0

7.0

6 %

6.25

5.75

5.5

5.0

4 %

4.5

4.4

4.25

4.2

4.0

2 %

0 %

Source: EHL Market Research | BNP Paribas Real Estate | Q1 2025

Office Market Report

other hand, are sometimes struggling with significant price markdowns as they often no longer meet the rising expectations of investors. However, the situation has eased slightly since the Trump administration took office and the EU Commission postponed the achievement of the taxonomy targets.

The very low level of new construction activity in the office segment will further exacerbate this trend over the next few months at least, meaning that price increases and yield declines are to be expected here.

participants with sufficient equity are able to take advantage of the current market situation to acquire strategically interesting properties. Further developments in 2025 will depend heavily on the future development of macroeconomic conditions. If the expected further interest rate cuts also occur at the long end and the overall economic situation improves, this could lead to a significant revitalisation of the investment market.

Liquidity among investors is still available and market partici- pants with sufficient equity are taking advantage of the market situation to acquire strategically interesting properties.

Investors from family offices, foundations and special funds are currently by far the strong- est buyer groups. The market is also very active in the office segment in particular, with a clear excess demand for top

products in the volume range between EUR 30 and 60 million, which cannot be met by the short supply of such properties.

A good sign for the investment market is that liquidity remains fundamentally available among investors and that market

Reference projects Investment

City Tower Vienna

ViE

EHL Investment Consulting brokered the prominent City Tower Vienna office tower in Marxergasse in Vienna’s 3 rd dis- trict, which is fully leased to the Republic of Austria and houses the Justice Centre Wien Mitte.

EHL Investment Consulting brokered the DGNB Platinum certified office property with 14,100 sqm rental space and a multi-tenant structure with a strong credit rating in a top location and accessibility at the Erdberger Lände.

GLA

14,100 sqm

GLA

26,600 sqm Immofinanz

Client

CA Immo

Client

Mariahilfer Strasse 121b

Franz-Jonas-Platz 2-3

EHL Investment Consulting brokered the fully let office and commercial building on Franz- Jonas-Platz in Vienna‘s Floridsdorf district. The property, which was renovated in 2009, comprises a total area of 11,035 sqm and 149 underground parking spaces.

EHL Investment Consulting brokered the office building with around 4,300 sqm of usable space, including around three quarters of the office and a quarter of the retail space, which is almost completely leased to a number of renowned companies.

GLA

11,035 sqm S IMMO AG

GLA

4,300 sqm S IMMO AG

Client

Vienna | Spring 2025

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Cover: DC2 | © S+B Gruppe The information and forecasts in this report are provided without guarantee, warranty or liability. The digital version of the report can be downloaded under www.ehl.at/research.

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