Property Times

Zurich : CBD continues to suffer - Q3 2014

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Despite an ever more obvious lack in sufficient demand for large-scale vacancy in the CBD, landlords are failing to further correct asking rents and the tenant’s strong position in negotiations is shown more strongly in lengthening rent-free periods and other initial incentives. Given traditional CBD occupiers’ continuing trend for cost-cutting and decentralisation, demand is not expected to improve so dramatically as to avoid a further reduction in prime rents and essentially a closing of the gap between prime location rents and prime property rents in secondary locations which have traditionally stood at least CHF 200-300 / sq m lower.

Switzerland remains in a stronger economic position than other parts of Europe but signs of stagnation have unexpectedly returned in the second and third quarters of 2014.

Source : DTZ

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Mots-clés : DTZ