Occupier demand for office premises in Geneva remained weak in 2015. Office supply continued to increase with 230,000 m² available in the Canton of Geneva, 15% of which located in the Rues Basses district in the city centre.
This tendency was already observed in 2014 and confirmed that aging vacant space in the city centre remained inadequate to meet new occupier demand. The office market has been suffering from an overhang of inefficient space since 2011, which triggered further downward pressure on rents.
This pattern was mirrored in all the Can-ton’s geographic sectors and more firmly in the city centre, where the prime rent stood at CHF 807/m²/year (-3%). As no up-turn in tenant demand is expected, the downward trend in rental value should continue in the Rues Basses district. The average rent was slightly down by -1.5% and stood at CHF 528/m²/year.
Source : BNP Paribas Real Estate