MarketView Snapshot Office Basel Q3 2024

Over the last few years, the office availability rate in the city of Basel steadily increased from very low
2.7% in Q1 2019 to 5.7% as of Q3 2024, which corresponds to 147,000 sq m. Basel holds the highest
availability rate of the five largest Swiss cities. After a decrease in availability in Q1 2024, the amount of
available space has now again seen a slight increase due to new properties being marketed (e.g.
Grosspeter TEC). The supply of large and modern office units in good locations (Grade A) has slightly
strengthened but remains limited overall.
In the suburbs, after a temporary sideways trend, availability has strongly increased since early 2023
and currently stands at 94,000 sq m or 7.4% in Q3 2024, the highest rate ever measured.
The Basel commercial real estate market continues to be in a transitional phase, which is characterized
by two factors. First, several formerly owner-occupied industrial sites (e.g. Rosental Mitte or Klybeck)
are being made available to new users, thereby expanding the rental market.
Secondly, the consolidation wave is gradually reaching its peak. Various life sciences and financial
companies are releasing rental space in favor of their new owner-occupied buildings (e.g. Roche or
Helvetia) or are striving to use their buildings more efficiently and are releasing their own space to
third-party tenants (e.g. Novartis). Accordingly, a further expansion of supply is likely to take place in
the mid term.
Following the completion of many owner-occupied buildings in recent years, the pipeline of new builds
for the years 2024 to 2026 and especially for the years after 2026 shows a significantly lower
construction activity. In the city of Basel, cumulated new office construction is expected to reach
72,000 sq m by 2026 and 84,000 sq m by 2028, if all projects will be realized as planned.