MarketView Snapshot Office Lausanne Q4 2024

Office supply in Lausanne continued to decline in Q4 2024, as vacant space in the city centre is being absorbed by tenants' demand. The renovation of the Hôtel des Postes (CBD) and the construction of the last building in Rhodanie 40 (South) by the end of 2025 should attract demand for pre-let space. The western suburbs of Lausanne has seen increased vacancy due to the delivery of large new buildings in Bussigny/Crissier during 2024. A structural vacancy is emerging in old buildings located in areas poorly served by public transportation, such as in La Côte.

Most of projects under construction or with a building permission granted are located in the west of Lausanne: around 130,000 sqm of office should be completed by 2028, and at least as many more space are planned in the medium term (by 2030). The main fully occupied projects include owner-occupiers (RTS, Swissquote) or large tenants (Data Science Center Institute). The pipeline of short-term projects includes a significant proportion of vacant space in peripheral areas (Malley, Chavannes, Ecublens, etc.). The emergence of mixed projects (offices/industries) should continue to push vacancy rates higher in the outskirts.

The life sciences sector continues to boost rental demand in the region, as shown by the commercial success of the Biopôle's new buildings. The healthcare (clinics, doctors' surgeries), education (schools, institutes) and public (Canton/City, foundations) sectors also contribute to the bulk of office demand.

Rents remain stable in Lausanne with an upward trend in prime locations. In the peripheral areas, the rent levels of future projects are becoming more homogeneous. The strong competition to attract tenants implies greater flexibility for landlords in terms of negotiations: free rent, financial participation in tenants' fit-out, lease length etc.