Because of new work models that are being intensified in the pandemic, offices are getting a different meaning than they were two years ago. One thing is certain, and numerous studies and surveys have shown that the office will continue to be needed – this is the conclusion of the international real estate service provider CBRE in a current analysis. The development on the Linz office market, which is growing steadily, is proof of this.
CBRE’s Linz location is managed by Michael Schlager who noted “a lot of movement and growth” in Linz. “By the year 2024, both office-based work and the amount of office space in Linz should grow by around five percent. This corresponds to a space requirement of around 70,000 square meters,” says Schlager.
The Linz office market currently comprises around 660,000 square meters in the Urfahr, Donaulände, inner city and train station sub-markets. This makes Linz the second largest office market in Austria, after Vienna and ahead of Graz. There are 70,000 square meters in the pipeline, which should be completed by 2024. The largest part of the portfolio, around two thirds, is located around the Linz train station and in the city center, around 17 percent of the portfolio is on the Danube and 15 percent in Urfahr.
According to CBRE, no office space was added in Linz last year, and completions are expected in the next two years, most of it on the fringes of the sub-markets recorded so far. “The office market in Linz will grow both in terms of space and locations,” says Schlager, who cites the example of the new development of the port portal with 18,000 square meters, which is being built as part of the Neuland project at the port of Linz.
The prime rent in Linz is at the same level as at the end of 2020 at 14.50 euros / square meter / month. “With the new space, the increasing demand as well as the recently higher inflation rate and increased construction costs, rents will also rise in the next few months,” says Schlager.
Source: Nachrichten
