Colliers: Higher vacancies no problem for the office market

12/06/2019

2020 because of the slowing economy. However, there aren’t too many offices being built, says Head of Office Leasing Wolfgang Speer. According to calculations by Colliers, the ratio of new office space to take-up will increase to 50 % in 2020/21, which is still not much in light of the backlog plus additional demand due to the continued growth of the office labor market. During the boom of past years that figure was still at 24 %. However, prior to the bursting of the dotcom bubble early in the millennium, new spaces amounting to 87 % of the take-up had come onto the market. When looking at take-up and vacancy in relation to one another, the present vacancy level is the lowest since the downswing in the 90s. There was a similar situation prior to the New Economy bubble – but at the time the increase in office jobs was exceptionally high and the subsequent drop more severe than in other cycles, Speer argues.


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