Flex Offices in Switzerland – Here to Stay?

The market for flex office space in Switzerland has experienced a real boom in the past five years. In 2019, there were 19 locations and around 28,000 m² of usable space with flex office space in Zurich. By the end of 2024, the number of locations had increased to 50 and the usable space to around 75,000 m². The Zurich North region is particularly noteworthy. In this area, the number of locations has increased more than tenfold over the same period. One reason for this massive growth in Zurich North may be the continuing high volume of available office space and the associated search for solutions to reduce vacancies.

In addition to Zurich, Basel, Geneva and Zug are among the most important markets in Switzerland for flex office operators. Flexible space in all four regions tripled between 2019 and 2024. It is interesting to note that only Zurich has seen a constant increase. In Geneva and Zug, the increase has been moderate, particularly in the last three years, while in Basel there has been virtually no increase at all.

The spread of flex offices in Switzerland is based on several factors. According to our survey of operators, the main demand comes from companies with 2 to 15 workplaces, with classic, lockable office spaces being the most popular.

A major advantage for companies with space requirements of this magnitude is access to state-of-the-art, fully furnished office space that meets all the standards of a large corporate headquarters. These often include collaborative lounge areas, kitchen areas with coffee and drinks, meeting rooms of all sizes, IT infrastructure and additional amenities such as office management, community events or a comprehensive range of sports facilities. This gives smaller companies access to first-class working environments. The flexibility of these offers, in terms of the size of the space used, the general term and the geographical location, is another advantage. Companies can quickly rent additional workstations or reduce their space as needed, which is reflected in the average rental period of about 18 months.

Users often come from an international environment. The most frequently mentioned sector is IT. However, there are also location-dependent differences: offices near Zurich's Paradeplatz, for example, are more often used by financial companies. The presence of a particular industry attracts other companies in the same industry. This clustering further increases the attractiveness of flex offices and creates dynamic business communities.

The presence of flex offices has several implications for real estate ownership, which can be categorized into three main areas:

Risk assessment: Virtually all operators of flex spaces want full pre-funding of the fit-out, which represents an increased risk for the ownership. Some operators are even seeking revenue or management models that would shift even more risk onto the owners. These models are rejected by most owners, especially in attractive locations.

Influence on your own property: The presence of a flex office operator brings both advantages and disadvantages. The advantages include the possibility of using the operator's services, such as a reception or conference rooms, as well as a livelier building and a more versatile range of space. The disadvantages are the increased flow of people due to the large number of tenants and the resulting “anonymization”, which can be undesirable depending on the positioning of the property.

Impact on the market: The trend towards more flexibility has also reached conventional occupiers. Smaller tenants tend to want to avoid investing large sums in fit-out. In response, owners are increasingly willing to provide almost a full fit-out or at least to (co-)finance such projects. At the same time, they are more open to shorter terms or granting early break options.

The outlook of the flex office market in Switzerland is promising. Most operators are signaling expansion plans for the coming years. While the current market share is around 1%, providers are forecasting potential growth to 6-10% of the total office market in the next few years. However, many operators assume that the current share is already higher.

For new locations, operators are looking for spaces of 1,500 m² or more. A prime location is at the top of the list of requirements, ideally with a ground-floor connection and high visibility. The properties should have ventilation, cooling and generous window fronts. It is particularly important that the floor plan can be efficiently divided into small office units, allowing for optimal furnishing with a high number of workstations.

The focus of growth is particularly on cities where the operators are already present. This enables operational synergies and reduces business risk.

These expansion plans underscore the growing interest in flexible office solutions and indicate the increasing importance of this segment in the Swiss real estate market. The challenge for operators will be to find suitable locations that meet their specific requirements while also offering the potential for profitable expansion.

Trends and developments in the flex office market show interesting dynamics both in international comparison and within Switzerland:

Abroad, a higher share of flex offices can be observed in the overall market. Revenue-based models between operators and owners are more established there. In addition, real estate owners are increasingly developing their own flexible office solutions in order to benefit directly from this growing market segment.

In Switzerland, the flex office concept is expanding into other real estate segments. In addition to traditional office space, there is an increase in flexible offers in areas such as serviced apartments, laboratory space and practice rooms. These can also be rented flexibly as all-in-one packages, which reflects the increasing demand for flexible usage concepts across different types of space.

These developments underscore the growing trend towards flexibility in the real estate market and beyond. The boundaries between traditional rental models and flexible usage concepts are becoming increasingly blurred, opening up new opportunities for investors, owners and users. At the same time, this dynamic presents the industry with the challenge of developing innovative solutions that meet changing needs.

The expansion of the flex-space concept to various real estate segments in Switzerland shows that the market is responding to the increasing demand for flexibility in all areas of work and living space. This development could lead to an even more diverse and adaptable real estate landscape in the future.

If the growth estimated by the Flex Offices operators actually occurs, this would have a major impact on the office market in the larger office market regions. Taking Zurich as an example, this would mean that the number of locations would (again) triple in the next few years and the rented space would increase to around half a million square meters.