Office indicators – Geneva August 2004

	The Office Letting Market in Geneva • Supply and demand are now in balance • There has been a slow down in activity for lettings of new developments in the 1st half of 2004 • 2nd half is expected to be more buoyant for new space • Vacancy at 2.0% * (KREC estimate for end June 2004) • Lettings have concentrated on the smaller end of the market over the last 12 months • Banks remain active in reorganising and consolidating their accommodation • Development activity low as most developers await pre-lettings before commencing construction
source: OCSTAT & KREC 2004

source: OCSTAT & KREC 2004
	Rental values • Rents continue their gentle fall in city centre • Airport District prime rents remain stable at CHF725/m2 • Prime rents are now at CHF 900/m2 • Average office rents are now approaching CHF 350 /m2 • Geneva market continues to be more resilient than that of Zürich
source: OCSTAT & KREC 2004

Important transactions

• Winterthur Life buy Pictet’s Bld Georges-Favon site for CHF130 million

• UBS sells their co-ownership interests at Confédération Centre to an owner occupier for CHF 14.15 million, and at 16 rue de la Corraterie to Lombard Odier Darier Hensch for CHF 15 million

• JPMorgan Chase sell 63 rue du Rhône to owner occupier for top price

• Safra Bank and two private investors swap their respective buildings at Bld Georges-Favon 26 and quai de l’Ile 3

• Union Banque Privée lease the former Safra Bank building at 92 rue du Rhône

• JPMorgan Chase take a further 1 600 m2 in the Confédération Centre

• Nestlé expand in ave Louis-Casaï

Key drivers in the markets are:

• Private banks and financial services companies

• Technology companies

• UN related organisations

• Multi-national’s seeking European headquarters in Geneva

It should be noted that the KEY INDICATORS SERIES of briefing notes have been prepared to give clients an indication of market values and activities. They are based on a variety of sources of information, which are believed to be correct and reliable. However, no liability will be accepted by KREC for errors or inaccuracies.