The property professionals’ solution

The combination of in-office work and remote work, known as hybrid work, has become a lasting feature of the professional world. Contrary to certain predictions announcing a generalized return to the office, companies today seem to have found a new balance between physical presence and flexibility.

In Switzerland, nearly 77% of companies have adopted some form of hybrid organization. The proportion of employees working partially remotely has remained stable since 2022, a sign that remote work is no longer a temporary measure but rather a structural component of the labour market.

The office is changing its function

This evolution is profoundly transforming the role of the office. It is no longer solely a place dedicated to individual work, but is increasingly becoming a space for meetings, coordination and collaboration.

Employees now tend to prioritize their presence on-site for meetings, informal exchanges, creative interactions or the development of professional relationships. According to several studies, the office continues to be perceived as the preferred place for social interactions, networking and strengthening corporate culture.

In this context, companies are focusing less on multiplying fixed workstations and more on offering attractive and flexible spaces: modular open spaces, conference rooms, collaborative areas or relaxation spaces.

Growing pressure on the office real estate market

The development of hybrid work is mechanically reducing the need for office space. The “space sharing” model is becoming increasingly widespread, and many companies are optimizing their square footage in order to reduce operating costs.

This evolution particularly weakens older buildings, often constructed before the 2000s, whose infrastructures no longer meet current expectations in terms of flexibility, energy performance or the quality of workspaces.

In Geneva, more than 300,000 m² of office space and nearly 24,000 m² of commercial space are currently seeking tenants. This increase in vacant surfaces illustrates the transition currently affecting the commercial real estate market.

The consequences could extend beyond the real estate sector alone. A significant proportion of commercial buildings is financed through bank loans. When spaces remain vacant for a prolonged period, declining rental income can weaken certain property owners and increase financial risks for lending institutions.

The decline in the daily attendance of office districts may also affect local businesses, particularly restaurants, which could reduce demand for commercial properties.

Increasing demand for higher-quality and better-located offices

Hybrid work does not, however, mean the disappearance of the office. Rather, it encourages a polarization of the market.

Companies continue to seek modern, easily accessible spaces capable of offering real added value to employees. The quality of facilities, energy performance and user experience are becoming central criteria.

Well-located and renovated buildings therefore retain their attractiveness, while obsolete spaces are experiencing increasing difficulty in finding tenants.

New expectations in the residential market

Hybrid work is also influencing the housing market. As the home has become a partial workplace, many households are now looking for properties offering an additional room that can serve as an office.

This evolution is increasing demand for :

• larger apartments ;
• homes with an additional bedroom ;
• outdoor spaces ;
• properties located in residential areas well connected to urban centres.

In a context of sustained demographic growth, this demand contributes to maintaining strong pressure on the Swiss residential market, both for rentals and purchases.

The conversion of offices into housing

Faced with rising vacancy rates and housing shortages, conversion projects are multiplying. Several office-to-apartment transformation projects are currently underway in French-speaking Switzerland, particularly in Geneva.

This transformation opens up new perspectives for investors and construction stakeholders. Not all buildings can easily be converted, but a large part of the existing stock will need to be renovated and adapted to current standards.

Energy requirements, public subsidies and the search for profitability are already encouraging owners to undertake major transformation works. The strong presence of institutional investors in the Swiss real estate market facilitates this evolution thanks to their long-term financing capacity.

Conclusion : what challenges for the real estate sector ?

Quality now prevails over quantity : companies are seeking less surface area, but better-located, more flexible offices offering a genuine user experience.

Older buildings will need to be repositioned : energy renovation, modular spaces and infrastructure modernization are becoming essential elements for maintaining the attractiveness of real estate assets.

The conversion of commercial surfaces represents significant potential : transforming offices into housing could become a strategic lever in regions facing residential shortages.

The market is moving towards increasing polarization : premium assets retain their value, while obsolete spaces risk long-term vacancy.

Residential expectations are also evolving : demand for larger homes adapted to remote work could continue to influence the design of future real estate projects.

Source

immobilier.ch - Article
Chantiersmagazine.ch - Article
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