Moving to new premises is often a source of stress for decision makers. Finding offices that meet the current and future needs of the organisation, efficient preparation of the move, supporting the teams, predicting and optimising financial costs… There is so much to think about, in order to survive the change with as little disruption as possible.
In this article, we decided to address the issue of cost estimate and optimisation. We wanted to look behind the costs generated by the move and explore three topics to measure their short- and medium-term impact on office moves:
- the availability of office space (and its impact on rents)
- changes in rents (past and future)
- the economic stability of the Geneva region
These three topics are essential for understanding market trends and obtaining a clear vision of the financial repercussions of relocating.
Availability of office space
This is the first criterion to consider when starting to study the real estate market with a view to moving your organisation. It takes time to learn what is available in the market (research), i.e. finding the right sources of information, and it takes time (analysis) to consider the facts. But is it enough in itself to assess availability based on that first level of data?
Not quite, to be honest. A thorough analysis must also consider historical changes in the supply of office space – so you can draw up credible scenarios of market trends – as well as the different building projects in each region (new building permit applications, permits granted, projects under consideration, pre-leased space, etc.).
Information about all these factors is essential if you are to have a clear view of the office property market. But also – and above all – if you want to study the situation in depth, you must obtain information directly from companies responsible for marketing the properties.
Rental benchmark and possible future movements
An objective knowledge of rental trends in individual districts is essential for identifying movements and forecasting fixed costs. But of course, no one can say what the future will be. A glance at recent history puts this into perspective: a real estate crisis in 1990, a financial crisis in 2008 and today’s COVID-19 crisis.
The impact of these crises is very real. Today, company behaviour is changing: the democratisation of the “home office”; physical distancing within offices; flexibility and modularity of office space… All these have to be taken into account when choosing offices. Also, they all have to be considered together with graphs showing rental price movements and the actual amount of those rents.
Because in Geneva, office space rentals can double from district to district! In the uncertain context that we have been experiencing for several months, and which is likely to continue, it is wise to base your choices on objective data and the advice of experts in the field of office real estate… in order to avoid unpleasant surprises if at all possible.
Economic stability and fiscal attractiveness
Switzerland has 26 cantons, so 26 different corporate tax rates… with disparities that can be considerable and significantly impact the finances of companies and organisations. Corporate taxation has been a national and cantonal issue for many years.
The beginning of 2020 saw an adjustment of corporate taxation at the national level. But the cantons have a free hand to adjust this tax rate and offer tax deductions. Geneva has skilfully positioned itself by establishing a stable and competitive tax rate. The canton has become more attractive to companies from a tax viewpoint and is now one of the leaders in terms of fiscal attractiveness.
Discover the answers
Do you have any questions about the availability of office space in Geneva? Do you want information about current and future construction projects? How are rents likely to move? And is Geneva really a good choice for you to locate your business?
Discover the answers to these questions in our targeted analysis of the Geneva office property market.