Stockholm, 7 April 2022 – Cushman & Wakefield launches the report Office Snapshot Sweden with the theme of relocation patterns and strategies.
In Cushman & Wakefield's mapping of tenants' moving patterns in Stockholm, it is clear that the inner city continues to be strong. In 2021, 95 percent of tenants chose to remain within the inner city limits and the majority of tenants previously located in the suburbs chose to move closer to the city center. From the companies that have relocated within the inner city, it can be deduced that the micro-location has lost somewhat in importance, in favor of a high-quality office with a better floor plan. As an effect of the pandemic's impact on our way of working, it is clear that a reallocation of spaces is taking place, where the number of office spaces decreases while the number of smaller meeting rooms increases. The large conference rooms are on the way out and coworking is increasingly part of the future local strategy.
Gustaf Benndorf, Head of Tenant Representation at Cushman & Wakefield says; "Currently, we see that more and more people who choose to move for strategic reasons have had the discussion for a long time and are now ready to make the decision. Many who move to another submarket move towards the city and usually to a better office product that offers more flexibility, either in the individual office or in the building as such. Another trend that is growing is the offer of service services in the building, such as coworking and conference rooms, shared reception, shared dining rooms, restaurant and gym. Anything that makes things easier for the tenant is considered attractive.”
The questions surrounding local strategy and workplace strategy have ended up increasingly high on the company management's agenda. The reasons are several. In order to protect the company's culture and innovative ability, the employees need to meet. At the same time, there is a challenge for companies to attract their employees back to the office when much of the work can demonstrably be done from home. A new, modern office of high quality is now seen as the main tool and the new office is also used for brand strengthening purposes.
Annie Lilja, Senior Advisor, Strategic Advisory at Cushman & Wakefield says; "The majority of respondents in our survey state that environmental certification of the office building was an important parameter in their decision regarding new premises and more than the majority have signed green leases with their landlords. It is clear that the sustainability aspect now permeates more and more of the companies' decisions."
During the first quarter, Cushman & Wakefield sees that prime yields have fallen somewhat in Stockholm's inner city, while the levels in Gothenburg and Malmö have remained unchanged. Prime rents are noted to remain stable in Stockholm and Malmö, while Gothenburg CBD has increased. The share of available office space on the market is unchanged during the quarter. Vacancy rates have remained stable during the quarter at levels of 5% for Stockholm CBD and Gothenburg CBD, while Malmö New CBD has a vacancy rate of 6.5%.
Anders Elvinsson, Head of Valuation & Strategic Advisory Cushman & Wakefield says; "The comprehensive survey we have now carried out clearly shows that the companies have relocated to premises in green buildings with good public transport and a good range of services in the immediate area. During the past year, business has taken place with office properties in peripheral locations that far from meet the shell requirements of a modern company and where the initial vacancy was significant. I think that some of these property owners have gotten in over their heads and the entry values in these deals are too high to be able to justify conversion to another use in the near future, assuming it is even possible."
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate advisory firm that delivers significant value to property owners, investors and tenants. Cushman & Wakefield is among the largest real estate advisors with approximately 50,000 employees in over 400 offices in 60 countries. In 2021, the company had revenue of $9.4 billion and a range of services including capital markets, tenant representation, valuation, leasing and other services. For more information, visit www.cushmanwakefield.com or follow Cushman & Wakefield Sweden on LinkedIn.
