Hard-Facts

Vienna is recording a vacancy rate of around 3.6% and rising peak rents. What does this mean for companies looking for office space in good locations today and for people working in this market?

When we started YOUR OFFICE in 1997, a "real" office was anything but flexible and service-oriented: lots of space, long contracts, private kitchen, private assistance. Flexible models were seen more as a transitional solution. Not as a long-term business case. Today, the picture has changed massively. Worldwide, the market for flexible and serviced offices is expected to roughly triple by 2032, with forecasts pointing to clearly double-digit growth rates.

In most European markets, the share of flexible office space is not yet in this range – but it is growing steadily. In London, flex space already accounts for a double-digit share of the office space market; further significant growth is expected by 2030.

At the same time, space availability in good locations is tight: in a city like Vienna, a low vacancy rate for office space means that high-quality and sustainably built buildings in central locations are scarce – and are becoming more expensive.

Many companies therefore want to reduce their office space without losing their good address or external impact. They need to get employees back into the office and realize that old floor plans and "mandatory attendance" are not enough for this. They are under pressure to comply with ESG regulations, but no longer want to sign traditional long-term contracts. And they want to relieve their teams of everyday facility management. No more discussions about who cleans the kitchen or who takes care of technology, reception, and maintenance.

Just recently, a Vienna real estate expert summed it up with the following statement: "I've always enjoyed being in this industry, but the old model no longer feels right." For him, our niche is becoming increasingly interesting: serviced and flex offices in premium locations that are growing, responding to new work and ESG concepts, and making it possible to actively help shape the workplace of the future instead of just watching the dismantling of traditional spaces.

Almost half of all headquarters of international companies in Austria are located in Vienna. At the same time, fewer and fewer corporations want to commit to rigid office models.

What really matters to global corporates today when they choose Vienna, and why are they increasingly choosing serviced offices instead of the traditional model?

We are often asked this question. Especially by people who still have the traditional image in mind: A corporation rents several floors in an office building, a ten-year term, everything organized independently.

However, the reality of recent years looks different. International companies come to us with very clear questions:

They want a premium location, often in a specific cluster – such as where their partners, customers, or the IT industry are located –, but due to new working models and usage concepts, their space requirements no longer fit the traditional scheme. Or they simply no longer want to commit "long term" because they want to test a market first or set up a spin-off for a limited time.

Others are dealing with downsizing or rightsizing strategies: the CEE hub becomes a smaller sales office, teams are reduced, the old location no longer fits. The demand for address, quality, and public image remains – but the space is to be leaner, more flexible, and more modern. At the same time, companies are frequently switching to desk sharing and hybrid working models. Employees should also feel more comfortable in the new space and return to the office more frequently – out of conviction and thanks to tangible added value.

Almost everyone is struggling with similar issues:
– Getting employees back to the office without rigid mandatory attendance.
– Taking hybrid work seriously while still offering a professional framework with good conference rooms and reliable media technology.
– Meeting ESG guidelines and moving into sustainable buildings without committing to decades-long contracts.
– Relieving teams of everyday facility management – no more discussions about kitchen, technology, cleaning, or maintenance.

Corporations rarely make gut decisions here. They calculate total costs: rent, fit-out, cleaning, reception, IT infrastructure, statutory maintenance, internal headcounts – and in some cases also balance sheet effects if contracts remain under 12 months. In many cases, a high-quality serviced office works out better in this calculation than the in-house solution – with the same or better address quality.
We therefore see our role less as a traditional landlord and more as a partner that offers global companies in Vienna a professional, scalable, and agile framework – right where the traditional long-term model reaches its limits.