Repurposing empty offices for co-warehousing, urban farming and maker spaces. Concrete strategies for profitable property transformation.
The office property sector is facing an unprecedented challenge. Millions of square metres of office space in Switzerland are standing empty, while working habits have changed fundamentally. Remote working and hybrid models have drastically reduced demand for traditional office space. What used to be considered prime office property is now often becoming a problem for owners and managers.
But crisis also means opportunity. Innovative conversion strategies are transforming hard-to-rent office space into sought-after spaces for completely new types of use. From flexible co-working concepts to urban logistics centres – the possibilities are more diverse than you might think.
This article outlines specific strategies for property owners to successfully transform their vacant office space. You will learn which conversion concepts work, which legal aspects need to be considered and how you can increase the profitability of your property again.
The coronavirus pandemic has massively accelerated an already existing trend. Companies now need up to 40% less office space than they did before 2020. At the same time, demands for flexibility and infrastructure are increasing. Open-plan offices with rigid structures no longer meet the current needs of tenants.
Office buildings from the 1980s and 1990s are particularly affected. Their floor plans, building services and energy standards often no longer meet today's requirements. Costly renovations would place an additional strain on profitability.
The result: high vacancy rates in many office property hotspots. Owners must rethink their approach or risk long-term loss of income.
One of the most innovative conversion strategies is co-warehousing. This involves converting former office space into flexible storage space for e-commerce companies, start-ups and local retailers.
Online retail continues to boom. At the same time, there is a lack of suitable storage space in urban locations. Many companies are looking for small to medium-sized storage space (100-500m²) for short rental periods. Traditional logistics properties cannot meet this demand. Former office buildings offer ideal conditions here:
Central locations with good transport links
Existing infrastructure (electricity, internet, heating)
Flexible floor plans for different sizes of space
Existing lifts and loading ramps (often retrofittable)
Successful co-warehousing projects combine different types of use on one floor. Smaller areas serve as storage, while larger areas become packaging and shipping centres. Common areas with break rooms and meeting rooms round off the concept.
Vacant office space is ideal for indoor farming projects. Controlled lighting conditions, existing air conditioning systems and stable ceiling loads enable the cultivation of vegetables, herbs and microgreens. The demand for locally produced vegetables is growing, especially in large cities.
The events industry is constantly on the lookout for unusual locations. Former office space can be converted into versatile event venues at low cost. From corporate events and workshops to private parties – the possibilities are endless.
The advantage: minimal investment with maximum flexibility. Existing meeting rooms, kitchen areas and sanitary facilities significantly reduce conversion costs.
Craftsmen, artists and entrepreneurs are looking for affordable workshop space in central locations. Former offices can be converted into communal workshops for various trades.
3D printers, wood workshops, textile studios and electronics labs find ideal conditions in open-plan office landscapes. Communal areas promote exchange and create synergies between users.
Conversions usually require a change in the use class under building law. While the conversion of office space to other commercial uses is often straightforward, additional requirements may arise for warehousing or production.
Fire protection: Storage use often requires different fire protection concepts
Noise protection: Neighbourhood compatibility with intensive commercial use
Parking spaces: Logistics use usually requires more parking spaces and loading ramps
Load capacity: Heavy storage racks require structural analysis
An experienced architect or project manager can identify critical issues and develop solutions as early as the planning phase.
Not every conversion goes smoothly. Typical stumbling blocks include inadequate market analyses, underestimated conversion costs or regulatory hurdles.
A thorough feasibility study that takes both technical and economic aspects into account is crucial for success. Working with specialist consultants and experienced project developers minimises risks and optimises results.
Vacant office properties are not an inevitable fate. Creative conversion strategies such as co-warehousing, urban farming or maker spaces transform problem properties into profitable assets.
The key lies in early strategic realignment. Those who develop innovative utilisation concepts today are positioning themselves for the post-pandemic world of work and tapping into new sources of income.
Start with an honest analysis of your property: What are the structural conditions? What target groups are there in the surrounding area? What conversion suits the local market? The next few years will be decisive. Use the transformation as an opportunity to position your property for the future.
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