Large office deal in Vienna-Floridsdorf: price explosion on the market!

Large office deal in Vienna-Floridsdorf: price explosion on the market!

In the last few days, a huge real estate deal in Vienna-Floridsdorf has caused a stir. The office building at Franz-Jonas-Platz 2-3 has changed hands, making this sale the largest real estate deal of 2025. The seller is the company CPI Europe, which was previously known as Immofinanz. The transaction was brokered as part of a co-exclusive mandate by the real estate service providers CBRE and EHL. What is explosive is the fact that the property, which was renovated in 2009 and is fully rented, offers over 11,000 square meters of office and commercial space as well as 149 underground parking spaces. The buyer, a private investor, paid a purchase price for this property that was associated with a return of well under five percent. The trend is also evident here: After the crisis years of 2023 and 2024, we are again seeing signs of rising prices on the Vienna office market.

The latest development is all the more remarkable as the market is celebrating a noticeable comeback after the challenges of recent years. The office market in Vienna currently has a historically low vacancy rate of just 3.56 percent, which impressively underlines the high demand for office space. According to otto.at, the volume of new construction in Vienna is growing steadily and will rise from 98,900 m² in 2024 to 107,400 m² in 2025. The forecasts even call for the completion of almost 125,700 m² of office space in 2026.

Market dynamics and investment returns

Speaking of demand: The office asset class captured a market share of 32 percent last year, with investments totaling a whopping 850 million euros. But while private investors generally prefer smaller properties, institutional investors have the upper hand, investing more than 1.2 billion euros in property sales - almost 50 percent of the market. The buyers, on the other hand, often private individuals and real estate companies, bought together for 1.8 billion euros, which accounts for a market share of over 70 percent. This dynamic suggests that high-quality properties in top locations will continue to be very popular.

However, the current market condition is not for everyone! While the top quality segment remains stable, older existing properties without sustainable renovation and ESG certification are on the defensive. The quality of office space is becoming a crucial factor as companies are currently pushing for ESG-compliant space and are willing to pay higher rents for it.Innovative refurbishment projects are increasing and are seen as an economically viable alternative to new buildings.

Outlook and trends

Developments on the Vienna office market are promising and market participants are optimistic. “The rental performance increased by a remarkable 82 percent in the last quarter compared to the previous quarter,” says a report from otto.at. Companies are increasingly looking for locations with good connections to public transport, which is also reflected in the average walking time of 7.5 minutes to the next station. These trends could shape the “mixed nature” of the real estate market in the coming years.

In summary, the Vienna office market is recovering from the difficult years. According to wirtschafts-nachrichten.at, there is a moderate market recovery for 2025, led by stabilized interest rates and an upturn in the investment markets. The demand for modern, well-located and sustainable office space remains unbroken - and it seems that this will continue to be a fixture in Vienna's real estate sky in the coming years.