Contact details

You can contact us by calling 020 4525 7383 or Send us an enquiry.

Our opening times are
Monday - Friday

9.00am - 6.00pm.

Swiss commercial property finance

Swiss Commercial Property Investment Guide (2025)

Table of Contents

1. Office Investment Guide

Section Table of Contents

Market Overview and Trends (2025)

Stable Demand, Modest Vacancy: Major cities (Zurich, Geneva, Basel) show office vacancy around 5%, with prime CBD areas tighter (~2–3%).

Some oversupply in secondary zones, but high-quality central space remains scarce.

Flight to Quality: Tenants favor modern, energy-efficient offices; older or less central buildings face downward rent pressure. Net effective rents are flat to slightly rising in prime locations.

Post-Pandemic Adjustments: Hybrid work is present but less pronounced than in some countries.

Firms keep offices, often downsizing modestly or adopting flexible layouts.

Financing and Capital Structures

Conservative LTV (60–70%): Banks typically lend 50–65% for offices.

Long-term fixed-rate mortgages or SARON-based floating rates are common.

Swiss Banks / Cantonal Banks: Relationship-driven lending; interest margins vary ~1.0–2.0% over SARON.

Share Deals vs. Asset Deals: Some cantons have no transfer tax for share deals; this can optimize costs but requires thorough due diligence on the target SPV.

Lex Koller Exemption: Pure commercial (office) property is exempt from foreign ownership restrictions.

Transparent Title Transfer: Done via Swiss notary and land registry.

Share deals skip direct property transfer tax in certain cantons.

Lease Continuity: Tenants remain under existing leases when ownership changes.

Tax Implications

Corporate Tax: Net rental income taxed at ~12–22% depending on canton; depreciation is deductible.

Transfer Taxes: Canton-specific, typically 1–3% on asset deals; possible savings in share deals.

No Withholding on Rent: But dividend or interest to foreign owners can trigger 35% withholding, often reduced by treaties.

Transaction Structuring

Asset vs. Share Deal: Asset deals are straightforward; share deals can save transfer tax but require deeper corporate liability checks.

Joint Ventures: Common for large assets (~CHF 50M+). Local partner involvement can assist with financing or zoning knowledge.

Sale-Leaseback: Some corporates unload office real estate to raise capital, signing back a long lease.

Post-Acquisition Strategies

Lease Optimization: Re-gear below-market leases, index rent to inflation, or buy out tenants with suboptimal terms.

Value-Add Refurbishments: Modernize older buildings for ESG compliance (Minergie, LEED) and higher rents.

Cost Management: Swiss labor and utilities are costly; investing in energy efficiencies can improve NOI.

Regional/Local Overview

Zurich: Financial/tech hub, 5% vacancy, prime CBD yields ~2.5–3%. Highest rent: ~CHF 900–1,000/m²/yr.

Geneva: Intl. organizations, luxury services, prime rents up to CHF 950–1,000/m²/yr in CBD. Vacancy ~5%, but near 0% in top spots.

Basel: Life sciences driver. Some new supply for pharma HQs. Rents ~CHF 400–500/m²/yr prime, yields 3.5–5%.

Conclusion and Outlook

Swiss offices remain a core investment: stable, low vacancy in prime, and moderate rental growth.

With supply discipline and strong tenant demand from finance/pharma, the sector offers low volatility and steady returns in a globally uncertain environment.

Back to top of section | Back to top of page



2. Retail Investment Guide

Section Table of Contents

Market Overview and Trends (2025)

Bifurcated Market: Prime high-street (Zurich’s Bahnhofstrasse, Geneva’s Rue du Rhône) sees strong demand, minimal vacancy, and ultra-high rents.

Secondary malls and peripheral shops face e-commerce and cross-border shopping pressures.

Luxury & Experience: Luxury watch, jewelry, and fashion remain robust in major Swiss cities.

Malls pivot to F&B and leisure.

Tourism Recovery: Record tourist arrivals in 2024–25 support downtown retail.

Cross-border shopping still impacts border regions.

Financing and Capital Structures

60% LTV for Prime: Banks more cautious on retail, especially if secondary or high vacancy.

Margin Premium: Slightly higher spreads vs. office. Lenders scrutinize tenant mix and anchor covenants.

Equity-Heavy: Many high-street deals financed by private wealth or family offices with lower leverage.

No Lex Koller Limits: Foreigners can buy Swiss retail freely (purely commercial).

Tenant Lease Continuity: Retail leases carry over on property sale.

Eviction can be restricted if tenants have strong goodwill claims.

Zoning & Licensing: Malls require designated commercial zoning; anchor exclusivity clauses can limit future tenant choices.

Tax Implications

VAT Option: Retail leases often opted into VAT (7.7%) so landlords can reclaim input VAT on upgrades.

Transfer Tax: 1–3% typically, or circumvented in share deals.

Corporate Income Tax: Retail rent is taxed similarly to office. Turnover rent components are normal business income.

Transaction Structuring

Anchor Tenant Negotiations: Vital for shopping centers. Often anchor renewal or rent terms are key deal points.

Sale-Leaseback: Retail chains monetize real estate, signing long leases. Risk depends on tenant credit.

Joint Ventures for Malls: Co-owners can share redevelopment costs, especially if repositioning is required.

Post-Acquisition Strategies

Tenant Mix Curation: Replace underperforming shops, add F&B/entertainment for footfall.

Façade & Signage Enhancements: Critical on high streets to attract prestige brands.

Marketing & Events: In malls, robust center management boosts tenant sales and potentially turnover rent.

Regional/Local Overview

Zurich (Bahnhofstrasse): Prime rents exceed CHF 10,000/m²/yr, near 0% vacancy, intense luxury brand demand.

Geneva (Rue du Rhône): Luxury watch and jewelry hub, strong tourist spend, prime rents ~CHF 4,500–6,500/m²/yr.

Basel (Freie Strasse): More local/regional retail, yields ~4%. Cross-border shopping from Germany/France influences mid-tier segments.

Conclusion and Outlook

High-street Swiss retail is resilient; prime streets see stable or rising rents.

Secondary malls face e-commerce pressure, often requiring renovation or repurposing.

The market’s dual nature (prime vs. secondary) offers both stable core investments and value-add plays for agile investors.

Back to top of section | Back to top of page



3. Logistics Investment Guide

Section Table of Contents

Market Overview and Trends (2025)

Supply-Constrained: Modern warehouse space is scarce, vacancy ~5% and falling.

E-commerce and 3PL expansions drive robust demand.

Rents Rising: Prime logistics ~CHF 120–150/m²/year in Zurich/Geneva; older secondary stock sees moderate rents.

Owner-Occupied Tradition: Many facilities are corporate-owned. Sale-leasebacks increasingly create investable assets.

Financing and Capital Structures

60–65% LTV Typical: Strong covenants (e.g. Swiss Post, big retailers) can push LTV slightly higher.

Competitive Interest Margins: Lenders now view core logistics as almost “bond-like,” especially with stable, long-term tenants.

Mezz & Forward Funding: Used for new developments or value-add conversions (older warehouses to modern standards).

Lex Koller Exemption: Industrial/logistics is commercial, no foreign restriction.

Zoning Constraints: Industrial zoning is limited; expansions require municipal approvals.

Environmental Checks: Past industrial uses may require verifying no soil contamination.

Tax Implications

Canton-Specific Transfer Tax: ~1–3% on asset deals. Share deals can reduce or avoid it in some cantons.

Corporate Tax on Rental Income: Effective ~12–18%. Depreciation of warehouses lowers taxable profits.

No Regular Withholding on Rents: But foreign-lender interest or dividend distributions might face 35% withholding unless treaty exempts.

Transaction Structuring

Sale-Leaseback: Common for industrial firms freeing capital.

SPVs & Share Deals: Often used to sidestep direct transfer taxes.

Thorough due diligence on SPV vital.

JVs for Development: Local developer + foreign capital to build new distribution centers near Zurich/Basel.

Post-Acquisition Strategies

Upgrade & Reconfigure: Modernize older facilities to handle higher clear heights, docking, or cold storage.

Multi-Tenanting: Splitting large old warehouses into smaller units for e-commerce/city distribution.

Lease Management: Retain strong tenants with extension deals or re-lease quickly in a low-vacancy market.

Regional/Local Overview

Zurich Corridor (A1): Biggest consumer base, prime rents ~CHF 150/m². Minimal land supply.

Geneva Area: ZIMEYSA industrial zone, airport logistics. Canton foundation (FTI) organizes industrial land.

Basel Region: Major life sciences & tri-national hub. Rhine port, strong pharma distribution. Yields ~4–5% prime.

Conclusion and Outlook

Swiss logistics is a rising star: persistent undersupply, surging e-commerce, and expansions by 3PL firms.

Investors find secure income with stable covenants. Expect further rent growth where new supply is blocked by zoning, reinforcing the sector’s long-term attractiveness.

Back to top of section | Back to top of page



4. Hotels & Hospitality Investment Guide

Section Table of Contents

Market Overview and Trends (2025)

Strong Post-Pandemic Rebound: RevPAR meets or exceeds 2019 levels.

Leisure demand soared; business/MICE recovering steadily.

High ADRs: Geneva and Zurich rank among Europe’s top for average rates (CHF 300–400+ in upscale).

Resorts enjoy premium winter/summer peaks.

Limited New Supply: Swiss land constraints keep hotel pipeline small, helping existing assets maintain pricing power.

Financing and Capital Structures

Careful Underwriting: LTV ~50–60% for hotels. Lenders analyze operator strength, location.

Owner-Operate vs. Lease vs. Management Contract: Varied models. Institutional investors often prefer lease or well-known brand manager.

Sale-Leaseback: Rare but growing. Operators free capital, sign long lease. Investors gain stable income.

Commercial Exemption from Lex Koller: Hotels are commercial, so foreign buyers can invest.

OpCo / PropCo Splits: Common to separate real estate from operations.

Local Tourism Protections: Some alpine cantons restrict converting hotels to apartments.

Tax Implications

Profit from Operations: If an investor also runs the hotel, operational income is taxed as business income.

VAT on Rooms (10% Rate): Some F&B/spa items at 7.7% or 2.5%. Summarily, Swiss hospitality VAT can vary.

Capital Gains & Transfer Taxes: Similar structure to other commercial assets, ~1–3% transfer tax in many cantons.

Transaction Structuring

Asset vs. Share Deals: Possibly big tax savings in share deals for large trophy hotels.

Management Contract: Investor retains property profits, hires brand to run day-to-day.

Lease Model: Safer, stable rent.

More common in city business hotels than in seasonal resorts.

Post-Acquisition Strategies

Renovation & Rebranding: Upgrading older properties yields significant ADR lift; consider bringing global brand to a top location.

Revenue Management: Swiss hotels use dynamic pricing. Good revenue management can raise occupancy and RevPAR.

Operational Efficiency: Staffing is a challenge (high labor costs, staff housing shortage).

Tech solutions (e.g. self check-in) can cut costs.

Key Markets: Urban vs. Resort

Urban (Zurich, Geneva, Basel): Year-round business travel, MICE.

Occupancies ~70–75% in prime, strong ADR.

Resort (St. Moritz, Zermatt, Gstaad): Highly seasonal, premium winter/summer rates, shoulder-season dips.

Potential for big profits in peak months.

Outlook and Strategic Considerations

Swiss hospitality offers high room rates, global traveler demand, and supply constraints.

Investors weigh the stable city business segment vs. the seasonal but often more profitable resorts.

With tourism still expanding and limited new builds, hotels can deliver strong returns, provided capex and operator choice are carefully managed.

Back to top of section | Back to top of page



5. Alternative Sectors (Student Housing, Data Centers, Healthcare, Life Sciences)

Section Table of Contents

Student Housing

Limited Dedicated Stock: Swiss students often rent private apartments, so purpose-built student accommodation (PBSA) is small but growing.

Cities with Demand: Zurich, Geneva, Lausanne, Basel, Bern – each has major universities.

Opportunity: Investors can develop or convert older buildings to PBSA near campuses. Yields can be higher than mainstream residential.

Data Centers

High-Tech Growth: Demand from cloud providers, banks, and biotech for secure Swiss data hosting.

Constraints: Land cost and power supply are biggest barriers. Highly specialized build-outs.

Locations: Zurich area (strong connectivity), Geneva “International Cloud,” plus new smaller hubs in Basel. Potential for stable, long-term leases.

Healthcare Real Estate

Clinics and Senior Living: Aging population drives demand for assisted living, medical centers.

Regulatory Complexity: Often need local health authority approvals; staff shortage can hamper operator performance.

Stable Income: Many healthcare facilities run on multi-year leases backed by operators with state support.

Life Sciences Real Estate

Pharma & Biotech Hub: Especially Basel, also Zurich-Schlieren. Labs, R&D offices.

Higher Rents for Labs: Specialized fit-out; limited supply.

Institutional Demand: Big Swiss and foreign funds actively seeking lab assets for premium returns.

HNWI Considerations

Niche Expertise: Operating partners or specialized managers often required.

Potentially Higher Yields: Offsetting the complexity and smaller deal pipeline.

Strategic Diversification: Non-cyclical (healthcare) or growth-oriented (data centers) can complement core real estate holdings.

Back to top of section | Back to top of page



6. Development Projects & Value-Add Strategies

Section Table of Contents

Major Projects & Land Constraints

Switzerland’s strict zoning leads to minimal new construction.

Urban expansions (e.g., Zurich West, Geneva’s Praille Acacias Vernets) are mostly mixed-use. Limited greenfield sites exist for large-scale commercial.

Redevelopment is a key route to create new prime assets.

Value-Add Renovations

Refurbishing outdated office, retail, or logistics properties can significantly boost rents and occupant appeal.

Upgrading to modern design and tech features (HVAC, sprinklers, open plan layouts) typically commands rent premiums, especially in supply-constrained Swiss cities.

Permit & Government Coordination

Local municipalities have strong influence. Large projects require environmental and traffic impact assessments.

Public consultation is common. Engaging city planning early can ease approvals, especially if including community benefits (public squares, cultural spaces).

Sustainability Upgrades

Switzerland targets net-zero by 2050. Retrofitting for energy efficiency (better insulation, solar panels, Minergie/LEED certification) is increasingly a must.

Tenants value green buildings, and cantonal rules encourage building efficiency for new or renovated projects.

Back to top of section | Back to top of page



7. Primer on Commercial Property Investment & Finance (Swiss-Specific)

Section Table of Contents

Relationship-Driven Lending

Swiss banks (Cantonal, national, or private) prefer to work with known borrowers.

Maintaining assets under management or demonstrating robust finances can yield better loan terms.

Conservative Underwriting Norms

LTV rarely exceeds 70% for commercial. Debt service coverage must be comfortable.

Many deals see partial amortization yearly.

No Public REITs / SPVs

Switzerland lacks a REIT regime for direct property.

Investors typically set up Swiss AG or GmbH SPVs.

Some real estate funds exist, but they are specialized and not identical to REITs.

Equity-Dominant Structures

Large family offices or local pension funds often buy with minimal leverage.

Leverage-savvy foreign players weigh interest cost vs. stable returns.

Tax-Neutral Environment? Not Exactly

Unlike Monaco, Switzerland imposes corporate tax, plus canton-level transfer or property taxes.

Skilled structuring (share deals, debt allocation, depreciation) can reduce the burden.

Back to top of section | Back to top of page



8. Glossary of Commercial Real Estate Terms (Switzerland Context)

Section Table of Contents

SARON (Swiss Average Rate Overnight)
Key Swiss reference rate replacing LIBOR.
Commercial mortgages often priced at SARON + margin.
Lex Koller
Swiss law restricting foreign ownership of residential property.
Does not apply to purely commercial assets (offices, shops, logistics, hotels).
Minergie Certification
Swiss label for energy-efficient buildings. Widely recognized, can enhance asset value and tenant interest.
Referenzzinssatz (Reference Interest Rate)
Swiss reference mortgage rate used to index residential rents. Occasionally relevant for certain commercial lease indexation clauses.
Grundstückgewinnsteuer (Real Estate Gains Tax)
Canton-level property gains tax, typically on sale profits. Rate varies, often lower with longer hold periods.
FTI (Fondation pour les Terrains Industriels)
Public foundation in Geneva controlling industrial land supply, enabling logistics and industrial developments with regulated land leases.
Back to top of section | Back to top of page



Final Notes for HNWI & Family Offices

Switzerland’s commercial real estate offers reliability, modest yields, and strong demand across core sectors (office, retail, logistics, hotels).

Investors enjoy long-term wealth preservation in a stable economy.

While Swiss taxes and cantonal rules can be intricate, careful structuring and engagement with local advisors unlock prime opportunities, from trophy city-center offices to resort hotels and specialized logistics.

For HNW and family offices, the Swiss market remains a prestigious, resilient cornerstone in a global real estate portfolio.

Back to top of page