Lisbon's office market is at a crossroads, with only 15 to 20% of the city's office stock meeting Grade A classification criteria. This gap highlights a significant mismatch with current occupant demands and new investment strategies, according to a study by Savills.
The Demand for Modern, Sustainable Offices
The report underscores a growing demand for modern, sustainable, and tech-equipped offices in Lisbon. However, the scarcity of such spaces is paving the way for opportunities in rehabilitating and upgrading existing assets. Energy efficiency, connectivity, and user well-being are now top priorities, making Grade A buildings the new standard, not just for their construction quality but also for their energy performance and sustainability certifications like BREEAM or LEED.
Smart Buildings: The Next Frontier
Beyond sustainability, smart buildings are emerging as the next critical factor in decision-making. These buildings are equipped to integrate advanced technology and AI solutions, meeting the rising demand for intelligent workspaces.
Central vs. Peripheral Disparities
The distribution of Grade A offices reveals stark inequalities. 58% of offices built in the last two decades are located in areas like Parque das Nações or the Lisbon/Cascais business axis, while central areas like Avenida da Liberdade, Saldanha, or Amoreiras have limited supply. This imbalance has driven rents in central areas up to €35/m² for Grade A spaces.
Lisbon as a Magnet for International Firms
Lisbon continues to attract international companies, particularly in technology, finance, and life sciences. Currently, 60% of Grade A office occupancy is by foreign firms seeking buildings that align with global standards of design, sustainability, and performance.
Expert Insights
Alexandra Gomes, Head of Research at Savills Portugal, notes, "The preference for sustainable, tech-ready offices reflects a structural shift in how companies choose workspaces. This transformation is driven by regulatory requirements, ESG goals, and a focus on employee well-being and talent retention."
Luísa Noronha, Offices Associate at Savills Portugal, adds, "Lisbon's office market is undergoing a structural change. The demand for Grade A spaces is accelerating, but the supply falls short. The future lies in balancing limited new supply with repositioning and remodeling existing assets."
European Trends and the Value of Quality Spaces
Across Europe, Grade A offices are becoming the norm. Despite an expected increase in supply by 2025, a subsequent drop in 2026 underscores the urgency of rehabilitating existing assets to ensure market resilience. Sustainability and well-being are central to this value proposition, with certified buildings showing significant reductions in emissions and resource consumption.
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