Shake It Off: How Sweden’s Office Market Outpaces America’s

When you think of a typical office, what do you imagine? A skyscraper in New York with busy businesspeople rushing to their meetings, or perhaps a charming office building in Stockholm with convenient commutes and cosy coffee breaks? The Swedish office market has several fundamental advantages that make it superior to its American counterpart. According to insights from Newsec, these factors shape a dynamic and attractive work environment in Sweden.

First and foremost, Sweden has experienced a strong return to the office after the pandemic. In cities like Stockholm and Gothenburg, office attendance is back to about 70-80% of pre-pandemic levels, depending on submarket. In smaller cities with short commutes, the numbers are even higher. The short commuting time plays a crucial role—less time on the bus or in the car means more time at the office and for social activities, making office work more appealing for employees. The US return to the office is substantially weaker than the Swedish return.

Another fundamental advantage of the Swedish office market is its attractive office areas, often located in vibrant and mixed-use neighbourhoods. Unlike the US, where office areas are often concentrated in sterile downtown zones, Swedish cities feature office spaces in neighbourhoods bustling with life around the clock. Restaurants, housing, nightlife, and other activities coexist in the same area, creating a dynamic environment that is equally attractive for work and leisure. This diversity makes working from the office more inviting.

Sweden also had a well-established culture of remote work even before the pandemic, which facilitated a smoother transition between remote work and office work. Unlike the US, which underwent extensive lockdowns, Swedish businesses and employees could quickly adapt to new work formats, which were less stringent than elsewhere in the world. This flexibility has strengthened the Swedish office market and made both employers and employees appreciate the value of a hybrid work environment, where the office remains central.

An aspect that also cannot be overlooked is the absence of widespread homelessness in Swedish cities, a stark contrast to many American metropolises. This contributes to a safer and more attractive urban environment for businesses and their employees.

Furthermore, Sweden has a strong focus on sustainability and infrastructure. Swedish cities continuously invest in modern, eco-friendly buildings and efficient public transportation systems that make commuting smoother and reduce environmental impact. This commitment to sustainability and innovation attracts companies and employees who value these aspects, further strengthening the market.

Another key factor is the better work-life balance in Sweden. The Swedish work culture values a healthy work-life balance, and the stressful and demanding work environment often associated with American offices is less common here. This allows employees to avoid the harsh work culture and enjoy a more balanced life, even when working from home.

In conclusion, comparing the Swedish and American office markets is almost like comparing apples and oranges. They operate in fundamentally different ways and have different underlying drivers. After the pandemic, the differences between the Swedish and American office markets have become even greater. The Swedish office market stands out with its strong recovery, vibrant neighbourhoods, and safer urban environment. These unique characteristics, along with a focus on sustainability and infrastructure, make it clear that Sweden offers a superior environment for the future of office work. Foreign investors risk missing significant opportunities if they do not understand these fundamental differences.