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Lyons: a market affected by a lack of major transactions
Between wait-and-see and new demandAmid a difficult economic climate, the Lyons retail and office sector is suffering from a lack of movement in the large surface area segment. With just over 125,000 sq. m. taken up by 30 September, there has been a 20% fall in the market compared to the same period last year.
Only 24 sales for properties over 1,000 sq. m. have been recorded this year, accounting for 46% of the total area sold. We find that during times of crisis, it is the mid-market segment (properties between 1,000 and 3,000 sq. m.) that drives the market. Of the past 5 years, the market performed best in 2009 and whereas mid-market usually represents 20-24% of business, it rose to nearly 30% that year. The same is happening again in 2012, with 29% of volumes traded by the end of the 3rd quarter involving this size property.The market is also having to cope with a scarcity of new properties and large properties in the most sought-after areas. The absence of major transactions is however due more to a lack of suitable offers rather than a fall in demand.In fact, despite the paucity of high-quality offers in the most desirable sectors in the centre of Lyons, the major investors are still present and have not been idle. Other large transactions are expected over the coming weeks and should bolster the results by the end of the year.
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26 October 2012