The Greater Paris Region office market posted a further increase this summer. With figures for Q1 already over the 500,000 sq m level, Q2 fared even better and exceeded 600,000 sq m. Q3 also saw a good level of performance with 592,000 sq m of take-up. By the end of September, transactions stood at over 1.7 million sq m (+14% year on year) which is in line with the ten-year average normally seen for this period.
Activity in the over 5,000 sq m segment has been consistently good since the beginning of the year with no fewer than 17 transactions completed by major corporates this summer while there were 16 and 15 over Q1 and Q2 respectively. These transactions also demonstrate major corporate appetite for new space...[Read more]
Following a timid start to the year, investments in the Greater Paris Region market have increased quarter on quarter. €5.5 billion was therefore invested over Q3 2016, taking the overall performance since the beginning of the year to €12.4 billion; this equates to a 6% year-on-year increase and is 36% higher than the long-term average.
Following the sale of "Tour First" in Q2 for an estimated €800 million, a further 2 transactions for values over €500 million boosted the market over the summer. AMUNDI acquired three assets in the Greater Paris Region from KANAM as part of a European portfolio for an estimated €700 million and GIC sold two iconic buildings in Paris to a French institutional investor for approximately €500 million. This activity managed to offset a slight downturn in transactions in the €100 to €300 million segment. There have been 28 transactions for values over €100 million since the beginning of the year, amounting to a total of €7.3 billion...[Read more]
While INSEE had initially forecast growth of 0.3% in Q2 2016, GDP fell (-0.1%) for the first time since 2014, surprising most economic observers. Some claim that the French economy is drawing to a halt, while others see this decline as a simple bad patch following a particularly active start to the year (+0.7% of growth over Q1).
The main driver of growth, household consumption, remained stable over the last three months...[Read more]