Shortage of office space in Paris
Since the beginning of the year, immediate office supply in Paris has fallen by 100,000 sq m leaving the average vacancy rate in the capital at 3.6% by the end of September. With 592,000 sq m of availability, supply in Paris has not been this low for 8 years!
After a long period of balanced supply (2009-2015) with a vacancy rate of around 5%, levels started to fall in Paris a year ago and immediate supply now stands at only 6 to 7 months of consumption in most submarkets.
Paris accounted for over half of all transactions carried out in the Greater Paris Region since the beginning of the year and there was a particularly high level of activity in the major transactions segment which posted 19 transactions for spaces over 5,000 sq m in 2016, compared with 14 last year over the same period. As well as being more numerous, these transactions were also larger as there have been 13 deals for spaces over 10,000 sq m since the beginning of the year whereas, over the last five years the average for spaces over 10,000 sq m in Paris was 7 transactions per year.
The highest number of major moves since the beginning of the year was seen in peripheral submarkets, with the 15th and 13th districts leading the way (5 and 4 transactions for spaces over 10,000 sq m respectively).
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