Succession of excellent quarterly results. After having posted 130,600 sq m of take-up over H1 2016, the Lyon market continued to perform well with an additional 68,300 sq m over the last three months. The overall volume therefore stands at 198,900 sq m, representing a 10% year-on-year increase. Such levels haven't been seen since 2007, a year when many of the records for the Lyon market were set.
The rising level of major transactions has led for far higher results than normal. With a cumulative figure of 118,450 sq m, the over 1,000 sq m segment accounted for 60% of overall take-up. The volume may be high, but so was the number of transactions: while there were only 23 transactions in the over 1,000 sq m segment across all submarkets by 30 September 2015, there were 37 over the first nine months of 2016. Examples of these transactions include ORANGE with 5,500 sq m in the "Anthémis" building in Part-Dieu, CARSAT's leases of 3,900 and 4,880 sq m and NOVACAP with 3,400 sq m in Ecully... [Read more]
Following a particularly active H1 with €536 million in investments, the Lyon investment market has slowed considerably. "Only" €51 million was invested in Lyon over Q3, taking the overall investment volume to €587 million.
Market activity therefore appears to have slowed somewhat over the last few months; this has mainly been due to the lack of deals for values in excess of €15 million. The lack of prime supply on the market is clearly having an impact. 11 transactions were recorded in Q3 alone (compared with 13 over the same period last year) only one of which was for more than €15 million. Although lower than in 2015, performance at the beginning of the year has allowed volumes to reach a level that is 26% higher than the average Q3 figure for the last 5 years. Concerns therefore remain relative and the first two quarters were highly active thanks to two large leases. These transactions include AEW EUROPE's acquisition of the "Le Triangle" office building in the Part-Dieu district for almost €54 million as well as PRIMONIAL's purchase of the office building "Universaône" (12,782 sq m) which was completed in 2013 in the Lyon Vaise district for around €50 million...[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)... [Read more]