New office production
in the Greater Paris Region
Key new office production figures and insights for the Greater Paris Region
2018, another good year for forward-funded sales
New production and marketing lead time
Over 695,000 sq m of new or refurbished office space was delivered in the Greater Paris Region over 2018, this is lower than the average volume recorded over the last 10 years. The rate of completions through to 2021 should remain strong with over 1.9 million sq m under construction and due for delivery over the next 3 years, over half of which is still available on the rental market.
This year, construction starts for 39 buildings began on a speculative basis for a total of 842,000 sq m of pipeline space.
The marketing lead time for buildings in the Greater Paris Region fell once again year on year, as almost two thirds of the space delivered in 2018 was leased during construction (compared with 64 % and 46 % in 2017 and 2016).
The forward funding market
Forward-funded sales (VEFA) remained strong in 2018 with almost €3 billion in investments. With a total of 23 in 2018, there were more VEFA transactions than in 2017 (17) but these were for smaller, or less central developments.
There were 14 speculative VEFA, representing almost €1.1 billion in investments. Their market share has been falling since 2016 in favor of fully pre-let projects.
Foreign investor appetite for VEFA transactions in the Greater Paris Region remained strong over 2018 with 9 acquisitions, representing €653 million, almost all of which were for speculative projects.