The office market in
the Greater Paris Region
Overview of the office leasing and investment markets in Paris Region.
Quarter 4, 2018
Active Greater Paris Region market, particularly with record investment performance
642,000 sq m of office space was transacted in the Greater Paris Region over Q4 2018 taking the full-year take-up performance to over 2.5 million sq m (-5% year on year).
The medium space segment (1,000 - 5,000 sq m) was the only one to post a year-on-year increase in activity (+8% by number and by volume).
As at the end of December 2018, immediate supply in the Greater Paris Region stabilised at under 3 million sq m (-10% year on year) for the second consecutive quarter.
Prime rental values posted a reasonable year-on-year increase in most markets across the Greater Paris Region.
Following a slowdown over Q3, the Greater Paris Region investment market ended 2018 with a record performance of over €10 billion in investments over the last three months of the year.
The full-year investment volume for the Greater Paris Region therefore stands at €23.1 billion - a record level representing a 19% year-on-year increase which is over 70% higher than the long-period average.
62 transactions for lot sizes over €100 million were recorded over 2018 with a total of €14.7 billion, or 64% of the overall volume.
Foreign investors made a strong return to the French investment market towards the end of 2017 and continued to be highly active throughout 2018 accounting for 44% of the activity recorded in the Greater Paris Region.