Key office figures and insights for the Greater Paris Region
2020, an unusual year for the rental market but more than satisfying for the investment market.
Take-up in the Greater Paris Region stood at just 330,000 sq m over Q1 2021; this represents a 30% year-on-year decrease and is -39% lower than the 10-year average.
Following an initial increase at the end of 2020, activity in the large space segment continued to rise. 13 transactions for spaces over 5,000 sq m were therefore recorded over the first 3 months of 2021 (vs. 10 in Q1 2020).
Immediate supply in the Greater Paris Region continued to rise and now stands at 3,787,000 sq m (+30%), taking the regional vacancy rate to 6.9%.
The impact of health crisis may still not have affected prime rental values, which stand at €930 per sq m/year in the Paris CBD, but average rents for second-hand space have started to stabilise.
€3.2 billion was invested in the Greater Paris Region over Q1 2021; this may be 38% lower than the exceptional performance seen in Q1 2020 but is still in line with the average for the last 5 years.
The proportion of office investments reached a record of 94% (€3 billion) with investors mainly targeting core assets.
Following the adjustments seen over Q4 2020, prime yields remained unchanged this quarter.
The market was dominated by French investors who accounted for 75% of the overall volume; this represents a record market share and was particularly due to the withdrawal of foreign investors during the health crisis.