Key office figures and insights for the Greater Paris Region.
Q3 2021
Getting (almost) back to normal on the rental market, considerable slowdown in investment volume
Leasing Market
Thanks to strong activity in July, ~406,000 sqm of take-up was recorded over Q3. This took the year-to-date figure to over 1.2 million sqm. The difference against the 10-year average has further narrowed as the market gradually returns to normal.
36 transactions were concluded in the large space segment (+21 year on year); these were concentrated in the 5,000 - 10,000 sqm segment.
Immediate supply appears to have stabilised at the end of September with 3,992,000 sq m of office space with no change in the vacancy rate (7.3%).
Once again, there was little change in rental values. The prime rent therefore stood at €920 per sqm/year in the Paris CBD and €540 per sqm/year in La Défense.
Investment market
Activity continued to slow over Q3 with an investment volume of just €2.9 billion for the Greater Paris Region - this is the lowest on record for the last 5 years. This took the year-to-date investment volume to €8.3 billion, representing a -32% year-on-year decrease with figures -36% lower than the 5-year average.
Offices were largely in the majority and accounted for 85% of the investment volume by the end of September.
Lower volumes were recorded across all segments apart from the €50-€100 million segment where the volume rose by +83% year on year with €1.8 billion in investments. This was the only segment to outperform the 10-year average.
As in Q2, foreign investor activity remained strong over Q3 with non-domestic investors accounting for half of investments. Year to date, their market share stands at 38%.
