Key office figures and insights for the Greater Paris Region.
Getting (almost) back to normal on the rental market, considerable slowdown in investment volume
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.
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%.