Key office figures and insights for the Greater Paris Region
Q4 2020
2020, an unusual year for the rental market but more than satisfying for the investment market.
Leasing Market
Office take-up for Q4 2020 stood at 409,000 sq m taking the full-year figure for 2020 to 1.3 million sq m.
Year-on-year decreases were recorded across all space segments ranging from -35% in the small space segment to -55% in the large space segment.
With a volume of 3,295,000 sq m by the end of Q3, immediate supply in the Greater Paris Region continued to rise over Q4 to 3,683,000 sq m (+12%), taking the regional vacancy rate to 6.8%.
The effects of the COVID-19 epidemic have still not had an impact on prime rental values with those for Paris reaching €930/sq m/year.
Investment market
In 2020, a total of €19.1 billion was invested in the Greater Paris Region; this is -33% lower than the record set in 2019 but remains in line with the figures seen in 2015, 2016 and 2017.
With €15.7 billion in investments by the end of the year, office assets remained firmly in the majority (82%).
With investors focussing their attention on core refuge assets, yield compression was seen for prime office yields in the CBD with levels falling to 2.50% while increases were seen in the less well-established markets of the Inner and Outer Suburbs.
The market was dominated by French investors with 71% of the overall volume: a near record market share and an increase compared with 2019 which was particularly due to the withdrawal of foreign investors during the pandemic.
