Key office figures and insights for the Greater Paris Region
H1 2019
Key points:
Leasing market
The Greater Paris Region office market was back within the average range with just over 1.1 million sq m of transactions over H1 2019 (-19% year on year).
Each space segment still accounted for around a third of the space transacted over the first 6 months of the year.
There was a further decrease in availability in the Greater Paris Region with 2,856,000 sq m of vacant space by the end of June 2019 (-7% year on year), representing a vacancy rate of 5.3%.
Prime and average rental values rose across the vast majority of markets in the Greater Paris Region, the benchmark prime rent in the CBD now stands at €830 per sq m/year.
Investment market
Almost €7.2 billion was invested in the Greater Paris Region over Q2 2019, taking the year-to-date investment volume to €9.9 billion.
These results were largely due to good activity for transactions with lot sizes over €100 million and 2 transactions for over €1 billion in particular.
With €8.8 billion in investments, office assets remained firmly in the majority (89%).
Foreign investors remained active over H1 2019 (32% of activity).
Prime office yields, stable for several quarters, decreased in several submarkets in the Greater Paris Region over the last 3 months. At 2.75%, prime real estate in the Paris CBD offers a risk premium of 275 basis points compared with the OAT risk-free rate (-0.004% as at end June).
