the Greater Paris Region
Key office figures and insights for the Greater Paris Region.
Greater Paris Region market : if performances diverge between investment and rental market, companies and investors are highly selective.
Office take-up for Q4 2022 stood at 602,000 sq m taking the full-year figure for 2022 to 2,108,300 million sq m, representing a +10% year-on-year increase.
After having been relatively stable for the past year, immediate supply in the Greater Paris Region rose by +5% over Q4 with 4,320,000 sq m by the end of December and a vacancy rate of 7.8%.
Appetite for the most established markets is maintaining upward pressure on rental values in the Greater Paris Region where both prime (€940 /sq m/year) and average rents have reached unprecedented levels.
After consistent increases throughout 2022, investments in the Greater Paris Region slowed over Q4 with just €2.5 billion recorded. This took the full-year volume for the Greater Paris Region to €15 billion with a performance that was relatively stable year-on-year (-3%), but which was -30% lower than the average for the last 5 years.
39 transactions for lot sizes over €100 million were recorded in 2022, compared with an average of 57. However, with 6 transactions for lot sizes over €300 million completed earlier in the year, the volume recorded in this segment remained broadly in line with 2021 figures (almost €8 billion).
Further increases in prime yields were seen for all asset types. Levels now stand at 3.25% for offices in the CBD, 4.15% for logistics and 5.15% for industrial.