Key office figures and insights for the Greater Paris Region
2020, an unusual year for the rental market but more than satisfying for the investment 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.
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.