2023-07-26-莱坊-European_Office_Dashboard_-_Paris_CBD_Q2_2023_2页_545kb

Summary of Occupier Market Analysis

Overview

This report, updated quarterly, provides a concise synopsis of occupier activity in Europe's office markets, focusing on Q2 2023 data from Knight Frank Research. Key metrics include take-up, vacancy rates, prime rent, and economic indicators, along with contact information for further details.

Occupier Market in Paris CBD

• Take-up: In Q2 2023, 115,006 square meters (sqm) were taken up in the Paris Central Business District (CBD), a 14% increase from Q2 2022. The first-half-year total is 201,497 sqm, 12% less than H1 2022 but closer to the 10-year average.
• Vacancy Rate: Stood at 2.6% in Q2, unchanged, with four large transactions (over 5,000 sqm), the largest being Rothschild & Co's 20,500 sqm deal in the 8th arrondissement.
• Prime Rent: Held steady at €980 per square meter per annum, a 3% year-on-year rise, driven by supply shortages.
• Sector Performance: Small to medium-sized enterprises (SMEs) and segments like finance and luxury performed well, with properties totaling under 100,000 sqm in construction completions expected for 2023, including a 55% pre-leasing rate for pipeline projects.

Economic Indicators

• New Businesses: Growth in France over the past 7 years, stabilizing post-pandemic.
• Unemployment Rate: 7.1% in France, forecasted to rise moderately in 2024–2025 but remain below historical levels.
• Service Employment Expectations: Positive outlook but declined in Q2 2023, with the Services PMI falling to 48 in June, entering contractionary territory due to weaker demand.

Contact Details

• Local Research Contacts: David Bourla, Guillaume Raquillet, and Colin Fitzgerald, providing analysis and head of office agency, occupier strategy, etc.