2014-12-31-莱坊-The_letting_market_-_Paris_CBD_Q3_2015_8页_1mb

THE LETTING MARKET - Q3 2015: PARIS CBD SUMMARY

Overview

• Transactional activity in the Paris CBD has shown dynamism since mid-2015, with a significant increase (+4%) in take-up from Q3 2014, reaching 298,700 sq m.
• The CBD's share of regional transactional activity in Q3 2015 was 20%, higher than the 16% average since 2011.

Activity by Surface Area

• Small (<1000 sq m) and medium-sized (1000-5000 sq m) surface areas (+30% and +16%) showed the most dynamic growth in transactions, while large transactions (>5000 sq m) maintained moderate activity but were not typically core market segments.
• Large transactions in the CBD increased from four since 2015 start, compared to normal lower frequency.
• Across all segments in Q3 2015, Green Grade A constituted the majority (19%) of large transactions.

Supply and Vacancy

• The CBD maintains a very low vacancy rate (4.9% in Q3 2015), well below the Ile-de-France average (7.3%).
• There is a risk of supply shortage; consumption of Grade A space decreased from 68,100 sq m in 2015 (average annual 59,000 sq m vs 75,000 two years prior). Most new deliveries market post-construction or are pre-let before Q4 2018.
• Vacancy rates fell over the past six months, contributing to the potential supply shortage heading into 2016 and 2017.

Rents

• Prime rent in the CBD has stabilized at €750/sqm/year since late 2013 after transactions involving companies like Hermès, Clifford Chance, and Exane (#Cloud).
• Average rent was €536/sqm/year in Q3 2015, an increase of 5.9% from Q3 2014's €506.
• Prices remain stable despite strong transactional activity. Some transactions (e.g., Exane (#Cloud)) reached premium levels above €800/sqm/year, previously seen only in Western CBD ('Golden Triangle'), appearing now in the Financial City.
• Lack of Grade A supply hinders increases in average absorption rates.

Summary of Key Metrics Q3 2015 (CBD vs. Ile-de-France)

• Take up: +3.9% (298,700 sq m) vs 20.0% (Annual for Ile-de-France)
• Stock: -1.9% (-1.9%) vs N/A
• Immediate supply: -6.1% (-6.1%) vs 8.2% (Q3 2015 share for Ile-de-France)
• Vacancy rate: Not applicable vs 7.3% (Ile-de-France)
• Average rent: +5.9% (€536) vs €324 (Ile-de-France)
• Prime rent: Stable at €750/sqm/year vs Stable at €750/sqm/year (Ile-de-France)