2022-07-29-莱坊-European_Office_Dashboard_-_Paris_IDF_Q2_2022_2页_318kb

Paris - Île-de-France Office Market Summary (Q2 2022)

Core Content Overview

This report provides an analysis of the office market in the Île-de-France region (Greater Paris) for Q2 2022, highlighting key performance indicators such as take-up, vacancy rates, and prime rents. It also includes insights into broader economic trends affecting the market, including workplace mobility, employment expectations, and the unemployment rate.

Key Market Figures

• Total Take-up in Q2 2022: 534,733 sqm
• Take-up in H1 2022: 1,090,000 sqm, representing a 33% increase compared to the same period in 2021
• Take-up compared to 10-year average: 7% above the usual benchmarks for the region
• Vacancy Rate in Q2 2022: 7.2%
• 5-Year Average Vacancy Rate: 6.1%
• Prime Rent (PSQM): €455
• Year-on-Year Rent Change: 7.1%

Main Trends and Insights

1. Occupier Activity

• The office market in Île-de-France saw a strong take-up in the first half of 2022, surpassing historical averages.
• Grade A offices dominated the market, accounting for 80% of the take-up for spaces over 5,000 sqm, up from 74% in the past decade.
• This indicates a growing preference for high-quality, environmentally sustainable office spaces among occupiers.

2. Supply Dynamics

• There is a significant amount of immediate supply available, with over 380,000 sqm of newly-restructured office space delivered in H1 2022.
• An additional 700,000 sqm is expected by the end of the year, with 72% still available for lease.
• This suggests that the market is well-supplied, which could impact rental rates and occupancy levels in the near future.

3. Workplace Mobility

• Despite high Covid-19 case numbers, workplace mobility in Île-de-France is on the rise.
• This indicates a gradual return to in-person work, which is a positive sign for the office market.

4. Employment Expectations

• Employment expectations in the service sector in France have slowed, and the overall labour market outlook is less favourable due to economic headwinds.
• Sectors such as personal services, hospitality, and retail are particularly vulnerable to the current economic climate.

5. Unemployment Rate

• The French unemployment rate is expected to increase slightly by the end of the year, driven by a slowdown in economic activity and a rise in bankruptcies and corporate insolvencies.
• The unemployment rate is compared to the Euro Area, showing a similar trend in the broader European context.

6. Service Sector PMI

• The Services PMI in France declined for a second consecutive month in June but remained in expansionary territory.
• Economic uncertainty and high inflationary pressures are dampening demand in the sector.

Key Economic Context

• The French office market is showing resilience despite the ongoing economic challenges.
• The return to office spaces is being driven by improved workplace mobility and occupier demand for high-quality environments.
• However, the service sector is facing headwinds, which could affect the overall demand for office space in the region.

Contacts

Local Research Contact

• David Bourla
• Title: Partner, Chief Economist & Head of Research
• Email: david.bourla@fr.knightfrank.com
• Phone: +33143165575

Local Office Occupier Contact

• Guillaume Raquillet
• Title: Head of Office Agency
• Email: guillaume.raquillet@fr.knightfrank.com
• Phone: +33143168886

London Contact

• Colin Fitzgerald
• Title: Global Portfolio Solutions EMEA
• Email: colin.fitzgerald@knightfrank.com
• Phone: +44 20 7861 1203

Disclaimer

• Knight Frank Research provides strategic advice and consultancy services to a wide range of clients.
• This report is for general information only and not to be relied upon in any way.
• All information is for personal use and not for commercial third-party use.
• Knight Frank LLP accepts no responsibility or liability for any loss or damage resulting from the use of this report.