2015-03-14-莱坊-The_letting_market_-_La_Défense_H1_2015_6页_948kb

La Défense Office Market Summary for H1 2015

• Market performance declined by 43% in lease-up activity compared to H1 2014, reflecting a weak start to 2015. This decline was against a backdrop of exceptionally strong activity in 2014, which saw the market near record highs. Turnaround in 2014 stemmed from advertised rents and rationalization efforts.

• Supply and vacancy showed high volatility: the vacancy rate reached 11.6%, one of the highest in the Paris region. This stabilized after a rise in 2013-2014, potentially leading to a bear market in 2015. Grade A supply decreased but remains abundant in La Défense, at 36% of total supply, with secondary spaces preferred by users due to cost savings.

• Rents improved slightly, with prime rent at €540/ sq m/year, marking a recovery after three years of stagnation. However, most transactions occurred at lower rates (below €500), and incentives from the «sale» season ended by 2015.

• Future deliveries are constrained; new office areas are mostly pre-let under renewal plans, with no significant speculative programs expected until late 2017-2018. The managing body aims to regulate delivery volumes to prevent supply peaks.

• Overall, while La Défense demonstrated resilience in high-end segments, cost pressures and structural supply issues suggest a challenging market outlook for 2015.