2015-12-31-莱坊-Le_marché_locatif_QCA_4T_2016_13页_545kb

Paris CBD Leasing Market Summary (2016)

• Leasing Activity: In 2016, the Paris CBD saw a +3% increase in transactional activity, with a take-up volume of 450,100 sq m, exceeding the regional average increase. This growth, despite strong 2015 results, highlights the CBD's resilience and key role in the Paris region market.

• Market Share: The CBD accounted for 18% of the region's total transactional activity in 2016, up from below 15% in the early 2000s, indicating its strengthened position.

• Supply and Vacancy: The vacancy rate was low at 3.9%, well below the regional average of 6.6%, confirming an under-supply situation. All surface areas delivered in 2016 were absorbed, but shortages may constrain future growth.

• Grade A Supply: A notable scarcity of Grade A (new or restructured) supply persists, with high demand driving user preference for prestige and efficiency, which justifies higher rental costs.

• Rental Changes: High-end rents rose to €770/sq m/year by end-2016, ending a prolonged period of stagnation, due to factors like technical sophistication and location. Average rents also increased.

• Transactions: Large surface area deals dominated, with a shift towards efficient spaces, supporting higher take-up volumes.

• Future Outlook: Expectations of increased new completions in 2017 could address shortages, but pre-letting for high-quality properties may limit absorption gains.