Office Rental Market - October 2018

DOWNLOAD 2017 CATELLA PROPERTY'S ANNUAL STUDY

* required fields
pdf-cover

Take-up levels in the greater Paris region have been particularly high in H1 2018, reaching 1.33 million sqm, which hasn't occurred since 2008.

 

After a robust Q2,Q3 2018 recorded a 17% y-o-y decrease, with a take-up of only 503,600 sqm.
This slowdown has not however inverted the trend for 2018, during which take-up has increased by 6% with 1,874 million sqm.

 

This Q3 slowdown is due to the -37% decrease in large transactions y-o-y. Note the absence of transactions > 20,000 sqm and the 39% decrease in transactions for 5,000-10,000 sqm during this quarter. Yet take-up has nevertheless increased by 24% during the first nine months of the year.

The appeal of the Paris Other and CBD sectors have made it possible for Paris to record a positive result for the first 9 months of the year, with a growth of 5%.

 

Take-up in the Western business district (excluding La Défense) declined by a significant -35% during the first 9 months of the year. However, La Défense made up for its delay with an 18% increase after a 5% decrease in H1.

 

The Southern Rim suffered the most, with a -40% decrease in take-up in the first 9 months of the year.

The vacancy rate in the Paris region has decreased by 0.2%: 5.1% in Ile-de-France with a vacancy rate of 2.2%, and even 1.8% in the CBD, scarcity in Paris is intensifying.

 

This is having a direct impact on rents which continue to rise.
Average rent for new buildings in the CBD now exceeds €700 and stabilised at €712/sqm in the first 9 months of the year.

 

Our vision of the office rental market
The view of Géraldine LATHAM

SUBMARKETS MAP

Take-up levels in the greater Paris region have been particularly high in H1 2018, reaching 1.33 million sqm, which hasn't occurred since 2008.

Géraldine LATHAM

Key figures October 2018

Take-up in Île-de-France region per quarter ​

Source : MBE Conseil according to Immostat

Take-up in Île-de-France region per quarter  ​

  • Takeup for Q3 2018 reached 503,625 sqm, i.e., a decrease of 17% y-o-y. This contributed to a total take-up of 1,874,000 sqm;
     
  •  This slowdown has not reversed the rising trend (+6%) recorded during the first 9 months of the year.

Take-up in Île-de-France region by size

Source : MBE Conseil according to CBRE

Take-up in Île-de-France region by size

  • There were no transactions > 20,000 sqm during Q3, hence the 34% decrease from the start of the year;
     
  • Decrease in transactions for 5,000-10,000 sqm properties: take-up for segment had increased exceptionally by 78% during H1, and now records a 24% increase for the first 9 months of the year;
     
  • Transactions for less than 5,000 sqm have increased by 9% during the first 9 months, thanks to the particularly dynamic 1,000-5,000 sqm segment.

Take-up in Île-de-France region by geographic area

Source : MBE Conseil according to CBRE

Take-up in Île-de-France region by geographic area

  • Paris takeup increased by 5%, primarily thanks to the Other Paris and CBD sectors;
     
  • Western business district takeup decreased by -35%. However this is less than the -58% decrease recorded for H1;
     
  • Takeup in La Défense remains low, but has increased by 18% after an initial 5% decrease in H1.
     
  • Takeup has increased dramatically in the Paris suburbs, excluding business districts, thanks to the PériDéfense area - strong take-up for Inner Rims East and South, and for the Outer Rim.

Vacancy rate in Île-de-France

Source: MBE Conseil according to Immostat

Vacancy rate in Île-de-France

  • Vacancy rates have continued to decrease across all sectors;
     
  • 0.2% vacancy rate decrease for Paris and greater Paris region;
     
  • Paris CBD has dropped below the 2% mark (to 1.8%), and to 5.1% in the Paris region.
     
  • The vacancy rate continues to drop in the Western CBD, including La Défense.

Evolution of average weighted rental values for new buildings

Source : MBE Conseil

Evolution of average weighted rental values for new buildings

  • Average rent for new buildings in the CBD has surpassed the €700 threshold, reaching €712/sqm; it remains stable in business districts;
     
  • Rent continued to rise in the Western CBD despite dipping below the €500 mark reached in H1 thanks to large transactions in Issy-les-Moulineaux and La Défense during H1 2018;
     
  • Increases were recorded in Paris suburbs as rent rose above €400 in Montrouge and Nanterre for very large properties.

Selected major transactions over 5,000 sq.m in Q3 2018

Significant transactions for spaces - Octobre 2018
DATETENANT/PURCHASERLETTING/TRANSACTIONSPACE (sq. m)PRICE € / sq. mADDRESSLOCATIONCONDITION
Q3 2018INTERMARCHEL16390310Smart UpCHATILLONNEW
Q3 2018MUREXL15653740FreedomPARIS 16NEW
Q3 2018PUBLICISL15409450Gambetta - VillagePARIS 20NEW
Q3 2018ARSL12361280Le CurveSAINT DENISNEW
Q3 2018WEWORKL118282-4 rue Jules LefebvrePARIS 09Second hand
Q3 2018DALKIA FRANCEL10912410Tour EuropeLA DEFENSESecond hand
Q3 2018BANQUE LAZARDL10563840173 Bd HaussmannPARIS 08NEW
Q3 2018AC NIELSENL7726250SceneoBEZONSNEW
Q3 2018AG2R LA MONDIALEL7450740SynergyPARIS 08NEW
Q3 2018LOUVRE HOTELL6298370Tour VoltaireLA DEFENSESecond hand
Q3 2018INDIGOL6248370Tour VoltaireLA DEFENSESecond hand
Q3 2018MORNING COWORKINGL60002 rue DieuPARIS 10Second hand
Q3 2018DATALOGL575069021 rue de ChateaudunPARIS 09NEW
Q3 2018UCANSSL5582360Le DigitalMONTREUILNEW
Q3 2018MAIRIE DE PARISL5311KadencePARIS 13NEW
Q3 2018BABYLOUL5236300ColombiaBOIS COLOMBESSecond hand
Source: Immostat

Selected major transactions over 5,000 sq.m in Q3 2018