After a take-up decline of -41% in 2020, and despite a low take-up in Q1 2021, a slight recovery has begun on the >5,000 sqm segment. 13 transactions >5,000 sqm were signed in Q1 2021, versus 10 the previous year.
However, average transaction size contracted significantly, which explains the -42% decline in volume of transactions >5,000 sqm.
The small and medium surface area segment performed better: take-up fell by only -19% in the Paris region and -6% in Paris (only -3% in the CBD).
Vacancy rates have increased significantly in one year, but remain balanced in Paris.
Yet there has been little or no impact on rents (excluding La Défense). Rent for new space is actually rising in Paris CBD.
Incentives are currently the main adjustment variable, averaging -23% in the Paris region for surface areas >1,000 sqm.
It is currently difficult to forecast take-up over the course of the coming quarters.
The economic growth outlook for 2021 remains positive (+5%). Yet a sustainable recovery will only be possible if the vaccination programme accelerates and the health crisis finally stabilises. In this case, it is likely that companies will once again start to take decisions and move beyond the wait and see approach that dominated 2020, given this crisis is not specific to real estate.
fter a take-up decline of -41% in 2020, and despite a low take-up in Q1 2021, a slight recovery has begun on the >5,000 sqm segment.