Q4 2021 was very active and take-up was almost equivalent to that of 2019. Thanks to this rebound, Paris region take-up totalled 1,853,400 sq m, i.e., a 32% increase compared with 2020.

The <5,000 sq m segment was most active, particularly in Paris Centre West where demand exceeded even the 2019 peak.

Large transactions were limited in 2021. We did however observe a clear rebound in Q4, when 20 of the 55 large transactions of 2021 were signed. Nevertheless, most leases were for 5,000-10,000 sq m units. Very large transactions were almost completely absent this year.

Geographically speaking, most transactions were in Paris and La Defense. In the context of the pandemic and its correlate rise of remote working, companies are favouring Paris as they seek central sites and locations in lively districts that are easily accessible by
public transport. On the other hand, the dynamism of La Defense is due to the large amount of quality supply available at low rents when compared to Paris.

Supply is scarce in inner Paris, and consequently vacancy rates fell to 4% overall in Paris, and even to 3.5% in the CBD. Supply has meanwhile increased throughout the rest of Paris region, with a vacancy rate of 6.9%.

Strong demand coupled with the contraction of supply in Paris is impacting rents which continue to rise. They reached an average of €805/sq m for new buildings in the CBD; prime rent is €930/sq m.

Conversely, incentives continue to rise. These are up by 24.4% overall in the Paris region, ranging from 18.9% in Paris CBD to 30.8% in La Defense.