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Office Market Report Q3 2019

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The market situation for office real estate in Paris region : the Ile-de-France tertiary market remains rather active with a good 3rd quarter, even if demand over 9 months is on a downward trend.


   icon_trophee    icon_immeuble    icon_declin

 The 1st periphery comes first


 The intermediate surfaces take over


Shortage of offers in Paris



In an extremely uncertain global climate, the French economy is holding up well and presents well-oriented indicators: domestic demand, business climate and falling unemployment. However, external factors weigh on the national economy, which leads economic actors to be be carefull. Despite the shortage of offers, Paris still attracts a significant proportion of transactions. Nevertheless, the first periphery takes over thanks to a more abundant supply.


Bright spell in the market

Despite instability in the global climate and vulnerability in the Eurozone, the French economy remained stable. Domestic demand has bolstered retail trade, unemployment has continued to fall and the business climate has improved since the beginning of the year. Unless there are any external shocks, growth forecasts for the end of 2019 and early 2020 should be upheld. The office market continued to perform well over Q3 2019 and limited the decrease seen in take-up (-11% year on year). 1.7 million sq m was recorded; this is in line with the 10-year average. This reduction was due to a decrease in major transactions (-29% year on year) which was partially offset by a 12%year-on-year increase in the medium space segment. Paris continued to perform well and accounted for 43% of take-up, but a shift in focus to the suburbs was also seen over Q3.


Take-up in the Greater Paris Region has suffered from the significant reduction seen in major transactions (-29% year on year by volume), despite an active Q3 which was back in line with normal transaction numbers (15 over Q3).


Suburbs increasingly attractive

Paris now, Paris always... Despite a slight decrease last quarter (-8 year on year) and very low levels of supply, the capital remains attractive. 43% of transactional activity in 2019 was recorded in Inner Paris with a total volume of 713.000 sq m. In detail, the medium space segment posted an increase (+12% year on year), unlike the small space segment (-6%) and the large space segment for which there was a considerable decrease in the capital (-31% year on year with 180.000 sq m in transactions). Paris is still attracting coworking operators who have stepped up their development in the capital, even though no major transactions were recorded last quarter following 8 over H1 2019.


Office Market Report Q3 2019

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