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Office Market Report Q4 2019

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The French economy has shown good resilience with robust domestic demand, high business investment and falling unemployment.

 

   icon_declin    icon_immeuble   icon_trophee 
           
            

A year down

               

The 1st Periphery is asserting itself

               

Record rents

     

 

The instability seen in the global political and economic climate over 2019 has started to subside. The Eurozone (and the French economy in particular) performed well due monetary support and incentives to boost purchasing power; this resulted in an upturn in household confidence and an improvement in the business climate in the service sector.

Following a lacklustre H1, activity in the commercial real estate market picked up over the second half of the year, limiting the year-on-year reduction in take-up to 10%, with a transaction volume of 2.3 million sq m; this is in line with the 10-year average. 2019 saw strong results over Q4 2019, particularly for major transactions, with positive results for the Inner Suburbs which was the only market to post a year-on-year increase (+8%).

Despite a shift to the suburbs (a trend that was also seen in Q4 2019) Paris remained attractive and accounted for 39%of full-year take-up.

Immediate supply fell for the 5th year in a row. With 2.7 million of availability, 2019 drew to a close with an 8% yearon- year reduction. As a result, the vacancy rate stands at an average of 5% across the region, reflecting a relatively fluid market, but one with significant localised tension.

In the medium term, confirmed supply of large-format spaces will allow for supply renewal of quality buildings with 1.9 million sq m of space (up nearly 26% year on year) particularly in some, such as Paris Centre West, which ended 2019 on a strong upward trend.


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Office Market Report Q4 2019

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Related Experts

Laurence Bouard

DIRECTRICE ETUDES et RECHERCHE

Paris

Graduated in urban planning and member of RICS, Laurence has more than 20 years of experience in the real estate sector. Since 2011, she has been the head of the Research Department at Colliers International France. She provides its expertise on the real estate markets through consulting missions and the production of ad hoc studies.

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