2022: The year of take-up at 2 million sq m?
|504,000 SQ M||15||7.4%||€950|
|Take-up in Q1 2022||Deals > 5,000 sq m in Q1 2022||Vacancy rate as at 31/03/2022||Prime rent - Paris CBD as at 31/03/2022|
Two years on from Covid 19’s arrival on the global economic stage and the Paris office market has made a promising start to Q1 2022: if it were not for the geopolitical climate linked to the war in Ukraine and the inevitable repercussions for the economy, we could almost believe that the health crisis was behind us. As evidence of this improved climate, 504,000 sq m of office take-up was recorded over Q1 with strong activity seen across all space segments and most markets.
Businesses are therefore once again examining their real estate, re-assessing their fit-outs and their locations while competition for attracting and retaining the best profiles is raising the bar for future office selection.
Central locations, premium space quality and flexibility appear to form a winning trio, meaning a worrying future lies ahead for first-generation, second-hand buildings that were built away from urban centres.
Aside from these real estate considerations, everybody wants to believe that we could once again top the symbolic 2 million sq m level in 2022. This is a realistic scenario, as long as some new conditions are met - both in terms of domestic policy (report written the 19th April 2022) and in inflation linked to rising costs for energy, raw materials and manufacturing in the broadest sense. The outlook for high and long-lasting inflation calls for caution… or at least a degree of moderation in the formulation of recovery in real estate transactions.
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