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New confidence in Paris office market

5th December 2014

New confidence in Paris office market

News in Europe isn’t all bad. Reports show that the Paris office market is bouncing back, with investment increasing nearly 40% year on year.  

The analysis, carried out by Knight Frank, establishes that in the first three quarters of this year, transaction volumes rose to £8.62 billion with deal volumes totalling nearly £12 billion. These figures represent the highest since the last peak, before the recession, in 2007. 

The figures for take-up of office space in Paris show increases of 13.2%, representing 1.4 million square feet, with experts predicting a take-up figure of 2 million square feet for the entirety of 2014. 

Vacancy rates averaged 7.2%, with Paris’ centre having vacancy rates of less than 6%, increasing to 11% in other areas such as La Defense. 

The figures have been influenced by top-end deals to companies such as L’Oreal and KPMG, and though they don’t necessarily reflect the economy as a whole, the report will be welcomed by investors in the French market. The improvement is particularly notable given the market’s poor performance just two years ago during 2012. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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