Savills News

Paris office take up continues on upwards trajectory, says Savills

Take up of office space in Paris reached 1.8 million sq m at the end of the third quarter of 2018, up 6 per cent on the same point in 2017, with figures anticipating a strong level of growth for the entirety of 2018.

According to the international real estate advisor, most Ile-de-France markets are riding the wave with take-up rising by 5 per cent in the centre of Paris, 18 per cent in La Defense, 11 per cent and 25 per cent in the inner and outer suburbs respectively. Despite shrinking supply, the CBD market still performed last year’s results by 2.3 per cent, thanks to a large number of lettings for smaller offices between 1,000 – 5,000 sq m (+19 per cent year-on-year).

Despite demand for smaller office spaces, the number of lettings exceeding 5,000 sq m  remains one of the drivers of the sector, representing 40 per cent of take up. Offices of this size have been particularly of interest to co-working outfits – especially in central Paris where co-working companies have leased more than 70,000 sq m since the start of the year. However, with supply dwindling, they are also looking further afield, particularly in the 3rd, 4th, 10th and 11th arrondissements. 

Speaking on the report, Bertrand Renaudeau of Arc, Head of Agency, Savills France, comments: “This is an interesting time for the office market in Paris. With low supply/vacancy rates and high demand, especially in the heart of the city, occupiers are being forced to explore other options and, as our research highlights, places such as La Defense and Paris Centre West remain very popular.

“As a result of this trend, rents are increasing at a rapid rate – in some places as much as 20 per cent y-o-y – due not only to a decrease in stock but also an increase in high-spec buildings. We will have to wait and see what 2019 brings, but early indications look like this trend will continue on an upwards trajectory.”

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