2016 FRENCH MARKET
REPORT
CORPORATE REAL ESTATE
2016 FRENCH MARKET REPORT
PUBLICATION DIRECTOR
VALÉRIE MELLUL
PUBLICATION EDITOR
ISABELLE ASSENS
RESEARCH
CLÉMENT BOUDOU
CINDY EMOND
LUCIE MATHIEU
EDITORIAL
REAL ESTATE PROJECT
KEY DATA
PRIME YIELD
BUSINESS
DISTRICTS
GRAND PARIS
Dear customers and readers,
At Nexity Conseil et Transaction, our ambition is clear
and simple: we strive to support your commercial
real estate projects. We put our expertise at your
service, providing a bespoke analysis of your needs
and developing appropriate action plans.
Because a real estate project always drives
performance and/or transformation, you have
indicated the importance of clear, readily-available
information on market data and trends. Our 2016
French Market Report aims to respond to this need.
Some key figures:
In 2015, €23 billion was invested in commercial
real estate in France.
Office space in the Ile-de-France represented 65%
of this volume
and was negotiated at a prime yield of 3.25%.
During our recent survey, which sought to identify your
expectations with regard to research, you asked that we
focus on key markets and on specific issues. Therefore, in
this annual publication you will find:
- maps and analyses covering the main business
districts in Paris and Inner Suburbs,
- detailed figures and highlights concerning the Outer
Suburbs,
- information about the major Grand Paris project, which
offers a forward-looking view of the tertiary markets in the
Ile-de-France,
- a chapter devoted to logistics and light industrial
premises.
We hope that our 2016 Market Analysis will be a useful
tool as you plan your future strategy. We would be happy to
provide any further information you may require.
Happy reading,
It posted annual take-up of 2.2 million m²,
of which 45% was in Paris and 35% was in the
Inner Western Suburbs.
Isabelle Assens, Head of Research
Nexity Conseil et Transaction
DATA AT END 2015
INVESTMENT IN FRANCE
23 BILLION
€
PARIS REGION OFFICE TAKE-UP
2.2 MILLION M
2
CONTENTS
The economy and investment in corporate real estate
04 Real estate in its economic and financial environment
05 Investment in France
Office property in the Ile-de-France region
10 12 14 16 18 20 21 22 Take-up
Transactions > 5,000 m²
Movements of large corporates
Rents
Supply
Future supply
Outlook for 2016
Map of Grand Paris
Logistics and light industrial premises
25 Logistics in France
29 Light industrial premises in the Ile-de-France region
Appendix
30 Terminology
2016 FRENCH MARKET REPORT | 4
REAL ESTATE IN IT’S ECONOMIC AND FINANCIAL ENVIRONMENT
A SLUGGISH RECOVERY SHOULD GAIN
TRACTION IN 2016
FRENCH GDP GROWTH (%)
1.7%
2.0%
1.1%
Sources: INSEE, OFCE
3 POSITIVE FACTORS
.
OIL PRICE
37$
PER BARREL
10-YR GOV. BOND RATE
0.995%
1 NEGATIVE FACTOR
UNEMPLOYMENT
RATE
10%
Data at 31 December 2015
2017 (p)
2016 (p)
2015
2014
2013
2012
2011
2010
2009
2008
2007
0.0%
2005
2006
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0
-2.5
-3.0
-3.5
2.5%
Like other European countries during the past year, France has benefited
from low oil prices between $45 to $50 per barrel, which have continued
to decline in early 2016, a €/$ exchange rate at barely 1.1, historically
low credit costs due to quantitative easing, and less restrictive
budgetary policies. The ECB decision on 3 December 2015 to extend
its monthly €60 billion liquidity injections to March 2017, bringing the
total to €1,500 billion, will continue to stimulate the European economy.
Nevertheless, French growth is sliding and inflation is stagnant. 2014
ended with GDP up by only 0.2%, with 2015 forecasts currently at 1.1%.
This growth level remains consistently below the euro zone as a whole
(0.9% in 2014, 1.5% expected in 2015). Since the subprime crisis,
the slowdown in accumulated investment in France has weighed on
performance of the various economic actors.
In spite of everything, 2016 should see a recovery, and rising business
investment rates could approach 4% according to the OFCE (French
Economic Observatory). The cost of capital remains attractive since
interest rates remain especially low (10 year French government bond
"OAT" at around 1% and 3 month Euribor negative at -0.13% at the end
of December 2015), business margins have recovered since mid-2014,
particularly due to the CICE scheme (tax credit to support employment
competitiveness), and their business outlook is improving.
This recovery scenario remains uncertain due to the volatility of outside
factors as well as slowdowns related to both private and public debt
reduction. Though France’s commitments to external operations works
against a rapid return to a balanced budget, the French economy should
start to pick up steam in 2016, reaching 1% growth in GDP during the
first half of the year according to INSEE, achieving 1.6% to 1.8% for the
year, and perhaps 2% in 2017. The quarterly pace of GDP growth should
swing between 0.4 and 0.6% and, as a result of this stabilisation, the
public deficit should fall to 2.7% by 2017, versus 3.7% in 2015.
Finally, the employment rate, which has remained above 10% in
mainland France, should gradually decrease starting in 2016, in the
best case reaching 9.4% at the end of 2017. Recent statements by the
government should help restore balance to the employment market
with 500,000 training opportunities intended to facilitate re-entry to
the workplace, and measures to support employment with small and
medium-sized businesses.
2016 FRENCH MARKET REPORT | 5
A HIGH-VOLUME MARKET
INVESTMENT IN CORPORATE REAL ESTATE IN FRANCE
(€BN)
30
25
23
20
€23 billion was invested in commercial property this year, a slight
decline compared with the €25 billion committed during 2014. This
amount represents approximately 1% of national GDP in 2015, and
the French market - which is both deep and diversified - attracts both
domestic and international buyers.
On the whole, the past year held few surprises: the breakdown of
commitments, whether by asset class, geographic region or transaction
size, changed little compared with 2014.
15
10
5
0
investment
INVESTMENT IN FRANCE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total excl. giga-deals
Giga-deals >1€ Bn
Source: Nexity Conseil et Transaction
GECINA’s consolidated purchase from IVANHOÉ CAMBRIDGE of the head
offices of ENGIE in La Défense and of PSA at Avenue de la Grande Armée
in Paris 16th arrondissement was the only acquisition over €1 billion
signed in 2015, contrasting with 3 massive deals during 2014. Despite a
growing number of large transactions over the past 4 or 5 years, sales of
such scale remain the exception.
ILE-DE-FRANCE OFFICES:
65%
OF 2015 VOLUMES
BREAKDOWN IN 2015 COMMITMENTS
BY SEGMENT
15% 19%
20%
16%
30%
Mega-deals continue to dominate as in previous years, reducing the
total number of transactions (480 transactions in 2015 compared with
500 in 2014). Certain trophy assets changed hands during 2015, such as
a boutique on Avenue Montaigne which sold for a market value in excess
of €100,000/m². In addition, portfolio sales, which are frequently panEuropean in nature, boosted volume with 22 sales that included assets
located in mainland France. These French assets included in these
transactions had an estimated value of €6.5 billion.
NATIONALITY OF BUYERS IN 2015
< €50 M
65%
10% 25%
€50 to 100 M
€100 to 200 M
€200 to 500 M
> €500 M
Source: Nexity Conseil et Transaction
Source: Nexity Conseil et Transaction
70 TRANSACTIONS > €100 M:
2/3 OF 2015 VOLUMES
ct.nexity.fr
2016 FRENCH MARKET REPORT | 6
INVESTMENT IN FRANCE
CONTINUED SHORTAGE OF PROPERTIES ON
THE MARKET
PORFOLIO SALES > €80 M IN FRANCE
€ Bn
8
Number
25
Another notable trend over the past several years was accentuated
in 2015: properties for sale on the market are scarce, with investors
divided between the opportunity to realise capital gains and the
challenges faced when allocating capital to new property acquisitions.
22
7
6
20
5
15
4
3
10
9
2011
2012
2
Thus, in today’s competitive market, more than 10 offers are often
received for a single property, while a year ago sellers would have been
pleased to receive five. Trophy assets and value-added products are
especially impacted by the lack of supply. For highly sought-after core /
core + assets, supply is increasingly diverse and buildings, which had
not sold when put on the market in 2014, bolstered supply this year.
Investors are also more frequently planning to sell their healthcare and
hotel asset portfolios, which diversifies core supply while meeting the
growing demand for managed property.
15
10
10
1
0
2013
2014
2015
5
Source: Nexity Conseil et Transaction
RESOUNDING SUCCESS OF SPECULATIVE
OFF-PLAN DEVELOPMENTS (VEFA)
PORTFOLIO SALES:
€20 BN
Lethargic supply, combined with tenants’ preference for high-quality
buildings, explains investor appetite for VEFAs (off-plan developments)
in 2015. With 42 transactions totalling €3.1 billion, it was a record
year marked by a rise in speculative sales, even though investors are
assessing their risk on a case-by-case basis. In the Ile-de-France (IDF),
17 speculative transactions were identified, totalling €1.3 billion. Among
the most emblematic is Smartside, a 40,350 m² project to be delivered
in 2017, developed by NEXITY and sold to EDF INVEST. The Paris region
is at the heart of current events, and the Grand Paris project has
attracted interest: several blocks in the Clichy-Batignolles area, which is
currently undergoing redevelopment, have found buyers. VEFAs, which
have been limited to the Paris region to date, spread to other regions in
2015. These sales took place primarily in Lyon, Lille and Toulouse, and
were sometimes speculative ("en blanc") or semi-speculative ("en gris")
in nature.
IN THE LAST 5 YEARS
SELECTION OF OFF-PLAN SALES IN ILE-DE-FRANCE, REFLECTING PRIME YIELDS AROUND 6%
Building
City
Surface area
Price
Clichy (92)
40,350 m²
Confidential
ÉLÉMENTS
Paris 13
16,000 m²
LOT 07
Paris 17
VIEW
BERCY CRISTAL
SMART SIDE
Buyer
Seller
EDF INVEST
NEXITY
€140 M
AVIVA INVESTORS
VINCI IMMOBILIER
24,200 m²
€140 M
CARDIF
EMERIGE
Paris 20
21,375 m²
Confidential
AMUNDI
NEXITY / CRÉDIT AGRICOLE IMMOBILIER
Paris 12
15,000 m²
€125 M
CNP ASSURANCES
OGIC
2016 FRENCH MARKET REPORT | 7
investment
INVESTMENT IN FRANCE
PRIME YIELDS CONTINUE TO FALL
PRIME OFFICE RETURNS VS 10-YEAR FRENCH
GOVERMENT BOND RATES
Prime yields for property dropped by approximately 20 basis points each
quarter, ending 2015 at just above 3%. But the deflationary financial
environment has allowed property assets to outperform once again.
Even in the Paris central business district (CBD), where rates have never
been so low, they remain more profitable than most other financial
assets, which have borne the brunt of the decline in 10-year French
government bonds (OAT), which has remained below the 1% barrier for
many months.
8
7
6
5
4
3
225
bps
2
1
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
10-year French government bond rates (OAT)
Prime office yield in Paris CBD
Lower yields in the Paris CBD tend to extend to all prime products. Thus,
new office space in major regional cities or Class A logistics centres
along the North-South axis were sold at 5%, "speculative" office sales
in the Ile-de-France showed a 6% yield and mixed office and light
industrial assets in cities like Montpellier posted yields between 6.5 and
7%. In a competitive market environment, even non-prime buildings distressed assets - saw their yields stall this year. Thus, there has been
an overall decline in yields, but this has not upset the rankings among
products and locations.
Sources : Nexity Conseil et Transaction, Banque de France
2015 PRIME
OFFICE
YIELDS
IN ILE-DE-FRANCE
2015
Prime
office
yields
in Île-de-France
Outer Suburbs
5,50 %
Rest of Inner Suburbs
5,10 %
Paris CBD
3,25 %
Rest of Paris
4,25 %
Inner Western Suburbs
4,50 %
ct.nexity.fr
2016 FRENCH MARKET REPORT | 8
INVESTMENT IN FRANCE
NO PROPERTY BUBBLE ON THE HORIZON
Faced with relentlessly falling prime yields, it makes sense to wonder
whether a property bubble exists. Recall that in 2007, right before the
subprime crisis that triggered a worldwide recession, Paris CBD posted
a 3.6% prime yield. This previous record low has been beaten over the
past several months.
For all that, the current context is very different. First, the risk premium
for property, which was negative in 2007, is currently 225 basis points
above the 10-year OAT rate. In addition, inflow of liquidity supports the
investment market, while in 2007, speculation about bank failures and
the end of financing through commercial mortgage backed securities
(CMBS) triggered a standstill in property acquisitions, which at the time
were being made at loan to value (LTV) ratios above 80% compared with
an average of 50 to 60% today.
Finally, during 2007 many opportunistic investors purchased property
without effectively assessing their risk. Today’s purchasers avoid such
pitfalls.
Thus, at this time there is no property bubble in France.
ACQUISITIONS DECORRELATED FROM THE
LETTING MARKET
On the other hand, a related issue concerns the decorrelation of market
values and prime yields from the letting market. On the one hand,
investors tend to pay a premium for buildings with more secure rent
schedules, with long-term leases signed with first-rate tenants. In
this regard, it is fair to say that there is a decorrelation between the
investment market and the letting market.
UPSIDE > DOWNSIDE
But somewhat paradoxically, investors are reassured by rents which
remain relatively low in France, since they see a potential upside that
exceeds downside risk. In addition, with rent incentives close to 20%
over several quarters, lessors are exhibiting deflationary behaviour with
regard to rents, undertaking renegotiations and using general incentives
to attract new tenants. Despite everything, this decorrelation appears
relative, since the investors themselves are fostering certain trends in
the letting market.
In addition, some investors deliberately choose to acquire vacant Paris
buildings, planning a vacancy period in which they will conduct a major
redevelopment. As an exit strategy, they plan to re-let better-quality
space at higher rents than could have been collected from an existing
tenant. This type of strategy, followed only in central Paris, aims to
achieve maximum value through yields. It favours property location over
rent schedules, adhering to the mantra «location, location, location»
which is frequently heard in the property market. Importantly, it carries
no major risk, since demand for acquisitions is high and supply is scarce
in the capital.
"LOCATION,
LOCATION,
LOCATION"
INCENTIVES:
20%
Another significative investment deal: COVEA bought
from La Française AM a 7,445 m2 empty office building
to be restructured in 8-10 rue du Renard, Paris 4th.
In the eyes of French buyers, growth in rents can be achieved within the
scope of profitable urban projects, or by working the asset to develop
a service offering. Interestingly, foreign investors see more potential
growth in rents, while remaining cautious in the case of tenants in place
and the potential for re-letting the building.
In addition to their main strategy, which aims to maximize short-term
gains, a growing number of buyers are simultaneously developing an
alternative strategy of holding the asset, renovating it and returning it
to the letting market at a higher rent. In this way, institutional investors
become more agile, reflecting their confidence in the property market
over the long-term as well as their ability to seize short to medium-term
opportunities.
2016 FRENCH MARKET REPORT | 9
investment
INVESTMENT IN FRANCE
VERY POSITIVE OUTLOOK FOR 2016
Economic forecasts indicate that both the ECB’s key interest rate and
interest rates across the euro zone will remain low throughout 2016,
even though they will be under greater pressure than in 2015 following
the 0.25% interest rate hike announced by the U.S. Federal Reserve on
16 December 2015.
There has historically been a lag of around one year between interest
rate hikes and rising property yields. Accordingly, next year should see
prime yields stabilize in the second half of the year, following a potential
decline over the 1st half to 2.5%, as was seen in Asia. Sales of certain
luxury boutiques in the capital city’s top districts have already recorded
prime yields below 3%.
PRIME YIELDS IN PARIS
< 3%
Some investors believe that certain assets have become too expensive,
while the potential for value creation remains speculative. But overall,
commercial real estate combines all the conditions that will continue to
attract significant capital from investors around the world. Their reasons
are many:
- To build a portfolio optimised for national investors acting on behalf of
savers. A transfer is happening from low-earning life-insurance policies
to SCPIs (private REITs), which offer a 4.5 to 5% return. Inflows from
these specialised property investment vehicles have probably exceeded
€3.5 billion in 2015, i.e. potentially 15% of volumes to be invested.
- Opportunity for asset managers and estate agents to achieve capital
gains over a very short period of time.
A 2016 YEAR
BETWEEN
€20 AND €25 BN
proving its solid potential for growth despite genuine obstacles.
Completion of property acquisitions remains a long and complicated
process, while the tax increases planned for 2016 do nothing to remedy
the situation. The market continues to be slowed by a shortage of
supply, despite the ongoing disposal of asset portfolios by certain major
institutional investors.
French stakeholders are often limited by regulations that require
minimum holding periods to optimise the tax consequences of
an investment (5 years recommended for OPCI and SCPI property
investment funds, 8 years for life insurance) and by liquidity thresholds
that must be met by management companies. Thus, domestic investors
have relatively long-term strategies which limit the properties likely to
be placed on the market.
With the official creation of 13 new regions in early 2016, certain urban
areas such as Bordeaux, Toulouse, Lille and Strasbourg could attract a
larger number of property investors. Other secondary cities may also
emerge, which could replenish the market. The lack of depth in local
markets continues to dissuade purchasers, but the explosive growth of
the digital economy is transforming a large number of business models,
no doubt leading some investors to adjust their selection criteria in
2016.
- Protection against future oil revenue losses for Middle Eastern
sovereign wealth funds, especially when COP21 has led to a universal
agreement on climate change.
- Overall expansionist strategy of Chinese and Asian investors.
There are many reasons to purchase commercial property, and expected
volume for 2016 should once again reach €20 to €25 billion. Year after
year, France receives approximately 10% of European commitments,
compared with 35% for the United Kingdom. While domestic
stakeholders sometimes look toward the global international market,
foreign investors continue to pay close attention to France. Paris was in
second position for those wishing to diversify their European holdings,
ct.nexity.fr
2016 FRENCH MARKET REPORT | 10
OFFICE TAKE-UP
AN ASYMPTOTE AT 2.2 MILLION M²
ILE-DE-FRANCE REGION OFFICE TAKE-UP
(MILLIONS OF M²)
3.0
2.5
2.2
2.0
In the end, annual take-up totalled 2.16 million m², just above the levels
achieved in 2014. This performance seems somewhat weak considering
the growth of GDP in France, which rose more sharply. However, the
office space market often reacts to the economic environment 12 to
18 months after the fact, leading to hopes that the property cycle will
remain buoyant in 2016 as the recovery builds steam.
1.5
1.0
0.5
0
2005
2007
2009
2011
2013
2015
Source: Nexity Conseil et Transaction
32% OF 1
-HAND OFFICES
The lack of transactions of greater than 5,000 m² was the main
obstacle for the market in 2015. With only 57 recorded transactions,
they represent just 721,000 m² for the year, i.e. 33% of the market as
a whole, a very meagre result. Note than in 2014, 64 transactions were
posted totalling 852,700 m².
Fortunately, transactions concerning medium-sized properties between
1,500 and 5,000 m² performed significantly better. These lettings
correspond to a more diversified kind of tenant, no doubt better able
to respond to a rapidly changing economic environment. In an effort to
market vacant properties, owners tend to offer office space of over 5,000
m² for division, permitting these transactions to translate into highquality office space.
ST
PROPORTION OF OWNER-OCCUPIER SALES
(% OF M²)
Sales
12%
The share of new, redeveloped offices remained at 33% followed by
recent or renovated offices. The poor relation remains older office space
in an average state of repair, which may take many months to market,
especially if it is in an undesirable geographic location.
Lettings
88%
The 2015 market was extremely biased towards more well-established
business districts. The Paris CBD posted very healthy results, while other
Parisian arrondissements were also very active. The Hauts-de-Seine also
performed well, accounting for 37% of take-up despite a decline of some
60,000 m² compared with 2014 and the predictable under-performance
of La Défense. Other communes in the Inner Western Suburbs only
partially offset this decline. The market remained more lacklustre in the
Inner Northern, Eastern and Southern Suburbs.
Source: Nexity Conseil et Transaction
TAKE-UP BY SEGMENT
(MILLIONS OF M²)
1.2
1.0
In addition to lettings, a number of owner-occupier sales took place,
especially in Paris, thanks to interest rates that are more attractive than
ever. All in all, 50 more transactions were recorded than in 2014, with
this thriving market providing effective support for take-up.
0.8
0.6
0.4
0.2
0
2015 held a number of surprises, with activity in each quarter frequently
out of sync with expectations. Following a lacklustre first quarter, the
market revived during the 3rd quarter, during the typically quiet summer
season. This momentum continued into the 4th quarter.
< 600 m2
2011
600 to 1,500 m2 1,500 to 5,000 m2 > 5,000 m2
2012
Source: Nexity Conseil et Transaction
2013
2014
2015
2016 FRENCH MARKET REPORT | 11
OFFICE TAKE-UP
Although market segmentation shifts from one year to the next, it is
striking to note that during the past two years, take-up has trended
toward an asymptote of between 2.1 and 2.2 million m². A number
of dynamics are playing out, rebalancing both transaction size and
geographic distribution, thus providing stability. After a decade marked
by wide variations primarily concerning movements by major occupiers,
the office space market in Ile-de-France has become more agile and
flexible, primarily driven by the internet economy that has spread across
all business sectors.
1.0
0.8
0.6
0.4
0.2
0
75
92
93
94
Outer Suburbs
2011
2012
2013
2014
2015
Source: Nexity Conseil et Transaction
2015
Activity
levels
2015 ACTIVITY
LEVELS
(TAKE-UP/OFFICE
STOCK)
(Take-up / office stock)
>9%
6 % to 9 %
3 % to 6 %
<3%
Villeneuvela-Garenne
Gennevilliers
Saint-Denis
Colombes
BoisColombes Asnièressur-Seine
La GarenneClichy
Colombes
Courbevoie
Nanterre
Bobigny
Pantin
LevalloisPerret
Neuillysur-Seine
Puteaux
Aubervilliers
Saint-Ouen
18
th
17th
19th
9
10
th
Rueil-Malmaison
8th
Suresnes
3rd
1st
16
7th
BoulogneBillancourt
Bagnolet
11
Sèvres
Meudon
14th
Montrouge
Châtillon
Clamart
Bagneux
Fontenayaux-Roses
Le PlessisRobinson
Châtenay-Malabry
St-Mandé
12th
Sceaux
13th
Gentilly
Le KremlinArcueil
Bicêtre
Ivrysur-Seine
Bois de Vincennes
Charentonle-Pont
Le
Perreux
surNogent- Marne
sur-Marne
Fontenaysous-Bois
Vincennes
5th
Issy-les
Vanves
Moulineaux
Malakoff
NeuillyPlaisance
Montreuil
20th
4th
15th
Villemomble
th
6th
Saint-Cloud
Bondy
Rosnysous-Bois
th
2nd
th
Le PréRomainville
St-Gervais
Les Lilas
Noisyle-Sec
Joinville-le-Pont
St-Maurice
Alfortville
MaisonsAlfort
Champignysur-Marne
St-Maur-des-Fossés
Cachan
Bourgla-Reine
Villejuif
L'Haÿles-Roses
Vitry-sur-Seine
Créteil
BonneuilsurMarne
ct.nexity.fr
offices
A MORE AGILE MARKET
TAKE-UP BY DEPARTMENT
(MILLIONS OF M²)
2016 FRENCH MARKET REPORT | 12
TRANSACTIONS >5,000 M²
BREAK POINT IN 2015
TAKE-UP > 5,000 M²
(MILLIONS OF M²)
2015 was once again less auspicious than 2013 for transactions of
greater than 5,000 m². The second half of the year was clearly more
active than the first, but despite everything, transactions of this type
were lacking. They numbered 57, an all-time low, and posted a smaller
average size. No transaction exceeded 45,000 m² which is unusual, with
overall take-up totalling 720,000 m², just one-third of the market.
1.2
1.0
0.8
0.6
Over the course of the year, however, occupiers maintained the
advantage during negotiations, which could lead to major transactions
as the market continues to shift. Property management departments
prefer to renegotiate leases in certain cases, sometimes before the end
of the term, securing lease renewals with no new transaction.
0.4
0.2
0
2005
2007
2009
2011
2013
New and restructured offices
2015
2nd -hand offices
Source: Nexity Conseil et Transaction
50%
INDUSTRIES
BANKING- INSURANCES
ADMINISTRATIONS
NUMBER OF TRANSACTIONS > 5,000 M²
40
35
30
25
20
15
10
5
0
5,000 to 10,000 m2 10,000 to 20,000 m2
2011
2012
Source: Nexity Conseil et Transaction
2013
> 20,000 m2
2014
2015
Built-to-suit office projects and pre-lettings, which were very active in
2014 (45%) fell this year to 35% of the market with 16 transactions.
Major occupiers have no doubt pursued consolidation and cost savings
during the previous years. For bank insurance institutions, industries and
the civil service, these operational and spatial reorganisations are things
of the past.
However, because these three business sectors still hold one-half of
the major accounts market, investors have resumed their speculative
projects. They rely on the future ambitions of tenants, who often take
positions in turnkey projects to be delivered at a later date. In this
framework, there is a risk that excess supply over 5,000 m² already on
the market will not shift, except in Paris. Indeed, occupiers are faced
with a number of choices. By way of example, for its planned relocation
to the Inner Northern or Eastern Suburbs, which will relaunch in early
2016, the Ile-de-France region studied two options: either undertake
construction of new headquarters, or choose an existing building.
Among the selection criteria, public transport service is vital when
the quality and efficiency of the premises becomes again the decisive
factor, even when faced with financial constraints. Relocation will
automatically involve a move to an approved green building, since by
definition all large new buildings meet the latest standards. COP21
is not expected to have much effect, since the real estate sector has
anticipated climatic change relatively well. The only snag is that large
companies, such as certain banks, have announced their intent to reduce
the greenhouse gas emissions of properties they occupy, which could
trigger a number of transactions starting from 2016.
2016 FRENCH MARKET REPORT | 13
TRANSACTIONS >5,000 M²
Number
Volume
of which new and restructured offices
Change vs. 2014
Number
Volume
Change vs. 2014
Paris CBD
8
80,600 m²
6
51,500 m²
Rest of Paris
10
138,300 m²
6
110,500 m²
La Défense
8
80,600 m²
5
46,800 m²
Inner Western Suburbs excl. La Défense
20
295,800 m²
14
222,700 m²
Seine-Saint-Denis
7
73,900 m²
5
61,700 m²
Val-de-Marne
0
0 m²
0
0 m²
Seine-et-Marne
1
14,000 m²
1
14,000 m²
Yvelines
1
12,900 m²
1
12,900 m²
Essonne
2
25,100 m²
0
0 m²
Val-d'Oise
0
0 m²
0
0 m²
Total Ile-de-France
57
721,200 m²
38
520,100 m²
Selection of transactions
SELECTION OF TRANSACTIONS
1
DSAF 1
2
ACCORHOTELS
3
LA POSTE
4
NOVARTIS
5
OCDE 2
6
CHANEL
7
VILLE DE MONTREUIL
8
CARLSON WAGONLIT TRAVEL
9
B2V
10
BLABLACAR.FR
11
INRIA 3
12
BNP PARIBAS
1
2
3
12
Courbevoie
4
Pantin
9
6
10
Rueil-Malmaison
7
2nd
1
5
8
BoulogneBillancourt
2
3
1st
7th
Montreuil
11
12th
Issy-lesMoulineaux
Direction des Services Administratifs et Financiers
Organisation de Coopération et de Développement Économiques
Institut National de Recherche en Informatique et en Automatique
ct.nexity.fr
offices
Transactions > 5,000 m²
2016 FRENCH MARKET REPORT | 14
MOVEMENTS OF LARGE CORPORATES
MAP OF MAIN MOVES BY LARGE USERS
MAP OF MAIN MOVES BY LARGE USERS
Val-d’Oise
5,400 m²
9,800 m²
17,700 m²
Seine-Saint-Denis
104,900 m²
12,000 m²
Hauts-de-Seine
840,800 m²
69,600 m²
63,600 m²
68,000 m²
Paris CBD + 7th
233,400 m²
116,700 m²
6,500 m²
Seine-et-Marne
76,600 m²
20,700 m²
Rest of Paris
135,400 m²
9,400 m²
163,900 m²
28,100 m²
10,400 m²
5,800 m²
Yvelines
Val-de-Marne
116,400 m²
17,700 m²
Essonne
46,300 m²
METHODOLOGY:
For the 170 transactions of greater than 5,000 m² of office space in the
Ile-de-France region recorded between 2013 and 2015, we have studied
the original department and destination department as well as the
reasons for large user movements.
valeurs
Endogenous movements
Exogenous movements
DEFINITIONS:
Endogenous movements: moves by companies within their original
department.
Exogenous movements: moves by companies choosing to leave their
original department.
2016 FRENCH MARKET REPORT | 15
MOVEMENTS OF LARGE CORPORATES
6%
23%
Consolidation
53%
%
15%
Cost savings
Extension
Modernity
Others
3%
Source: Nexity Conseil et Transaction
ENDOGENOUS MOVES:
66%
FROM MOBILITY TO FLEXIBILITY
IN THE MARKET
The geographic distribution of transactions greater than 5,000 m²
shows that Paris and the Inner Western Suburbs clearly dominated the
market in 2015. Although more than half of transactions involved a
move within the same department, 9 companies left Paris for Hauts-deSeine (Neuilly-sur-Seine, La Défense, Issy-les-Moulineaux and RueilMalmaison), while 2 relocated to Seine-Saint-Denis.
Many major occupiers are constantly pursuing financial optimisation,
though not all of them. In addition to approximately ten expansions and
relocations to next-generation buildings, some tenants are returning to
desirable addresses that are consistent with their institutional image
and desire to attract new talent. Paris has achieved a solid breakthrough
this year. Scarce and expensive new supply has found success among
new entrants. The best example of this trend is the letting of 9,500 m²
in the #Cloud Paris building to BLABLACAR, located in the heart of the
second arrondissement. This type of company, which transcends the
start-up business model, is becoming a key player in the future tertiary
market. The ‘uberisation’ of the economy may have its limits, creating
distorted competition for certain products or commercial services, but
it also sparks the desire to take part in a dynamic economy and speeds
innovation and transformation in businesses across a wide range of
sectors.
Many large companies are now questioning their working methods and
the set-up of their offices. Beyond the campus-like feel that attracted
them, tenants are rethinking their property as a way to create well-being
and add value for their employees. ORANGE is testing new concepts
at Villa Bonne Nouvelle, SOCIÉTÉ GÉNÉRALE is planning to operate as
a flex office at Val de Fontenay, co-working spaces are targeting both
independent workers and major groups such as AXA, which has let space
from NEXITY in the Blue Office at Maisons-Laffitte.
Within these "third spaces", interactions between employees of major
companies and innovative start-ups, entrepreneurs and freelance
professionals become a reality. Decision makers in rapidly growing
companies are less susceptible to the implementation of long-term
property development plans which do not suit their rapidly changing
business. Both lessors and developers must adapt their supply in terms
of office space and services, price and contractual flexibility to meet the
changing needs of these occupiers.
Beyond the financial issues, in today’s real estate projects the concept
of geographic mobility in the strictest sense has eased somewhat, while
flexibility is driving a growing number of major moves.
ct.nexity.fr
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REASONS FOR MOVES BY LARGE USERS
2016 FRENCH MARKET REPORT | 16
OFFICE RENTS
RENTS FOR NEW PROPERTIES
APPROXIMATELY TEN DEALS SIGNED
IN PARIS AT A RENT > €700/M²
AVERAGE 1ST-HAND HEADLINE RENTS
(€/M2/YEAR EXCL. TAXES AND CHARGES)
800
Take-up of new and redeveloped office space fell by approximately
20,000 m² compared with 2014, which was itself a disappointing year.
Owners had to come to terms with weak demand, while one year supply
approached 1.3 million m².
700
600
500
400
300
200
H1 2006
H2 2006
H1 2007
H2 2007
H1 2008
H2 2008
H1 2009
H2 2009
H1 2010
H2 2010
H1 2011
H2 2011
H1 2012
H2 2012
H1 2013
H2 2013
H1 2014
H2 2014
H1 2015
H2 2015
100
Despite this observation, signs of a recovery emerged in 2015. The
discrepancy between headline rents and net economic rents stopped
growing wider. Owners were able to maintain their nominal value, while
rent incentives, though high, were no longer rising: an average of 1.5 to
2 months of rent-free periods are granted per year of firm commitment,
even though certain markets still require greater incentives of between
2.5 and 3 months.
Following the budgetary restrictions of previous years, following a
relatively over-supplied market, in 2015 some occupiers have taken
Paris CBD
La Défense
Boulogne-Billancourt
positions in the best buildings within the most prestigious business
Saint-Denis
SQY / Outer Suburbs
districts, where supply is scarce. In the Paris CBD, there was a solid
revival of transactions for rents in excess of €700/m², with about ten
Source: Nexity Conseil et Transaction
deals signed in 2015 versus only 2 during 2014. Substantial efforts by
PRIME HEADLINE RENTS IN ILE-DE-FRANCE
owners over the past two years have allowed the capital to rediscover its
2
(€/M
/YEAR
EXCL. RENTS
TAXES IN
AND
CHARGES) (€ / M² / YEAR EXCL. TAXES AND CHARGES)
appeal. Tenants in the banking, consulting, luxury and internet sectors
PRIME
HEADLINE
ÎLE-DE-FRANCE
have chosen high-end buildings, both redeveloped and renovated. There
is only a slight distinction between new and second hand buildings in
Paris, so long as they both offer outstanding services. Prime rents for
2015 posted a slight increase, reaching €760/m².
Inner Northern Suburbs
Outer Suburbs
325 €
Inner Western Suburbs
575 €
Paris CBD
760 €
230 €
Inner Eastern Suburbs
275 €
Bois de Boulogne
Rest of Paris
760 €
Inner Southern Suburbs
330 €
Bois de Vincennes
This positive trend has extended to the Inner Western Suburbs,
excluding La Défense. Among the 12 contracts signed for new or
redeveloped offices, 4 had a nominal value greater than €450/m². On
the other hand, the rest of the Inner Suburbs posted a 26% drop in new
take-up, which did not encourage a recovery in rental values. Finally, in
the Outer Suburbs, take-up of new properties showed vitality with 20%
growth in volume, primarily in Saint-Quentin-en-Yvelines and Marne-laVallée. However, rental values remain utterly stable in these areas, with
prime rents having difficulty exceeding €220/m².
PRIME RENT:
€760/M²
2016 FRENCH MARKET REPORT | 17
OFFICE RENTS
Representativeness
of the sample (%
of take-up in the
department)
Proportion
of take-up
in the
Ile-de-France
Paris
12
90%
38%
Hauts-de-Seine
14
87%
31%
Seine-Saint-Denis
6
71%
5%
Val-de-Marne
6
70%
3%
Yvelines
9
64%
3%
Essonne
6
62%
2%
Val-d’Oise
4
72%
2%
Seine-et-Marne
3
29%
1%
METHODOLOGY:
Index of second-hand rents in Ile-de-France
Nexity Conseil et Transaction Research Department has put together a rental
index for the Ile-de-France region, based on headline rents for secondhand office space transactions. This quarterly index has been backdated to
01/01/2002. Its general principle consists in fixing the geographic breakdown
of the sample so that locations of transactions from one quarter to the next do
not influence changes in the index.
RENTS FOR SECOND-HAND PROPERTIES:
PRIORITY GIVEN TO QUALITY
Following relative stabilisation at the start of the year, the second-hand
rent index for the Ile-de-France gained 2 points during the second half of
2015. It ended the year at 108.7.
As with rents for new properties, the strength of Parisian take-up has led
to a substantial rise in rents for second hand properties, as occupiers
have generally preferred higher-quality premises. Within the capital,
renovated office increased its share of take-up to 25%, while the secondhand rent index soared by 4 basis points in one year to reach 118.4.
This trend was reversed in the Inner Suburbs, where rental values fell
slightly compared with the end of 2014. Renovated properties recorded
a surprising drop, comprising just 40% of take-up in 2015, compared
with over 60% in 2014. Very few large transactions were signed in the
Inner Suburbs this year, which explains this trend to a large degree. Even
for small and medium spaces, renovated offices found less favour, with
take-up declining by 8%. Recent offices, offered at attractive rents, fared
somewhat better.
In the Outer Suburbs, any similarities between rents for new and
second-hand properties ended. This latter index rose sharply to reach
106.1, as opposed to 101.2 at the end of 2014. This reflected a 30%
increase in take-up of renovated properties. Qualitative repositioning of
supply through light renovation is often an effective strategy to let the
abundant supply that exists within these territories.
Creation of the sample
150
120
108.7
Q1 2015
Q1 2016
Q1 2014
Q1 2013
Q1 2012
Q1 2011
Q1 2010
Q1 2009
Q1 2008
Q1 2007
Q1 2006
Q1 2005
60
Q1 2004
90
Q1 2003
Calculation of the index
The average rent for the last six months of transactions is recorded for each
borough once a quarter. A weighted average rent for the Ile-de-France region
(see creation of the sample) is then calculated and converted to base 100 in
Q1 2002. If there are no transactions listed for the last six months, the average
rent for the previous quarter is used.
INDEX FOR 2ND-HAND OFFICE RENTS IN THE ILE-DE-FRANCE REGION
Q1 2002
More than 12 million m² of second-hand offices were transacted in
220 boroughs between 2006 and 2015. From these, we have selected
60 boroughs accounting for 85% of the transaction volume over the period.
Take-up between 01/01/2006 and 31/12/2015 determines each borough’s
final weighting in the index.
Index for 2nd-hand office rents
CCI
Source: Nexity Conseil et Transaction
ct.nexity.fr
offices
Number of
boroughs in
the sample
Department
2016 FRENCH MARKET REPORT | 18
OFFICE SUPPLY
A YEAR FOR RENOVATIONS
SUPPLY IN THE ILE-DE-FRANCE REGION
(MILLIONS OF M²)
Initial absorption of immediate supply was noted in 2015, with one year
supply absorbed to a lesser degree. They returned to their 2013 levels,
at 3.9 and 5.2 million m² respectively.
6
5
Between 85% and 90% of the 5.5% decline in immediate supply was
attributable to lettings. However, previously insignificant phenomena
became more widespread: some supply was held back for renovation, or
even withdrawn from the market or reconverted to housing or assisted
living facilities, especially in the capital and the Inner Western Suburbs.
4
3
2
1
One year supply was taken up more slowly due to several deliveries
planned for 2016. In Paris, over 110,000 m² new and redeveloped
properties will enter the market, following two buildings within the
Quadrans development (46,000 m²) to be completed this year in the
15th arrondissement. In Hauts-de Seine, where the D2 tower and a
portion of the Majunga Tower in La Défense are vacant, a number offices
under construction are expected for 2016, including 3 in BoulogneBillancourt.
0
1995
2005
2000
2010
2015
One year supply
Immediate supply
Source: Nexity Conseil et Transaction
TYPOLOGY OF ONE YEAR SUPPLY
(MILLIONS OF M²)
5
3.9
4
3
2
1.3
Q1 2016
Q1 2015
Q1 2014
Q1 2012
Q1 2013
Q1 2011
Q1 2010
Q1 2009
Q1 2008
Q1 2007
Q1 2006
Q1 2005
Q1 2003
0
Q1 2004
1
New and restructured offices
2nd-hand offices
In total, the additional 380,000 m² to be delivered in the next
12 months in Ile-de-France, combined with the 900,000 m² in
immediately-available new office space should be enough to meet
demand.
Second-hand supply fell by 2% over a one year period. With the best
renovated properties generating the most interest, certain opportunistic
owners elected to undertake extensive work, and their buildings were
temporarily removed from the supply. This includes Élysées La Défense,
now known as Window, which will offer more than 40,000 m² of
redeveloped office space in 2017. Another example, the Nieuport in
Vélizy-Villacoublay will offer over 57,000 m² of renovated and certified
office space in 2016. High-quality supply is constantly being renewed,
even for offices of less than 5,000 m², where renovations are proceeding
to achieve a new record of 863,000 m².
On the other hand, vigorous take-up in Paris will result in a slight
reduction of supply in the capital this year, from 1.4 million m² at the
end of 2014 to 1.2 million at the end of 2015. This level does not begin
to approach the Hauts-de-Seine, the department with the region’s
greatest supply at 2.1 million m².
Source: Nexity Conseil et Transaction
SUPPLY BY AREA
(MILLIONS OF M²)
At the current rate of transactions, it will take nearly three years to fully
market the inventory in the Inner Western Suburbs. Nevertheless, offices
with greater than 5,000 m² available are relatively new, well-served by
public transport and dividable by up to 80%, making high-quality space
available to medium-sized businesses while accelerating the letting of
these buildings.
Paris
Hauts-de-Seine
Rest of Inner
Suburbs
Outer Suburbs
0
0.5
2011
Source: Nexity Conseil et Transaction
1.0
2012
1.5
2013
2.0
2014
2.5
2015
In the Outer Suburbs, where supply is up slightly, two-thirds of the space
remains in an average state of repair. Reconversion to housing stock is
generally too unprofitable for these assets. Some owners have elected to
undertake less extensive works, and the number of renovated properties
has risen by 8% over one year.
2016 FRENCH MARKET REPORT | 19
OFFICE SUPPLY
(months)
35
(%)
10
30
Nevertheless, the theoretical marketing period of the supply remained
relatively stable at 23 months. In fact, take-up over the past 3 years, used to
calculate this figure, has also declined, as the 2.3 million m² from 2012 is
no longer part of this average.
8
7.5
23
25
After gradually climbing since 2007, immediate supply posted its first
decline, with the Ile-de-France vacancy rate falling to 7.5% versus 7.9% at
the end of last year.
20
6
15
For new office space, supply rose incrementally while take-up declined. It
will now take 15 months, compared with 14 months for last year, to let
the supply of new and redeveloped office space. Despite everything, this
market is more fluid, since it still takes 27 months to move older buildings
in an average state of repair, notwithstanding the decline in immediatelyavailable second-hand properties.
4
10
5
1995
2000
2005
2
2015
2010
Vacancy rate (%)
Marketinf periods (months)
As usual, Parisian sectors have struck a balance, with a marketing period of
the supply at less than one and a half years. The market fluidity threshold
for the Paris CBD has become critical, with a vacancy rate of only 5%
accompanied by strong demand. Supply in Eastern Paris is also tight, with a
vacancy rate of just 2.3%, the lowest in the Ile-de-France. Beginning in 2017,
deliveries in the Paris Rive Gauche ZAC (mixed development zone) will start
to replenish supply.
Source: Nexity Conseil et Transaction
HAUTS-DE-SEINE:
3 YEARS TO MARKET
The region’s highest vacancy rate reached 14.4.% in the Inner Southern
Suburbs, specifically in Hauts-de-Seine South. This sector clearly lacks
sufficient demand to take up its excess supply over the short to mediumterm. Péri-Défense and Hauts-de-Seine North could also find themselves in
a similar position.
CURRENTLY AVAIBLE OFFICE SPACE
The Inner Suburbs offer outstanding opportunities, while the Outer Suburbs
have a lack of demand, which is at times significant. Periods to fully let
supply which extend past 3 years shows how certain markets are poorly
positioned for the long term.
MAP OF SUPPLY IN BUSINESS DISTRICTS
16%
Marketing periods in Ile-de-France = 23 months
14%
Péri-Défense
Hauts-de-Seine Nord
12%
10%
Inner Southern
Suburbs
La Défense
Rueil - Nanterre
Boulogne - Issy
Neuilly - Levallois
Inner Northern Suburbs
8%
Ile-de-France vacancy rate = 7.5 %
Outer Suburbs
6%
4%
Inner Eastern Suburbs
Paris CBD
Rest of Paris
Dynamic markets
Markets offering opportunities
Over-supplied markets
2%
Markets with insufficient demand
0%
0 months
10 months
20 months
30 months
40 months
50 months
60 months
70 months
Source: Nexity Conseil et Transaction
ct.nexity.fr
offices
15 MONTHS OF NEW SUPPLY IN STOCK
MARKETING PERIODS AND VACANCY
2016 FRENCH MARKET REPORT | 20
FUTURE SUPPLY
A REPLENISHED MARKET IN LA DÉFENSE
AND IN PARIS
NEW AND RESTRUCTURED FUTURE SUPPLY
>5,000 M² BY 2019
(MILLIONS OF M²)
With nearly 800,000 m² available immediately, the supply of new space
greater than 5,000 m² is more extensive than last year. The million m² barrier
will be surpassed once buildings in progress are added to the mix during
2016. With an average of 550,000 m² taken up over the past three years, the
market has a substantial surplus at the present time.
1.2
1.0
Average take-up of new
and restructured offices
> 5,000 m² over 3 years
0.8
0.6
Concerns about a lack of quality supply in certain established sectors has
given way to renewed investor optimism and confidence. They are enjoying
the benefits of a favourable environment and are less hesitant to launch
speculative transactions. A number of certain projects - three-quarters of them
new - have been identified for 2017 and 2018. This volume is almost equal
to the amount of immediate supply, and will replenish a market which has
shown a desire for new builds.
0.4
0.2
0
2016
2017
2018
2019
Uncertain
Again, the most significant projects are taking place in La Défense and
its surrounding areas, where over 300,000 m² are expected (of which
238,000 m² are certain), including 51,000 m² at the Alto tower and
45,000 m² at the Canopy building in Courbevoie. Despite record absorption in
2014, La Défense was able to replenish its high-quality building supply.
12 CERTAIN PROJECTS BY 2018
In Paris in addition to 17 active transactions in the market for 2016, a number
of significant projects will be delivered in 2017 and 2018. In the CBD, no less
than 11 buildings will be launched, including major redevelopments, led
by the newly-created Clichy-Batignolles district, where the first delivery will
take place in early 2017 with the 20,000 m² Season building. Outside of the
business district, the south of Paris has assembled a number of transactions,
led by the Paris Rive Gauche ZAC (mixed development zone). This new supply
will replenish a Parisian market with a relatively low vacancy rate and a clear
desire for high-quality buildings.
Immediate
Certain
Source: Nexity Conseil et Transaction
PARIS CBD:
METHODOLOGY:
To calculate the absorption capacity of new supply, we have determined
the level of immediate new supply and supply for delivery by 2019 for
each area and compared it with average take-up of new and restructured
offices in the last five years. In order to estimate new certain and
uncertain production, our commercial teams reviewed supply and office
projects potentially deliverable before the end of 2019, taking into
account the following criteria: the project’s progress (building permit,
urban planning, investor financing, etc.), the vacancy rate, the area’s
dynamism, competitor projects and the operator’s capacity for risktaking.
Area
Take-up of 1st-hand
space > 5,000 m²
from 2013 to 2015
Immediate and
certain supply
from 2016 to 2018
In the Inner Northern and Eastern Suburbs, immediate supply is just beginning
to be absorbed, and the launch of future projects remains uncertain. However,
nearly 100,000 m² with Universeine in Saint-Denis and the first tranche of City
Seine in Ivry-sur-Seine are expected in 2018, provided that potential demand
supports these large-scale projects. Supply remains uncertain in other sectors
of the Ile-de-France, with over 300,000 m² of potential office space between
2017 and 2019.
Breakdown of development
with permission granted
2016
2017
2018
Absorption capacity
of certain supply
Paris CBD
167,100 m²
239,900 m²
34%
43%
23%
17 months
Rest of Paris
317,700 m²
322,400 m²
39%
45%
16%
12 months
La Défense
187,000 m²
238,100 m²
62%
38%
0%
15 months
Inner Western Suburbs excl. La Défense
586,300 m²
944,800 m²
45%
39%
17%
19 months
Rest of Inner Suburbs
228,000 m²
420,300 m²
31%
16%
52%
22 months
Outer Suburbs
138,700 m²
190,400 m²
79%
14%
6%
16 months
2,355,900 m²
45%
34%
21%
17 months
Total Ile-de-France
1,624,800 m²
2016 FRENCH MARKET REPORT | 21
OUTLOOK FOR 2016
A more sustained economic recovery as from 2016 should benefit
employment, household consumption and corporate investment. Office
occupiers are likely to have better visibility over their business in the
short to medium term, following a lacklustre 2015.
Some tenants, whose financial position remains uncertain should
benefit from relatively low rents in 2016, enabling them to sign leases
to buildings that better suit their needs before rental values again start
to increase in the second half of the year. Because the market should
gradually shift in favour of lessors, other occupants may be less able to
renegotiate terms with their current landlords, leading to relocations.
Other innovative and agile companies will change their location due
to rising sales, an expanding workforce, or the desire to attract and/
or retain talent. Major occupiers will continue their consolidation, and
could occasionally leap at opportunities. However, only the public sector
appears to be planning large-scale movements, coordinated by France
Domaine, with the goal of streamlining occupancy and property costs.
Due to these favourable factors, annual take-up of office space in 2016
should reach 2.3 million m², following the strength recorded in 2015.
With 2 million m² expected by the end of 2017, there will be an
abundance of certain supply of new properties. In order to avoid
obsolescence in the eyes of potential tenants, second-hand office space which makes up three-quarters of supply - will continue to undergo more
frequent renovations. During 2016, 45 to 50% of these products will be
affected, versus scarcely one-third 10 years ago.
Beyond these figures, all businesses, regardless of their size and
activities, are currently adapting to new circumstances driven by the
booming sharing economy. The growing power of start-ups shows that
the Internet economy is becoming a driver of the future tertiary market
in France. Alongside pioneering small and medium businesses, certain
FORECAST FOR 2016:
TAKE-UP
2.3 MILLION M
2
major web companies are currently taking up substantial office space, at
times within pricey buildings in the heart of Paris. The profitability and
sustainability of the digital sector is well-established and leads to highly
promising forecasts. A profound transformation of the French economy
is under way.
The ever-present digital transformation extends far beyond web-based
stakeholders. All tenants must adapt their property to the growing
need for connectivity and flexibility. Many companies are preparing for
their digital transformation, creating a new source of demand for the
office market in the coming years. The impact of new working methods,
innovative services such as WiFi, integrated into connected, intelligent
buildings, teleworking and co-working spaces will gradually refashion the
appearance of the Ile-de-France market.
The influence of the Internet economy on office space in the Paris region
is far more visible than the Grand Paris project. Although transport lines
are slowly starting to take shape within a more reasonable time frame
from the tenants’ point of view, new extensions of service expected in
2020 involve relatively few business districts in the Ile-de-France, except
for the extension of metro lines 12 and 14 to meet junctions 13, 17 and
19 of the périphérique.
Congestion will be relieved in the Inner Western Suburbs when the RER E
connects La Défense to Gare Saint-Lazare, planned for 2022. Thus, it is still
too early to see any positive effects on these market sectors with excess
supply. Finally, in the Southern part of the Paris region, the tertiary market
will develop along future metro line 15. But the completion date is further
in the future (2025) and it is likely that these developments will be mixeduse business parks rather than pure office space, to work in collaboration
with major research centres and universities near Cachan-Villejuif-Val de
Bièvre and the Orly-Rungis economic hub.
NET ECONOMY
CO-WORKING
DIGITAL
TRANSPORTS
2020
ct.nexity.fr
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TENANTS AT THE HEIGHT OF DIGITAL TRANSFORMATION IN 2016/2017
2016 FRENCH MARKET REPORT | 22
MAP OF GRAND PARIS
Tram Express Nord
Épinay-sur-Seine
RER C
Poissy
RE
RER A
R
M1
RER C
E
M15
Bois-Colombes
Gabriel Péri
Mairie de St-Ouen - M 13
15
Nanterre La Boule
14
RER A
15
5
M
M1
3 T
Porte d’Asnières
La Défense
RER
E
Grande Arche
RER A, M 1
RER C, M 13
M
Pont Cardinet
M
Porte Maillot
Rueil - Suresnes
Mont-Valérien
16 17 Stad
14 15
M
Front Popul
Clichy - St-Ouen
12 M
RER C M
Béconles-Bruyères
T 3
Porte
M Porte de Clichy
1 T
Nanterre La Folie
E
M
To
Mantes-la-Jolie
Les Courtilles
St-Denis Pleyel
T 1
Les Grésillons RER D, M13
RER C
1
14 Saint-Lazare
12
11
14
4
Saint-Cloud
Pont de Sèvres
Versailles Chantiers
RER C
18
Viroflay Rive Droite
T 6
Satory
5
12
Maison-Blanche
Mairie de Montrouge
Issy - RER C
4 M
Clamart
M Verdun Sud
Châtillon - Montrouge
Kre
M 13
Bicê
Clamart
Bagneux
Place du Garde T 10
Ville
6
Arcueil - Cachan
Arag
Villejuif IGR
6
M14
Robert Wagner
M1
Hôpital Béclère
Che
Com
Saint-Quentin Est
T 10
Tram Express Sud
La Croix de Berny
8
M1
Antonypôle
Massy Opéra
CEA
Saint-Aubin
8
18
M1
Orsay - Gif
Palaiseau
Massy - Palaiseau
RER B, RER C
Tram Express Sud
To Évry
1
2016 FRENCH MARKET REPORT | 23
17 Le Mesnil-Amelot
Aéroport Charles de Gaulle T4
Aéroport Charles de Gaulle T2
offices
RER B
Triangle de Gonesse
M17
Parc des Expositions
RER B
Le Bourget Aéroport
RER B
7
Le Blanc Mesnil
M1
Pleyel
Sevran - Beaudottes
Aulnay
Sevran - Livry
6
M1
La Courneuve Six Routes
RER B
17
3 M16 - M
Noisy-le-Sec
T 3
Porte de la Chapelle
T 1
Mairie des Lilas
M
Liberté
11
Place Carnot Londeau
M
Domus
M
Clichy - Montfermeil
T 4
Bondy
M11
M
Villemomble
M
Rosny Bois-Perrier
Hôpital Intercommunal
La Boissière RER E
azare
M
M1
1
1
Rigollots
M
Château de Vincennes
St-Maur - Créteil
RER A, TVM
KremlinBicêtre
Vitry Centre
Neuilly Hôpitaux
Val-de-Fontenay
M1
RER A, RER E
1
11 16
15 Noisy - Champs
Nogent - Le-Perreux
RER E
RER A
5
Porte de Choisy
Villejuif Louis
Aragon - M 7
RER E
M1
14 Olympiades
T 9
M
M15
M
e
Chelles - Gournay
Neuilly Fauvettes
M16
M15
11
Montfermeil Hôpital
RER E, T 4
M
M
M16
M15
Le Bourget - RER B
1
Stade de France - RER B
Mairie d’Aubervilliers Drancy Bobigny - T 1
M15
Bobigny Pablo Picasso
Populaire
Gargan
M 5, T 1
M
Fort
d’Aubervilliers
M
7
Pont de Bondy
2 M
4 T
Aimé Césaire
T1
5
M1
15
Bry - Villiers - Champigny
RER E
Champigny Centre
Créteil l’Échat
M8
Le Vert de Maisons
Chevilly Trois
Communes
Les Ardoines
Porte de Thiais
Pont de Rungis
RER C
14
RER D
RER C
9 T
Orly Ville
18 Orly Aéroport
Grand Paris...
... by 2020
... by 2025
... by 2030
Sources : SGP, STIF (July 2015)
vry
ct.nexity.fr
2016 FRENCH MARKET REPORT | 25
LOGISTICS IN FRANCE
DECLINING OIL PRICES
BOOST THE LOGISTICS MARKET
AVERAGE PRICE OF BRENT ($ PER BARREL)
120
100
80
60
47
40
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015
Source: Ministère de l’Écologie, du Développement Durable et de l’Énergie
EUROPEAN HUBS OF 4 MAJOR EXPRESS TRANSPORTERS
LES HUB EUROPÉENS DES 4 PRINCIPAUX INTÉGRATEURS EXPRESS
UPS
TNT (Cologne)
DHL
(Leipzig)
(Liège)
FEDEX
(Paris)
E-COMMERCE TURNOVER IN FRANCE
(€BN)
80
70
60
50
Reducing the carbon footprint is a global priority. Europe has released
one-half of the budget to build the Seine-Nord Europe Canal to develop
river transport, which generates less pollution than road transport. By
2023-2024, this infrastructure will permit the passage of vessels of up
to 4.500 tonnes, compared with 750 tonnes today.
In contrast, development of air freight - marginal but environmentallyunfriendly - is also expected: AIR FRANCE – KLM - MARTINAIR CARGO
is increasing operations in the pharmaceutical/health sector and in
express delivery services; airline companies SAUDIA and EMIRATES
SKYCARGO hope to expand their freight services at several French
airports, especially Roissy but also at Lyon and Basel-Mulhouse;and
finally, the International Air Transport Association (IATA) plans to lower
door-to-door delivery times to 48 hours by 2020, aware that these times
have remained at 6 to 7 days for the past 40 years. At present, a large
proportion of air freight customers are express transporters, whose
European hubs are divided among several cities on the continent. In
France, FEDEX maintains its hub at Roissy.
THE STRONG FUTURE OF E-COMMERCE
The logistics market is continuing to transform to address the needs of
e-commerce, which in France is expected to post 10% higher growth
for 2015 than was projected at the start of the year. New forms of
collaborative urban delivery and related goals lie at the heart of the
market’s digital transformation.
Other indicators are positive over the short to medium term: the
business climate index recently improved to its highest level in
four years, heralding increased activity and a possible decline in
unemployment rates in the coming quarters. In particularly, INSEE
forecasts further improvement in manufacturing output to mid-2016,
with industrial companies becoming more agile when expanding their
business and securing supplies.
40
30
20
10
0
In practice, several facts have supported the market: household
purchasing power is on the rise and, above all, the price of diesel has
fallen below the symbolic mark of 1 euro per litre. Declining oil prices
are a boon to companies connected with the transport and logistics
sectors, even though new taxes will increase the cost of diesel at the
pump by several cents as from 2016. The French government intends to
move toward more balance taxation of petrol and diesel and, following
from the COP21 climate change conference in December 2015, plans to
implement a new carbon tax which could rise four-fold by 2030.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: FEVAD
logistics
At first glance, economic indicators seem relatively unfavourable for the
logistics market, as they did in 2014. France posted slower growth than
the euro zone as a whole, and unemployment rates remain above 10%.
2016 FRENCH MARKET REPORT | 26
LOGISTICS IN FRANCE
Average headline rents
Regions
€35-45 / m² / year excl. taxes and charges
Ile-de-France
€48-56 / m² / year excl. taxes and charges
LOGISTICS TAKE-UP IN FRANCE
(MILLIONS OF M²)
3
2.5
A RECORD YEAR FOR FRENCH LOGISTICS
PROPERTY
2
Against this background, logistics properties in France have performed
very well, with record take-up of some 3 million m² in 2015, up 28%
compared with 2014.
1.5
1
0.5
0
Finally, the new European Union Customs Code will take effect in 2016.
It introduces Authorised Economic Operator (AEO) status which indicates
that the recipient has proven that its supply chain is secure. It also
provides for reduced paperwork to facilitate imports and accelerate
the customs clearance process by limiting the time that goods are
held, which should benefit the cross-border logistics market and open
new opportunities. The French customs authority has launched its
"Dédouanez en France" (Clear Customs in France) plan to help French
logistics platforms gain international market share and encourage
industrial production in France.
2008 2009 2010 2011 2012 2013 2014 2015
5,000 to 20,000 m²
20,000 to 40,000 m²
> 40,000 m²
Source: Nexity Conseil et Transaction
2.9 MILLION M
28%
TAKE-UP:
2
LOGISTICS USERS IN FRANCE IN 2015
(M²)
5% 1%
20% 26%
24% 24%
Specialised distribution
Mass distribution
Logistics companies
Other end users (chargeurs)
Internet companies
Pharmaceutical distribution
Source: Nexity Conseil et Transaction
The trend toward warehouse consolidation continues to intensify. 19
transactions in excess of 40,000 m² were recorded, compared with only
12 in 2014. A growing number of warehouses are approaching - and
even exceeding - 100,000 m², such as GIFI in Bouches-du-Rhône with
103,000 m² and MAISONS DU MONDE with 96,000 m². Assets smaller
than 20,000 m² remained stable and seem to have settled into a
pattern of around 100 transactions per year.
Historically around 30-35%, the proportion of take-up by logistics
operators fell to 24%, i.e. 600,000 m², down 20% compared with 2014.
On the other hand, the proportion of Internet-related companies and
distributors rose sharply. The extraordinary growth of e-commerce
is impacting food and specialist distributors, which must adapt their
property holdings accordingly. Now more than ever, cutting delivery
times is the top objective. Accordingly, distributors have taken up more
than half of the m² let in 2015, compared with only 31% in 2014. At the
same time, take up by Internet-related companies such as AMAZON and
CDISCOUNT has more than doubled.
Despite low interest rates, only 20% of m² on the market involved
owner-occupier sales. Leases were still preferred in the logistics market,
especially since headline rents have changed little over time. They
generally fall between €35-45/m² in the regions, and rise to €56/m² in
the Ile-de-France. Tenants still wish to sign shorter, more flexible leases,
requiring investors to work more intensively on asset management in
the event of a tenant’s departure, so they can quickly re-let some or all
of the vacant warehouse.
ct.nexity.fr
2016 FRENCH MARKET REPORT | 27
LOGISTICS IN FRANCE
2015 LOGISTICS TRANSACTIONS
IN THE REGIONS
Regions
65%
35%
It should also be noted that the logistics property market is heavily
restricted by regulations, which are increasingly stringent. ICPE
standards on classified installations and environmental standards
strictly govern projects while allowing specialised investors to develop
products that meet the latest technical specifications as well as the
expectation of major occupiers, whether shippers or logistics operators.
Rhônes-Alpes
7%
4%
5%
5%
4%
5%
As a general rule, supply is growing scarce along this axis and in the
Rhone-Alpes, where all of the new supply was taken up from the start
of the year. From the north to the south of France, there are a number of
"semi-speculative" and turnkey projects ready to meet strong demand
for new logistics platforms. Occupiers also place greater reliance on
major European rail lines, roads, maritime links and river routes that
connect France with Spain, Italy, Belgium and Germany to better serve
their European customers.
Ile-de-France
28%
Nord Pas-de-Calais
Provence Alpes Côte d'Azur
Centre
8%
17%
17%
Picardie
Lorraine
With the rise of e-commerce and the desire to reduce B to C delivery
times, requirements are increasingly specific. The solution resides in
warehouse automation and robotisation, which can accelerate the
processes. Certain companies prefer to position themselves through
turnkey operations that they can shape in their image, even if it means
signing a long-term lease to reassure the investor. This trend toward
customisation will intensify throughout the year.
Bretagne
Pays de la Loire
Haute-Normandie
Others
Source: Nexity Conseil et Transaction
A PROPERTY MARKET UNDERGOING
GEOGRAPHIC AND TECHNICAL
TRANSFORMATION
Although the North-South axis remains the top logistics market in
France, it does not cover more than 75% of activity, compared with 78%
in 2014. Market share for the Ile-de-France rose to 35% this year. With
global access through ports at Le Havre and Saint-Nazaire, Pays de la
Loire and Normandy continue their development. In another example,
CARREFOUR decided to locate a 70,000 m² warehouse at Bourges, in
the Centre region. Meeting local demand sometimes plays a smaller
role, as suggested by the situation in the Aquitaine, which has not yet
broken into the logistics market despite dynamic growth in the Bordeaux
metropolitan area. Lastly, the Basel-Mulhouse airport has constructed
new facilities intended for freight. It will take time to rebalance French
air cargo traffic, 90% of which is dominated by Parisian airports which
The oldest warehouses are less able to meet the selection criteria used
by shippers and logistics operators. While renovations may be enough
to attract small to medium-sized transport and distribution firms, new
trends continue to emerge. Some building units are let under very shortterm leases for the occasional storage of surplus goods. At times ageing,
warehouses attract the interest of service companies, such as car hire
companies, which rely on collaborative consumption and the recent
‘Uberisation’ phenomenon to grow their business.
NORTH-SOUTH AXIS:
75% OF TRANSACTIONS
SELECTION OF LOGISTICS TRANSACTIONS IN 2015
City (department)
Surface area
Type of premises
User
Type of transaction
Bourges (18)
70,000 m²
Classe A logistics
CARREFOUR
Letting
Saint-Bonnet-les-Oules (42)
60,000 m²
Warehouse
EASYDIS (CDISCOUNT)
Owner-occupier sale
Pusignan (69)
59,300 m²
Classe A logistics
BUT INTERNATIONAL
Letting
Cholet (49)
57,000 m²
Classe A logistics
CARREFOUR
Letting
Arras (62)
50,000 m²
Classe A logistics
ORCHESTRA PRÉMAMAN
Letting
logistics
have also pursued ambitious investment programs. However, the Eastern
regions’ entry to the market affirms that the Lille/Paris/Lyon/Marseille
axis is not the only one that counts.
2016 FRENCH MARKET REPORT | 28
LOGISTICS IN FRANCE
LOGISTICS HEADLINE RENTS IN 2015 (€ / M² / YEAR EXCL. TAXES AND CHARGES)
Brussels,
Antwerp
LILLE
36-43
8
AMIENS
Frankfurt
LE HAVRE
40-44
ROUEN
METZ
PARIS IDF
CHÂLONS-ENCHAMPAGNE
48-56
2
RENNES
STRASBOURG
STRASBOURG
40-42
7
ORLÉANS
35-42
NANTES
DIJON
34-47
35-40
BESANÇON
POITIERS
LYON
35-45
CLERMONT-FERRAND
LIMOGES
North-South Axis
Turin, Milan
4
BORDEAUX
35-40
Other Markets
Genoa,
Rome
9
TOULOUSE
MONTPELLIER
40-42
MARSEILLE
5
1
3
6
NICE
41-43
Santander
PERPIGNAN
Saragossa,
Madrid
Barcelona,
Valencia
120 km
MAJOR LOGISTICS TRANSACTIONS IN THE LAST 5 YEARS
1 - MAISONS DU MONDE - 250,000 m² (Saint-Martin-de-Crau)
6 - MAISONS DU MONDE - 96,000 m² (Saint-Martin-de-Crau)
2 - CARREFOUR - 120,000 m² (Le Coudray-Montceaux)
7 - INTERMARCHÉ - 95,000 m² (Vert-Saint-Denis)
3 - CASTORAMA - 113,000 m² (Saint-Martin-de-Crau)
8 - AMAZON.FR - 90,000 m² (Lauwin Planque)
4 - SOCARA - 106,000 m² (Villette d’Anthon)
9 - CARREFOUR - 80,200 m² (Saint-Gilles)
5 - GIFI DISTRIBUTION - 103,000 m² (Miramas)
ct.nexity.fr
2016 FRENCH MARKET REPORT | 29
LIGHT INDUSTRIAL PREMISES IN THE ILE-DE-FRANCE REGION
Nexity Conseil et Transaction tracks the following light industrial premises = SME premises, workshops, storage premises (<5,000 m²) and high tech-laboratories.
Department
Nber
Change vs.
2014
Volume
Transactions in 2015
Immediate
supply
Nber
Volume
Change
vs.
2014
Average headline rental values
in € / m² / year excl. taxes and charges
SME premises
Storage premises
Paris
9
17,100 m²
17,100 m²
17
15,800 m²
€146
ND
Hauts-de-Seine
65
94,000 m²
80,900 m²
61
67,900 m²
€99
€77
Seine-Saint-Denis
157
281,900 m²
206,800 m²
139
168,700 m²
€89
€69
Val-de-Marne
103
179,100 m²
122,200 m²
59
81,100 m²
€94
€70
Seine-et-Marne
115
263,900 m²
180,200 m²
85
98,300 m²
€78
€47
Yvelines
162
292,300 m²
244,100 m²
71
89,700 m²
€74
€53
Essonne
154
345,800 m²
241,500 m²
100
117,400 m²
€79
€51
Val-d’Oise
194
430,200 m²
331,200 m²
141
159,400 m²
€75
€59
TOTAL IDF
959
1,904,300 m²
1,424 ,00 m²
673
798,300 m²
€87
€62
AN OUTSTANDING YEAR FOR TAKE-UP
TAKE-UP AND ONE YEAR SUPPLY
(MILLIONS OF M²)
After three consecutive years of decline, take-up enjoyed a turnaround
in 2015. Totalling more than 790,000 m², it rose 6% compared with the
average for the decade.
2.5
2
The Seine-Saint-Denis and Val-d’Oise departments remain core markets for
light industrial premises. These two areas comprise 40% of total take-up.
1.5
In addition, the market has been shifting toward the Outer Suburbs for some
time, even into the exurbs of the Ile-de-France. The Essonne has experienced
spectacular growth of 59% compared with 2014, following several major
transactions. For example, LECLERC DRIVE leased 3,475 m² in Lisses.
Conversely, the Val-de-Marne, which is closer to the capital, saw take-up drop
by 27%.
1
0.5
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Take-up
One year supply
Source: Nexity Conseil et Transaction
SEINE-SAINT-DENIS + VAL-D’OISE
=
40% OF TAKE-UP
BREAKDOWN OF TRANSACTIONS IN 2015 (M²)
Owner-occupier sales
38%
Lettings
17%
62%
29%
Source: Nexity Conseil et Transaction
Take-up in Paris is higher than in previous years, even though it remains
anecdotal. This increase mainly results from the SNCF acquisition of
6,470 m² in the 13th arrondissement. In addition, VOITURES NOIRES signed a
lease for 2,500 m² in the 17th arrondissement.
Due to attractive interest rates, owner-occupier sales have regained
momentum, representing nearly 40% of take-up in 2015, compared with
less than 30% in 2014.
As a result of this strong take-up, supply fell by 11% compared with 2014
and is equal to the average of the past 10 years – i.e., approximately
1.9 million m². It is no surprise that the departments with the greatest supply
are Seine-Saint-Denis and Val-d’Oise in the north, and Essonne in the south.
The quality of supply has not improved, with more than 70% in an average
state of repair. However, active letting has recently encouraged development.
Several new products were delivered during the fourth quarter of 2015, and
will certainly arouse interest among tenants.
Rental values have generally remained steady across the various geographic
sectors. However, Saint-Quentin-en-Yvelines and Roissy Paris Nord 2 have
suffered falling rents, since more storage facilities are leased in that area.
Nearly 50% of rents fall between €60 and €100/m², with higher values for
new properties. High-tech facilities and laboratories also achieve higher rental
values, typically between €100 and €140/m².
light industrial
One year supply
2016 FRENCH MARKET REPORT | 30
TERMINOLOGY
Average rent (€/m²/year excluding taxes and charges):
Average rent is obtained by dividing the total rent per m² by the number of
transactions in the sample. These are asking, headline, or transaction rents, not
including incentives (rent free periods, paying for fit-out works, etc.) They do not
include parking spaces and associated premises.
CBD:
Central Business District
CCI:
Construction Cost Index (Indice du Coût de la Construction - ICC)
Certain supply / Uncertain supply (m²):
Certain supply includes immediate supply, certain departures, supply under
construction and construction projects to be launched speculatively. Uncertain
supply includes construction projects whose launch is dependent on pre-letting
or sale, as well as departure plans not yet confirmed or dependent on external
factors (re-letting, search for a new site, etc.).
Core market:
Range of headline rents applied to approximately 80% of transactions during the
period. However, when references are incomplete, these rents are determined
to the best of Keops professionals’ knowledge in order to express a consensual
market view.
Corporate real estate:
Generic term referring to offices, light industrial premises, logistics buildings
and retail premises. However, unless otherwise indicated, land intended for
construction of this type of property and hotels are excluded from our definition
of corporate real estate.
HQE:
High Environmental Quality (Haute Qualité Environnementale)
IGH:
High-rise building (Immeuble de Grande Hauteur)
ILAT:
Index of tertiary activity rents
(Indice des Loyers des Activités Tertiaires)
ILC:
Index of commercial rents
(Indice des Loyers Commerciaux)
Immediate supply / One year supply (m²):
Immediate supply includes all immediately available properties, free of
occupants and being marketed. One year supply represents the sum of immediate
supply, plus all deliveries and departures planned in the next 12 months. These
may result from leases coming to an end or the search for new tenants.
Incentives:
Discounts given by owners to tenants, generally through rent-free periods,
contributions to renovation works or escalating rents.
Light industrial premises / SME premises:
Assembly / production premises, often located in business parks, generally with
one or more same level entrances, of a height of at least 3.50m and support
offices.
Data sources used in this publication:
Logistics:
A complex with a surface area equal to at least 5,000 m², mainly used for storing
goods and managing flows. Buildings are included which are accessed by delivery
bays, with turning space for heavy goods vehicles, and headroom of at least 7m.
"Grade A" logistics refers to the most qualitative buildings, which are new and/or
complying with the latest technical requirements.
Lower rents (€/m²/year):
Headline rents for lower quality buildings in secondary locations and/or poor
state of repair.
Marketing period (months):
This refers to the time taken to let up immediate supply, at a given moment in
time, at the current rate of transactions. For the purposes of this study, the rate of
transaction is smoothed over the last three years. It is calculated as follows:
[Immediate supply / (take-up over three years / 3)] x 12.
Offices:
Refer to plots or buildings at least 70% of the surface area of which is used
exclusively as offices.
Specifically not considered are support offices attached to light industrial
premises or a warehouse.
Prime rents (€/m²/year):
Top headline rents for high-quality buildings, usually new or restructured, and
offering best-in-class space and services in the most praised business districts.
Storage premises (or facilities):
Building used mainly for storage with a surface area of less than 5,000 m².
Take-up (m²):
Total surface areas of transactions recorded over a given period. It includes rental
transactions, owner-occupier sales and projects completed by users for their own
occupation. It includes new company moves and extensions. The date of the
signing of the lease or the undertaking to sell is taken into account, rather than
the date of the user’s physical move or delivery of the building.
Typology of buildings (in particular for offices):
The Research Department at Nexity Conseil et Transaction identifies four
categories of office buildings:
- new buildings,
- restructured buildings (major renovations requiring a building permit),
which both make up first-hand buildings,
- refurbished buildings (subject to more minor works not requiring a building
permit),
- and second-hand buildings in an average state of repair.
Vacancy rate (as a % of existing real estate stock):
Ratio between immediate supply and all existing stock.
Yield (%):
Ratio between rent net of all charges and the sale price including acquisition
costs, duties and fees.
ZAC:
Urban development zone (Zone d’Aménagement Concerté)
NEXTY CONSEIL ET TRANSACTION databases: Office supply (Logikeops©) and transactions recorded (Osiris©)
AFILOG: French Association for Supply Chain and Logistics Real Estate
EPADESA: the public development body for La Défense Seine Arche business district.
ORIE: Regional corporate real estate observatory, which produces annual statistics on office stock in the Ile-de-France region.
Economic information: BANQUE DE FRANCE, ECB, EUROSTAT, EXPERIAN, FEVAD, IMF, INSEE, OECD, OFCE.
Nexity Conseil et Transaction provides a full range of
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for occupants and owners looking to rent, sell, invest
or optimise their property assets: offices - industrial
- warehouses - logistics - retail - land. Regardless of
your commercial real estate needs, you’ll enjoy the
benefits of our expertise and services to ensure the
success of your projects, both in France and abroad.
Nexity Conseil et Transaction has 7 locations in
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Offices
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Regions
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CONTACTS :
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INVESTMENT / CAPITAL MARKETS
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OLIVIER DE MOLLIENS
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KEY ACCOUNTS MANAGEMENT
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INDUSTRIAL AND LOGISTICS
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REGIONS
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NEXITY CONSEIL ET TRANSACTION – January 2016 – Design: Clio KEPENOS - Non-binding document
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