A study of rental values in office buildings close to stations on Paris’s RER light rail sytem shows opportunities for investors and users, plus those that might be expected as the Grand Paris network is built out, says adviser Cushman & Wakefield.
The C&W map of office rents calculated by proximity to all 249 individual RER stations criss-crossing the Paris Ile-de-France capital region indicates that the average is currently at €220 per sqm p.a. – considerably lower than the €350 it estimated in an earlier study for the Paris metro network of 302 stations. But the range on the various RER lines varies widely, between €90 and €590 per sqm. “Just under 40% of the 249 RER stations analysed have a rental value lower than €250 sqm p.a., while just over 10% show rents that exceed €350,” the study says.
Magali Marton, C&W director of research, said the analysis makes even more sense as work progresses on first sections of the Grand Paris Express deliverable in 2019-2022. It specifies some elements for understanding the immediate environment of future stations and tertiary areas. “From €90 to €590 with an average of €220, the rental values of buildings close to RER stations offer real opportunities for both investors and users,” Marton said in a release. “However, there remains the question of the urban integration of these new buildings – a criterion that is gaining momentum in the choice of location for firms that see in their real estate a lever of performance of their human capital.”
Based on the present RER network, the C&W study shows that line C displays the highest rental value with office space close to the station at Musée d’Orsay commanding a median €590 per sqm p.a. This compares with the lowest, Dourdan in the extreme southwest at the end of the line C, at €90. On average, the RER line C shows the highest rentals, at €250, while the north-south D line – reaching the farthest outside the Paris region both north and south – is on average the cheapest at €200. Offices closes to stations on line A, the busiest in Ile-de-France but also in Europe, show an average rental value of €215 per sqm p.a.