According to a Colliers study published this week, the slowdown in the office market in the Paris Region has resulted in a further increase in immediate supply, from 4.3 million sqm at the end of 2022 to 4.4 million sqm at the end of the first quarter of 2023, representing a vacancy rate of 7.9 %. For the Board, the increase in immediate supply concerns both first-hand space (1.3 million sqm) and second-hand space (3.1 million sqm).
The dichotomy of the Parisian market is even more marked today, with on the one hand a tense Parisian market in terms of supply (3.5 % vacancy rate on average for the capital and 2.4 % in the CBD), and on the other La Défense (15.4 %) and certain peripheral markets such as the peri-Défense or the northern suburbs, which are flirting with a 20 % vacancy rate. Note the intermediate position - around 9 % - of the southern loop, Neuilly-Levallois, with an immediate three-month decline in stock, and the eastern suburbs, which have gone from 112,000 sqm of vacant space at the end of 2022 to 216,000 sqm today.
There are currently just over 1.3 million sqm of first-hand office space (new or restructured) vacant in Paris Region. This supply is mainly concentrated in the inner suburbs with 553,000 sqm of vacant space, including 321,000 sqm in the northern sector. This is followed by La Défense (243,000 sqm) and the Western Crescent (223,000 sqm including 170,000 sqm for the peri-Défense micro-market alone).
In contrast to these large volumes, again according to Colliers, the Paris market remains clearly undersupplied for this quality of space with barely 126,000 sqm vacant to date, of which only 18,000 sqm is in the highly prized CBD.
This first-hand supply should continue to increase in the coming quarters, given the volume of office space under construction (477,100 sqm) and the weakness of first-hand office consumption in the first quarter of 2023 (under 100,000 sqm).
