Total commercial real estate investments in the Paris Ile-de-France region fell 8% last year to €18.5bn from 2016, though demand for office space was up by the same amount at just over 2.6m sqm, the Immostat broker group reported.
In its year end report, the group - comprising the four largest brokers BNP Paribas Real Estate, CBRE, Cushman & Wakefield and JLL - said the immediate supply of office space in the Paris region at the end of December was 4% down over the year at 3.39m. Investment picked up in the fourth quarter however, surging by 18%yy to €8.9bn. The average price of offices purchased in Ile-de-France in 4Q17, combining all types, amounted to €6,390 sqm (including fees), which represents an increase of 5% over the year.
In terms of leasing, some 853,900 sqm of space was let by brokers in 4Q17, up by 21% from 4Q16. On the basis of the transactions that took place during the last quarter of 2017, the average rent for offices rose by 3%yy to €357 sqm p.a. for existing space, and by 1% to €370 for new or restructured properties.
In warehouse properties larger than 5,000 sqm, total space demand in Ile-de-France, including the southern part of the Oise region, nearly doubled to 1.756m sqm in fourth quarter, no less than a jump of 94%yy, Immostat said. Nationwide, demand for logistics property of over 10,000 sqm in size reached 3.39m sqm, with 1.82m sqm in the regions outside Paris, and 1.57m in Ile-de-France. Compared to 2016, this result at the national level represents an increase of 3%.