Outlook for radiant to support companies

on April 10, 2018 – AP REDACTION – real-Estate – Market

© A. P.

Cushman & Wakefield, the international council real estate firm, published its study on major trends in the Ile-de-France in 2017, and provides prospects for 2018.

In 2017, the analysts of Cushman & Wakefield will hold the record number of transactions on the segment surfaces over 5, 000m2, with 88 signatures for a total of 1.1 million square meters, or 43 % of the total volume.
As the precise Magali Marton, director of the studies in France of the company board, ” on performance of large transactions with a growth of 27% in volume in one year – compared to +8 % for the market as a whole – is the sign of a profound change of paradigm. “For her,” the real estate, for a very long time associated to the single concept of cost, is today considered as a powerful vector in the transformation of organizational models of business.”

The year 2018 is expected to enroll in this good dynamic in the case of large transactions on the market in île-de-france, with a projection close to a million square meters.

Also appear in the observation that the appetite of companies for new surfaces (nearly 75% of the surfaces placed in new surfaces or restructured) and the scarcity of immediate supply in this size and this quality of the surface pushes users to position themselves upstream of the delivery of the buildings.

The rate of pre-marketing of upper surfaces to
5 000 m2 amounted to 87 %, again a record, well above the average ten-year (64 %). According to Cushman & Wakefield , ” the concomitance of these two phenomena just dry out the provision of immediate, short-term, with a particular acuity in Paris, where availability remains low – a score of buildings for a little less than 280 000 m2 for the next 12 months – while the market has consumed nearly 350 000 m2 in the last year “.

A strong attachment to Paris intra-muros

According to a study by Cushman & Wakefield, ” the capital is positioning itself as the preferred destination for companies in relation to their large-scale movements (32 signatures for a total of 380 000 m2), for the 2nd year in a row “. This is, again, a historical record with in 2017, a larger market share to the CBD (central business District) and its natural extension centre-west. The renewal of the offer has enabled the growth in the volume of transactions, in particular on jigs in excess of 20 000 m2. The market dynamics is also much more effective for the growing west (331 200 m2 treated) and the first ring (228 900 m2), both of which retain their users and attract new ones.

According to Cushman & Wakefield, the half of the taken lease of large template is signed in 2017, with rental values ranging between 350 and 530 € /m2/year with a median rent around 460 euros/m2/year, unchanged from one year to the other. In the CBD, the values top or near 800 euros/m2/year and could increase further in the course of the year 2018.

Offices “ultra class”

According to Nicolas Coutant, director of the centre large accounts, ” The positioning is very marked users on desktops “ultra-class”, with a centrality strong and of an urban environment rich and varied has just hit a relative weakness of the stock that can meet those criteria. So all the ingredients are gathered to see the values premium increase in the year 2018, with Paris CBD in the vanguard of this trend. The ongoing negotiations on the business district of paris show already values close to 840 € /m2/year, fuelling expectations is even more challenging for the buildings scheduled for delivery in 2019 and beyond.”

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