EN | FR
Real estate office market: 2007 will be a great year
10 Jul, 2007, Paris
With a number of deals closed 30% higher than in the first half of 2006, the buoyancy of the market in the first six months of 2007 announces an excellent year to come for the commercial real estate business in Paris.
Thierry Juteau, head of Cushman & Wakefield explains: “ When compared to the figures registered in the first half of 2005, the performances of the market in the first half of 2006 are even more encouraging, both in terms of volume (+38%) and in terms of number of deals closed (+46%)”.
The Office Department in Cushman & Wakefield, the real estate services firm, reaches the following conclusions:
1- While the total take-up registered in the first half of 2006 amounted to 1,407,488 sq.m., it decreased by 7% in the first half of 2007 with a total take-up of 1,305,130 sq.m. This is probably due to a wait-and-see attitude before the presidential and the general elections.
2- Deals above 4,000 sq.m. only total 489,941 sq.m. in the first half of 2007, a figure 33% lower than in the first half of 2006. The decrease of the volumes shows that “mega” deals (those above 20,000 sq.m.) were significantly fewer in 2007.
3- The volume of deals closed for offices below 4,000 sq.m. totals 815,000 sq.m. this year i.e. more than 62% of total take-up.
4- Deals above 4,000 sq.m. account for less than 38% of total take-up compared to 52% in the first half of 2006.
5- The number of deals closed for office spaces below 4,000 sq.m. has increased by 32% with a total of 1,797 deals closed in the first half of 2007 compared to 1,360 over the same period in 2006.
6- The number of deals above 4,000 sq.m. remains relatively steady: 54 deals were closed in the first half of 2007 and 56 in the first half of 2006.
7- The share of new buildings in the total take-up only accounts for 25% this year compared to 39% in the first half of 2006.
8- The total supply available in less than 6 months is slightly decreasing with 3,001,683 sq.m. in the first half of 2007, a 9% decrease compared to the first half of 2006.
“These figures are announcing excellent performances for 2007 for all sizes of office space” concludes Thierry Juteau.
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