Despite the on-going health crisis, Brexit has boosted the office market in Paris Region. At the same time, the market has evolved in response to new work organizations and environmental standards.
The agreement on financial services expected at the end of March will not facilitate access to the common market for companies that remain in London. Those wishing to trade with the European Union continue to plan their relocation, which will allow Paris Region office market to benefit from the impact of Brexit.
Of the 570 relocations recorded since 2016, around 100 have been to Paris Region, bringing an estimated 3000 to 3500 jobs. In 2020, the Region attracted 18 of the 60 relocation projects in Europe. Paris Central Business District (CBD) and La Défense are the preferred areas for finance (76% of relocations to Paris Region), insurance (9%) and the legal sector (5%). For instance, JP Morgan has acquired 6,000 sq. m near Place Vendôme, and Golden Sachs has leased 6,000 sq. m at 83 Avenue Marceau. At a time when transactions are relatively rare, these two major deals demonstrate the attractiveness of Paris Region for companies and their confidence in its market.
Supply: Increased and Renewed
The vacancy rate, from 1.5% in 2019 to just over 4% in early 2021, has improved the fluidity of the CBD market. This fluidity is reinforced by the initiatives of regional authorities encouraging office developments that are better suited to current challenges. These mixed-use developments, surrounded by local services, are adaptable, modular and committed to ecological transition, while guaranteeing better health and safety.
The French way of life is also a determining factor. Not only is Paris Region a centre of economic power offering many professional opportunities, it is also the capital of good living and well-being, offering - at affordable prices - culture, architectural excellence, access to history, parks and gardens, gastronomy, education, health and infrastructure. Paris La Défense is becoming greener and seeing more events organized in public spaces to better respond to post-crisis changes in people's work-home lifestyles. With new completions in 2020 and 2021, high quality, sustainable "vertical campuses" are available at competitive rates:
World-class buildings with strict environmental certification and low-energy office towers
Modular and flexible platforms with a range of services adapted to new uses
Outdoor spaces, sometimes high up, with garden terraces, patios and loggias, all accessible to staff
Efficient solutions for air quality, heating, cooling and renewable energy production
Innovative mixed-use projects, new housing solutions and mixed-use towers where flats, offices, coworking spaces, services and shops are located under the same roof
Public services on the ground floor: restaurants, Michelin star corners, concierge services, etc.
Key developments illustrate these new opportunities: Trinity and Alto completed in 2020, Landscape nearing completion and in the future Hekla, Altiplano, The Link and Aurore.
Office towers Landcape, Trinity and Alto ©PLD leblueduck Florence Delaby