real estate for business by rickman3

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									                                         Business real estate market
                                         Considered the most dynamic market in Europe, the business real estate market in France
                                         has broken the record for transactions volume (2.8 million  sq. m of office space distributed 
                                         in 2006 and 2.6 million sq. m in 2007) and investments totaling € 28.5 billion in 2007. Some 
                                         76% of this investment volume is office space, 11% is linked to logistic and industrial sector 
                                         real estate and 13% is related to trade real estate. Therefore, the French market is attractive to 
                                         international investors, who represent 65% of building purchasers in France (which includes 
                                         28% of North American funds – the leading investor in this market).

                                         The  recent  trend  is  to  reduce  surface  costs  and  to  develop  the  “high  environmental  quality” 
                                         approach.

                                         France: A low-cost, diversified and
                                         high quality real estate offering
                                         France has significant assets in business
                                                                                                                                                                       n 42.5 milli
                                                                                                                                                                     do                                                                                              rg   13.7 m
                                         real estate, which make it attractive for                                                                                                                                                                                ou
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                                                                                                                                                                                                                      tad 17.2 m




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                                                                                                                                                                                                                                                                                        sq.m
                                         companies looking for an establishment. 




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                                                                                                                                                                                                                                                                                                                              Source: Agence Régionale de Développement de la region Ile-de-France, 2007
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                                                                                                                                                                                                                                                n sq.m
                                         France offers diverse products at accessible 




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                                                                                                                                                                                                                                                                                                                illion sq.m
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                                         prices.                                                                                                                                                   r us




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                                                                                                                                                                                                                                                                     14 millio




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                                         Ile-de-France (Paris Region) is the leading 




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                                                                                                                                                                                                                                                                             uni 17.8
                                                                                                                                                                               Paris Region




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                                         European business real estate center, with an 




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                                                                                                                                                                                                                                                                                                    on sq.m
                                         office park of 49 million sq. m, an industrial                                                                                        49 million sq.m
                                         park of 30 million sq. m and a warehouse 
                                         park of 20 million sq. m. 
Real Estate Benchmark




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                                                                                                                                                                                                                                     11   million
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                                         According  to  Immostat,  the  availability                                                                                                                                                                  m
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                                         of  offices  in  Paris  Region  was  estimated 
                                         at 2.5 million sq. m as of September 30, 
                                                                                                                                  id   13. 6 mil
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                                                                                                                                                                       lone 5 milli
                                         2007.                                                                                                                       ce
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                                                                                          Sources: Estimations from ORIE, Jones Lang LaSalle, data handled by ARD, IAURIF – London: within the M25 – January 2007
                                                                                                                                       The leading European business real estate center
                            2008_03




                                                                             Average prime rents (in euro/sq. m/year)
                                     1                                                       Q1 2007
I n v e s t i n Fr a n c e A g e n c y




                                         Data source: Atisreal International Research – Office market 2007
                                                                            Business real estate market

                                                                            Maximun rents in French cities
                                                                            (in € sq. m/year before tax)




                                                                                                                                                      Focus: Paris Region
                                                                                                                                                      office space rent
                                                                                                                                                      Central Business District= 
                                                                                                                                                      € 633/sq. m/year

                                                                                                                                                      Paris/la Défense =  
                                                                                                                                                      € 500/sq. m/year

                                                                                                                                                      South-West Area =  
                                                                                                                                                      € 475/sq. m/yr for new and 
                                                                                                                                                      € 275 for old

                                                                                                                                                      Northern Paris/Saint-Denis = 
                                         Data source: Atisreal, Les Echos




                                                                                                                                                      € 275 for new and less than 
                                                                                                                                                      € 190/sq. m/year for old

                                                                                                                                                      The national average rent price 
                                                                                                                                                      of office space in France is € 153 
                                                                                                                                                      per square meter/year.
Real Estate Benchmark




                                                                            Occupational costs of offices in France
                                                                            A workstation costs on average € 10,000/sq. m/year in France. It ranges from € 15,000 for a prestigious 
                                                                            location in Paris’business quarters to € 4,700 for space in French regions.

                                                                            The rent is the main part of those costs (58%), then come building services (21%) and workers’services (16%) 
                                                                            like reception, telephony, transport, etc.
                            2008_03




                                                                            France: The best prices for logistic sites in Western Europe
                                                                            Logistics represent 11% of the business real estate transactions in 2006, +4% of the previous year. In 2007, 
                                                                            logistics transactions represented nearly 2.7 million sq. m, against 2.4 million in 2006.
                                     2
                                                                            The rental price of warehouses in France remains the least expensive in Europe, between € 44 and € 55 per
                                                                            square meter/year for the best sites. France offers the most attractive prices in Europe, compared to € 200
                                                                            in London, € 105 in Barcelona and Amsterdam, € 80 in Munich, € 70 in Frankfurt and € 60 in Milan.
I n v e s t i n Fr a n c e A g e n c y




                                                                            Data Source : Les Echos « Special SIMI », CB Richard Ellis, Atisreal.

								
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