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 illi tad 17.2 m on ds H amb on Lon B erlin 16 sq.m companies looking for an establishment. s R an q.m illi Source: Agence Régionale de Développement de la region Ile-de-France, 2007 o .6 n sq.m France offers diverse products at accessible m hur 16.3 m illion sq.m s els 12 m eR prices. r us n illi R hi B illi on s o n sq. ine 14 millio q.m q.m n m Ile-de-France (Paris Region) is the leading R hineM a s ch uni 17.8 Paris Region M m European business real estate center, with an illi 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 n 4.3 million yo L sq .m 11 million an sq . According to Immostat, the availability m l Mi of offices in Paris Region was estimated at 2.5 million sq. m as of September 30, id 13. 6 mil dr li o lone 5 milli 2007. ce n Ma sq. on B ar s m q.m 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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