REAL ESTATE RESEARCH

European Office Forecast 2015-2017 November 14, 2016

In Western Europe, 12 out of 13 surveyed markets are anticipating some rental growth over the next 3 years, with 10 of these likely to see rises higher than the 10-year average.

The office market in the Greater Paris Region 3rd quarter 2016 - Good market activity continues November 14, 2016

Since the beginning of the year, immediate office supply in Paris has fallen by 100,000 sq m leaving the average vacancy rate in the capital at 3.6% by the end of September. With 592,000 sq m of availability, supply in Paris has not been this low for 8 years!

The office market in the Greater Paris Region - Q3 2015 October 27, 2015

Prime yields in the Paris CBD hardened further in Q3 to reach a historically low level of 3.25-3.75%, lower than the record in 2007 (3.50-4.50%) and below the level of London West End (3.50-4.00%). Real estate remains a sought after investment product. It offers, despite current low yields, a positive gap of more than 230 basis points compared to long term interest rates (OAT 10 years 0.89% at end September). This is in sharp contrast to the negative spread in 2007 of 110 basis points with an OAT of 4.60%. If US interest rates are set to slightly increase before year end, rates in the Euro zone will probably remain stable in the coming months but in any case the risk premium is suf cient today to absorb a slight change.

Germany Office Market Outlook - Q1 2015 March 31, 2015

While growth has slowed, relative economic stability has supported a strong level of occupier activity around the country, although trends have varied between the major cities.

The office market in the Greater Paris Region - Q4 2014 December 31, 2014

Following three years in which the investment market hovered around 12 billion euros, 2014 was an excellent year for the Greater Paris Region market, which surpassed the 17 billion euro mark. It was the best year recorded since the 2007 peak, which exceeded 20 billion euros. While the London market was down year-on-year – recording a 9% fall in investment volumes – the Greater Paris Region market recorded an increase of 46% in one year.

Property Times Paris CBD Q2 2014 August 25, 2014

Take-up in the Paris CBD stood at almost 191,000 sq m for H1 2014, representing a 32% year-on-year increase.
All space segments benefited from the upturn in activity although the major space segment recorded the most significant improvement with a take-up of 50,000 sq m, equivalent to the full-year figure for 2013.

Investments in Commercial Real Estate in France - Outstanding Performance in H1 2014 August 19, 2014

Investment in commercial real estate over H1 2014 came in at € 12.3bn. This was a very handsome performance, up 51% over one year and much higher than the average of the last 10 years (€ 8.3bn).
- BNP Real Estate

The office market in the Greater Paris Region - A year of mega transactions! August 18, 2014

Major transactions have made their presence felt on the Greater Paris region market since the start of the year and 2014 is likely to record a strong performance as a result of these large deals. The Greater Paris Region saw almost €8.2 billion in commitments in the first six months of the year, up 85% compared with the first half of 2013. Almost 80% of investment volumes relate to transactions for over €100 million, of which there have already been 19, up from 11 in the same period the previous year.

Strong momentum on the German investment market July 31, 2014

The German investment market continues to run smoothly with a good tailwind behind it as it enters the second half of the year. In the period from April to June, a transaction volume of €6.9 billion was registered on the German investment market for commercially used property. Thus the transaction volume for the first half of the year amounted to a total of €16.9 billion, which is around 29% higher than in the corresponding period of the previous year.

France Office Snapshot - Q1 2014 May 23, 2014

With modest improvement in business investment and a 24% year-on-year increase in take-up in Q1, the office market should benefit from steady growth in H1 2014. The ‘wait-and-see’ approach observed last year is dissolving as occupiers seek to benefit from incentives offered by landlords and the influx of redeveloped quality supply in Paris, particularly the CBD.

Greater Paris Region - Q1 2014 May 23, 2014

Following a difficult start, the Greater Paris Region posted an upturn and ended Q1 2014 with a take-up volume of 506,900 sq m up by 19% year-on-year. Boosted by a come-back of transactions for large sized buildings, 2014 began on a far more positive note than Q1 2013.

Investment in France Q3 2013 - Healthy Trend For The Investment Market In France November 14, 2013

• With € 4.9bn invested in Q3 2013, investment in commercial real estate in France confirmed its healthy trend, up +41% vs. the same period in 2012. The total for the first nine months of 2013 stands at € 12.9bn (+27% over one year), i.e. higher than the € 12bn average for the last 10 years.
• In terms of asset type, offices are still investors’ preferred assets, attracting 64% of investment, in keeping with the long-term average. Service premises performed well, representing 19% of the total in 2013.

Office Investment Market Germany Q3 2013 November 14, 2013

Further Increase In Office Investments
• Investment in office buildings in the first three quarters of 2013 totalled just over 7.66 bn €. That is all of 22 % higher than the already very good prior-year result.

Strong Interest By Range Of Investors
• The investor structure remains very varied, which reflects a very broad and, in particular, stable basis of demand. Overall, five different groups of buyers achieved double-digit percentage proportions of the aggregate volume.

Investment in France Q2 2013

---------------------------------------------------- Investment in commercial real estate in France has been particularly robust since the beginning of 2013. Indeed, although the amount of investment in France slowed in Q2 (€ 3.9bn, down 11% over one year), the outstanding figure at the beginning of the year meant that the overall amount of investment in H1 2013 was up 21% vs. the same period in 2012 to € 8.1bn. Île-de-France (Greater Paris Region) accounted for the lion’s share of acquisitions in France i.e. 75% in H1 2013. Most investors still focus on secured operations of over € 100m, such as the acquisition by an insurer of the 42 avenue Friedland in Paris 08 (10,500 m2). In terms of asset types, although offices are still in the majority, attracting 54% of investment in H1 2013 in France, other asset classes such as retail and services remain particularly active, representing respectively 17% and 21% of investment over the period.

Investment Market Germany - Q2 2013

---------------------------------------------------- Investment Markets Remain Very Dynamic - With a total of just over 6 bn €, the second quarter of 2013 was also very strong and picked up smoothly from the exceptional first-quarter performance (7 bn €). So investment markets have proved to be completely unimpressed by the merely moderate development of the economy as a whole in the first half of the year. For investors, Germany continues to offer an extremely attractive environment unparalleled anywhere else in Europe Big Six Locations Post Great Turnover - The volume of investment in the Big Six locations was 60 % high- er than in the same period last year, reaching a total of more than 7.45 bn €. On a long-term comparison, this was the second- best result ever registered in the first six months of the year. The ranking so far is headed by Frankfurt, with over 1.7 bn € (+95 %).

Germany Investment Quarterly MarketView

---------------------------------------------------- High investment dynamics: commercial transaction volume H1 2013 with €12.6bn significantly above H1 2012 result (+34%) Very high demand for office properties, retail properties again second most sought-after asset class Asset deals dominate investment activities in the first half of the year – at the same time considerably more portfolio deals year-on-year Office yields are further declining due to the unabated high demand for core products in Germany’s Top 5 locations Investors increasingly prepared to take risks

Office market in the Greater Paris Region - Q1 2013

---------------------------------------------------- - Prime rent in the CBD fell again in Q1 and is now €760 per sq m. - 5 transactions exceeding €100 million registered in Q1 2013. - Since 2009, immediately available supply has hardly changed and remains capped at close to 3.6 million sq m. - Over €2 billion invested since the start of the year – a rise of 43% in one year. - The key prime yield, in the Central Business District, remained stable in a range between 4.50 and 5.00%.