PARIS-Office leasing in the Paris region is likely to flatten out next year at around 23.7 million square feet, after rising from 19.4 million square feet in 2009, Jones Lang LaSalle says in a new report.
"The economic and financial instability gripping Europe at the end of this year and forecasts of slower growth will weigh on user demand," JLL said. But demand is likely to accelerate again in 2012, particularly as firms seek more cost savings or find more environmentally friendly premises.
Meanwhile, investment in Ile-de-France commercial real estate is likely to grow to $10.5 billion to $13.1 billion next year from $8 billion to $9.2 billion in 2010. This will take investment back to the normal levels seen between 2000 and 2004, JLL said.
Competition for core assets has driven yields down around 100 basis points in the Paris Golden Triangle to 4.75%-5.25% and by around 75 basis points in La D
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