While prime rents are still holding up, rental values for secondary office properties in the Ile-de-France region of France have fallen by up to 10% over the past 12 months, a new research report issued by property services firm DTZ shows. Jean-Luc Chalard, managing director and responsible for marketing and transactions at DTZ, said: 'The slowing down in the Ile-de-France office market is consistent with the one in the French economy. The numerous landlords [in the region] are renegotiating their current leases in order to retain their tenants and are reviewing office rents downward to keep them in line with the market.'
While prime rents are still holding up, rental values for secondary office properties in the Ile-de-France region of France have fallen by up to 10% over the past 12 months, a new research report issued by property services firm DTZ shows. Jean-Luc Chalard, managing director and responsible for marketing and transactions at DTZ, said: 'The slowing down in the Ile-de-France office market is consistent with the one in the French economy. The numerous landlords [in the region] are renegotiating their current leases in order to retain their tenants and are reviewing office rents downward to keep them in line with the market.'
In the first quarter of 2009, investment volumes for the Ile-de-France region came in at under EUR 400 mln comprising a total of 20 transactions. The drop in transactional activity was mostly due to the lack of financing, the broker said. Just two deals exceeded the EUR 50 mln threshold during the first three months of the year, the IVG acquisition of a 6,000 m2 office building at Avenue de Friedland and the V2C deal in Boulogne-Billancourt involving the development of a 10,500 m2 project for an investment of EUR 80 mln.
