AVERAGE RENT INCENTIVES REMAIN AT 22% IN THE GREATER PARIS REGION
The average level of rent incentives for new lettings of offices in the Greater Paris Region has remained stable over Q2 2016 as it increased of 0.1 point vs the former quarter to reach 22.1%.
New office lettings above 5,000 sqm keep experiencing stronger incentives with a difference of +4.5 points in Q2 2016 against other transaction, the highest over last 3 years.
In the same time, the secured length of lettings above 5,000 sqm is reaching 9.0 years in average at the end of Q2 2016 vs 6.1 for other lettings – each one progressing over the year by respectively 15% and 6%.
The average level of rent incentives ranges across market sectors from 15.1% in Southern Paris to 28.0% in La Défense. The strongest progression over the quarter was again observed in the Outer Rim where incentives have grown from 21.5% to 22.9%.
The calculation is based on lettings that have been assisted by ImmoStat members. This allows an unparalleled coverage of 75% of the take-up that was observed for lettings greater than 1,000 sqm over the last 12 months (84% for lettings greater than 5,000 sqm).
ABOUT THE INDICATOR
In December 2014, ImmoStat launched a new indicator about average rent incentives in the Greater Paris Region. This new publi-cation is released one month after the others. It is designed to help Real Estate professionals gain a better understanding of rent levels.
The level of rent incentives is based on new lettings for offices greater than 1,000 sqm that took place in the Greater Paris Region over the last 12 months. It takes into account rent free periods as well as capital expenditures and step rents.
ImmoStat delivers analysis about rent incentives with all possible details by sectors, letting size, as well as cities with a record that goes back to Q4 2012.