AVERAGE RENT INCENTIVES REACH AT 22% IN THE GREATER PARIS REGION
The average level of rent incentives for new lettings of offices above 1,000 sqm in the Greater Paris Region has increased over Q3 2017 to reach 22.3% (+0.2 point when compared to the previous quarter).
New office lettings above 5,000 sqm keep experiencing stronger incentives than others with a difference of +1.8 point in Q3 2017.
In the meanwhile, the secured length of lettings above 5,000 sqm is reaching at 8.7 years in average (-6% year-on-year) in Q3 2017 and 5.9 years (-1% year-on-year) for those from 1,000 to 5,000 sqm.
The average level of rent incentives ranges across market sectors from 15% in Paris Centre West (non-CBD) to 26.6% in Inner Rim. One of most significant change over the quarter, is an increase of rent incentives by +2.2 points in Outer Rim.
All calculations are based on lettings that have been made by ImmoStat members. This allows an unrivalled coverage of 65% of the take-up that was observed for lettings more than 1,000 sqm over the last 12 months (66% for lettings more 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 aims to help Real Estate professionals gain a better understanding of rent levels.
The level of rent incentives is based on new lettings for offices space over 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 and letting size with a record that goes back to Q4 2012 and also offers custom selections with the help of an interactive map.