AVERAGE RENT INCENTIVES REACH AT 23% IN THE GREATER PARIS REGION
The average level of rent incentives for new office lettings above 1,000 sqm in the Greater Paris Region increased in Q1 2021 to reach 23% (+2.1 points compared to the previous quarter).
New office lettings > 5,000 sqm continued to experience stronger incentives than others with a difference of +5.7 points in Q1 2021.
In the meanwhile, the secured length of lease > 5,000 sqm reached an average of 8.3 years (-1% year-on-year) in Q1 2021 and 6 years (-6% year-on-year) for those from 1,000 to 5,000 sqm.
The average level of rent incentives ranges across market sectors from 12.5% in Paris Central Business District to 29.1% in La Défense. One of the most significant change over the quarter, is an increase of rent incentives by +4.2 points in North Eastern Paris.
All calculations are based on transactions made by ImmoStat members. This allows an unrivalled coverage of 62% of the take-up that was observed for transactions > 1,000 sqm over the last 12 months (62% on space > 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 publication 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 office space over 1,000 sqm that took place in the Greater Paris Region over the previous 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.