However there is a reconstruction of the offer

The shortage of offices threaten Council of Ile-de-France market This scenario announced for eighteen months by real estate advice would be inevitable: more a large new area in 2013. Still distant, this perspective enchants not tenants that already anticipate an increase in rent while the market was barely recovering. The renegotiation of leases with lower rents franchises are still topical. Since a few months, the statistics are an improvement of the activity. According to figures published last week by Immostat-IPD, offices available in Ile-de-France at September 30, 2010 is stable with 3.6 million square metres. More than 1.6 million square metres were leased, a result up 37 from 2009, in the same period. On the whole year, progress should be 300,000 m2(2,2millionscontre1,9), still near record in 2007 to 2.7 million square metres.

Some signs show the renewed strength of a niche market, one of the great Parisian surfaces coveted by all. Three significant transactions are finalised within a few weeks in the 8earrondissement. 52, Avenue Hoche, a building of 11,130 land Eurosic m2propriété, was chosen by the law firm of Allen & Overy; the 54 rue La Boétie, 20,000 m2appartenant in KanAm Grund were leased for 12 years strong pharmaceutical group Sanofi-Aventis. Finally, 5, avenue Kléber, 23.600 m2rénovés were purchased by the Group of reinsurance SCOR to Beacon Capital Partners.

Abundance of empty surfaces

"We lack quality, green and well placed buildings", says Jacques Bagge, Director of the Agency Department at Jones Lang LaSalle. "In Paris intramural and Paris West, last generation offices to rent in record time." "The problem is that this offer runs faster that it reconstitutes itself," he assured. According to BNP Paribas Real Estate, the part of the nine available one year offer weighs 28 in the second quarter of 2010 compared to 36 over the same period in 2009, historical year in terms of deliveries at more than 1 million square meters, which probably explains the abundance of new and empty surfaces (see below). "The pace of deliveries will be supported for another two years." Incurred before the crisis, operations will be delivered in 2011 and 2012. Then, the production decline in 2013. "As of 2009, stopped the flow of projects, but it takes two to three years between the launch of an operation and its completion," says Philippe Perrello, Associate Manager of Knight Frank. The DTZ Council plans to turn a drop in shipments in the nine, with 650,000 m2en 2010, then 300,000 m2en 2011 and foul less than 250,000 m2en 2013, funding. Needed to even cry wolf Some operators refute this alarmist rhetoric. For Alexis Motte, President of Mobilitis, "this phenomenon of shortages is not news." It is true that in some sectors such as in Paris centre or first Crown South and West, the choice of sites are dampened. But it remains square metres to lock. "Moreover, rents continue to fall." The 1.3 million which will be completed by a year in addition to the 3.6 million of square meters available immediately. In twelve months, the rate of vacancy in Office buildings would have increased by half and would reach 6.8.

Rumor or threat, the shortage is not bad news for everyone. "The brokers have interest to maintain this noise," says André Lajou, Director of the real estate business in Gecina. "Emphasize the risk is a way for them to encourage developers to launch operations in white", continues Olivier Wigniolle, CEO of Allianz Real Estate France. The argument is also effective to convince large still undecided users and concerned to find anything in a year. "Real estate advice shout scarcity by taking as a total absence of launches." However there is a reconstruction of the offer. "Especially, there is a size unknown: the evolution of demand for business", said Chris Linney, Director of real estate investment at Henderson Global Investors.

To date, even if the recovery is not certain, some companies in phase of development and hiring are for larger offices. The vast majority seeks priority to streamline costs and surfaces. "The mobility of the market remains a constant," says Alexis Motte. "M2 leased in new or the old restructured, a company release quality poor and difficult to relouable 110 m2" complete. More than the shortage of new surfaces, the transformation of the deserted former premises is probably the next challenge, more complex, for the sector. Often obsolete and poorly arranged, "energy" and too costly to expenses, these buildings are struggling to meet candidates tenants. Their stock increases. BNP Paribas Real Estate refers to 600,000 additional square metres in a year. Between restructuring and demolition, their owners have not decided.