Grand Paris project is driving shift in city’s office dynamics
The supply/demand dynamics are starting to change in the Paris office markets, stated DWS Alternatives Global Real Estate Research Analyst, Siena Golan.
The Grand Paris Express project, has been a key driver of development and pockets of oversupply have emerged.
“In particular, Grand Paris hubs, as they’ve been completed have resulted in some spikes in vacancy, particularly in some of the suburban markets,” Golan said.
“At the same time, you have occupiers increasingly moving from some of the outer suburban markets into central Paris, because of trends such as working-from-home and occupier consolidation,” she said.
These occupiers have sought the best space in the best locations. “These two dynamics, one of over development in certain peripheral markets, the other of occupier movement from these markets, has created pockets where, at the moment, there’s a bit too much office space,” Golan said.
The focus for DWS Alternatives is thus to ensure that the office space it holds in central Paris suits the new occupier demand.
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