- Activity levels in the French commercial real estate investment market remained high in 2022, with an investment volume of almost €28 billion. However, the pace of activity was patchy, with a very sharp slowdown observed at the end of the year
- The French market has never been so diversified in terms of asset classes. For the first time, offices accounted for less than half of the volumes invested in France (49%)
- Retail asset performance was remarkable, but inflated by a few unrepresentative mega-deals. Only the retail park segment now has real market depth
- Despite the questions arising from macroeconomic changes, the integration of environmental constraints, and ESG approaches in building lifecycle management, investors continue to be attracted to office assets to develop a “manage-to-Core” strategy
- Regional areas have continued to achieve growing investment volumes thanks to their many advantages such as diversity of assets, the resilience of the rental market for quality buildings, low rental volatility, smaller asset size and higher yields than in the Ile-de-France (Paris) region
- The structure of yields is changing, with accelerated decompression in the fourth quarter of 2022. For Core offices, the gap between yields has widened. Previously between 3.00 and 4.00%, yields now range from 3.50/3.75 to 6.00% in Ile-de-France, due to more stringent criteria for the category
- These current adjustments point to a more resilient French market in the face of the economic downturn and, above all, an ability to rebound more quickly in the short and medium term
