Prime office yields in France will reach 6% by the end of the first quarter in 2009, according to Savills' latest bulletin on the French commercial property market.
Prime office yields in France will reach 6% by the end of the first quarter in 2009, according to Savills' latest bulletin on the French commercial property market.
Savills said upward pressure on yields is expected to continue gradually throughout the year across all commercial property sectors. In terms of general investor activity the report notes that, while this has been muted over the last 12 months, particularly in the first part of 2009, there was a small revival recorded during the last quarter of 2008, which saw the total for the year increase to EUR 13.9 bn.
The report predicts that investment volumes for commercial property in France for 2009 will be in the range of EUR 10-11 bn.
Lydia Brissy, from Savills European research team, commented: 'It is the smaller lot sizes that are currently driving the investment market for all sectors, which has mainly been dictated by difficulty in obtaining debt. However, we expect larger transactions to reappear in the French market towards the end of 2009 as a predicted increase in sale-and-leaseback opportunities emerges.'
