French office investment hit a 10-year high in the first half of the year reaching €8.83 bn, according to new research published by broker BNP Paribas Real Estate.
The positive trend is largely being driven by economic growth particularly on the Atlantic coast, the Southwest and the former Rhône-Alpes region, the broker added.
'This strong economic trend in the regions has positive repercussions for office markets. They now represent about 40% of take-up, versus just 33% in 2014,' commented Jean-Laurent de La Prade, deputy general manager of BNP Paribas Real Estate Transaction, in charge of the regions.
With take-up of some 140,000 m2, an increase of 21% year-on-year, Lyon has bolstered its position as the top regional market. Investment stood at €232 mln so far this year but is expected to exceed the €1 bn mark in 2018 as a result of a number of ongoing disposals including the sale of the To Lyon tower.
Lille, the second-biggest regional market, particularly stood out with €204 mln of transactions, over double the same period a year earlier.
With over 84,000 m2 of take-up, Bordeaux has taken third place in the regional ranking for the first time since 2013. In terms of investment, offices accounted for 50% of the amount invested in H1, i.e. € 39 mln, a level equivalent to the first half of 2017.
BNPPRE said it expects France's regional markets to continue to perform strongly thanks to the strong fundamentals of the rental market, reasonable rents even for prime assets and a still attractive spread with Île-de-France.
'Occupier demand is underpinned by a buoyant economic trend that is unlikely to flag in the coming years,' added Jean-Laurent de La Prade.
