Lyon market trends: office real estate is on the rise

Services industry activities are an important axis of economic development for Lyon, and these now account for two thirds of the assets of the metropolis.

As the second concentration of decision-making centers and second services industry area in France after Paris, the Lyon urban area now offers almost 4.6 million m² of offices, and the stock continues to grow.

Large-scale tertiary poles

Along with the Part-Dieu, the main business district that will be enhanced by high-rise buildings:

• the Oxygène tower, 39,000 m² including 28,000 m² of offices in 2010,
• the Incity tower, 40,000 m² in 2013,

other additional large-scale services centers will come online:

• the Confluence with successive delivery of sites such as
  • Timesquare – 6,000 m² delivered in 2008,
  • Monolithe – 14,300 m² to be delivered in 2010,
• the Carré de Soie, Touly programme, 11,000 m² by 2011,
• Vaise, Docksite, 11,000 m²
• Gerland

This multiple hub and the ongoing construction of quality real estate projects to meet the demands of business have meant that the service sector has remained strong in 2008.

A solid market

In 2008 the Lyon market confirmed its strength compared to other cities, with nearly 240,000 m² placed, a volume of activity above the average for the last five years.

In 2008, 60% of this surface area concerned new premises, which emphasizes the quality of the products offered.

• The Part-Dieu accounted for 22% of the m² leased in 2008 and
• Eastern Greater Lyon 15%.

More than a third of the demand involved sites:

• in Vaise,
• the West Business Hub,
• Gerland and
• La Confluence.

The buildings delivered posted a healthy occupancy rate in 2008 due to business growth in recent years and transactions of more than 2,000 m² that represented 45% of the demand filled.

Prices, increasing slightly, are now between 230 and 260 Euros excl. Taxes / excl. Charges/m²/year in new premium rental value.

This is a reasonable rent level that should allow Lyon to confirm its vitality in 2009.

During this difficult period, the city can also count on its:

• quality of life, and
• the quality of its infrastructure,

which are determining criteria for locating companies and managements that are consolidating and rationalizing their real estate property.