CBRE's latest Paris Market Index says many occupiers are takinga "wait and watch" approach, and the brokers are not forecasting amassive surge in take-up during the second half. Therefore CBRE isforecasting between 1.8 million and 2.0 million sq m (19.373million to 21.5 million sf)of take-up for the whole of 2001, downfrom 2.3 million sq m (24.75 million sf) in 2000.

The report shows that immediate availability in the Paris regionis still low at around 1 million sq m (10.8 million sf) or 2.5% oftotal stock. And the development pipeline only includes some 3.3million sq m (35 million sf). Reflecting this restricted supply,prime rents have remained static at around €840 per sq m per annum($70 per sf per annum) in the Central Business District, althoughrents in the inner suburbs to the north, east and south are stillrising.

Another indicator of a cooling property market is the slowdownin investment activity. According to CBRE the record levels ofactivity seen in early 2000 have not been repeated. In the firsthalf of 2001 about €3.0 billion ($3.33 billion) was invested inParis, down from €8 billion ($8.88 billion) a year previously.Accordingly, prime office yields have softened to around 6%.

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