PARIS-Office leasing in the Paris region is likely to flattenout next year at around 23.7 million square feet, after rising from19.4 million square feet in 2009, Jones Lang LaSalle says in a newreport.


"The economic and financial instability gripping Europe at theend of this year and forecasts of slower growth will weigh on userdemand," JLL said. But demand is likely to accelerate again in2012, particularly as firms seek more cost savings or find moreenvironmentally friendly premises.


Meanwhile, investment in Ile-de-France commercial real estate islikely to grow to $10.5 billion to $13.1 billion next year from $8billion to $9.2 billion in 2010. This will take investment back tothe normal levels seen between 2000 and 2004, JLL said.


Competition for core assets has driven yields down around 100basis points in the Paris Golden Triangle to 4.75%-5.25% and byaround 75 basis points in La D

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