Of the district’s four million square metres of office space, around 15 per cent is currently vacant due to reduced demand, as many companies have shifted to remote work or adopted more flexible arrangements after the pandemic, according to Pierre-Yves Guice, the CEO of Paris La Défense, the government agency overseeing the district’s planning and development.
The 15 per cent vacancy rate is higher than that of central Paris, though it is comparable to Canary Wharf in London as well as other prime business districts worldwide, Guice said. Despite the elevated vacancy rate, the rental yield in the district has remained largely stable at around 6 per cent over the years, he added.
“Owning an office tower in La Défense is quite a steady investment,” Guice said. “It’s a known and safe quantity over a long period, provided the offices are regularly renovated and maintained.”
Since 2018, La Défense has planned to invest €800 million (US$845.9 million) over the following decade to modernise the district’s buildings and infrastructure. The state-owned company has also been fostering relationships with Chinese cities and other governments over the years.
