Post-Brexit, the Paris Office Market is thriving.

Despite the uncertainties surrounding Brexit, according to Knight Frank's Q3 Paris Office Market Outlook Report, office take-up in Paris is anticipated to exceed the long-term average.

In the first half of 2016, office take-up in the Île-de-France area was 1.2 million square meters, up from the same period the previous year. The outlook is expected to remain good, with total take-up expected to reach 2.4 million square meters for the full year. property

Despite the fact that the CBD remained the main focus of occupier demand, the La Défense market saw a record first half-year take-up of 126,500 square meters. Increased occupier activity among major corporates such as Deloitte & Associés and Bureau Veritas contributed to the boost in demand in the area.

Strong pre-letting activity and a limited development pipeline resulted in a decrease in vacancy levels, leaving 4.1 percent of office space available in the city's central business district. The availability of Grade A space will continue to dwindle, as more than half of the development pipeline for 2019 has already been pre-let. Such favorable market conditions, on the other hand, may encourage developers to initiate speculative projects.

Office investment in Paris exceeded estimates in the second part of 2015, resulting in a more subdued start to 2016. Strong investor demand for higher-yielding non-core assets, as well as the completion of numerous large-scale transactions, have accelerated investment activity.

Prime rates in the CBD have hardened to a historic low of 3.25 percent due to pent-up demand for core assets. The shortage of Grade A space in the CBD and inner-city areas may result in rental rises and yield sharpening, but only the greatest locations and assets will be affected.

The investment and occupier markets in Paris are both looking good. The CBD continues to be a popular location for both occupiers and investors, and improvements in connectivity and mobility will add to the Greater Paris area's appeal, allowing the office market to expand further.

According to Philippe Perello, Office Head at Knight Frank Paris, "Concerns about Brexit had no effect on the Paris letting market, which continues to be distinguished by its depth and dynamism. The CBD and La Défense are the main beneficiaries of this situation.

The ever-dwindling supply of properties-to-let has benefited the investment market by driving domestic investors to focus on more speculative assets and attracting some new investors, primarily from Asia, to enter the Parisian market "..

"Occupier and investment confidence is strong, despite Brexit uncertainty," said Vivienne Bolla, Senior Analyst at Knight Frank. "We can expect a continuation of robust performance for the remainder of 2016 and into 2017."