77 champs elysées case study

From mid 2001 until the decision moment (December 2002) the Parisian office market faced a decline. This statement is re-­‐enforced by the data we have about the vacancy rates and the negative rents evolution.

Contrary to previous years the vacancy rate increased from mid 2001 until mid 2002 to 3,36% in Paris central business district. We have to understand why this happened. The reason is simply the fact that companies had a better option (high quality offices and lower rents) in Paris suburbs, and some of them opted to change. However, these changes were not powerful enough to have a big effect on the market, they only led to a better balance between supply and demand which led to a 8% decrease on the rents level (2001à2Q2002).

Has a Grosvenor’s director and taking into account the current market situation i have to measure de pros and cons and decide if it is better to hold or sell the 77 Champs Elysées.

This is a 1.685 square meters building in one of the most famous streets in Paris, France and Europe. Built in 1930 this building has 6 offices floors, 1 retail unit ground floor and is situated in the