Regional office real estate confirms its resilience in 2025

A rental market that has been "affected" but remains resilient

According to Jean-Laurent de La Prade, Deputy Managing Director of BNP Paribas Real Estate Advisory, in charge of the Regions Division: “These findings actually reveal a profound restructuring of the French office market: despite the observed decline, the regions as a whole have decreased less than the Île-de-France region over ten years, mechanically reinforcing their weight in national take-up. This dual interpretation (local decline but overall growth) reflects the enduring establishment of the regions as a structuring balancing force in the market.”

The trends vary depending on the segment.

Small office spaces under 1.000 m² contracted by 15%, totaling 653.000 m², while the mid-market (between 1.000 and 5.000 m²) saw a slight decrease of 3% compared to 2024, reaching 408.900 m². Above 5.000 m², the market grew slightly (+1%), totaling 218.300 m², driven by significant activity in the tech, industrial, and public/parapublic sectors, confirming their leading role in the largest transactions.

Performance varies considerably across different regions

Despite a 21% decrease compared to 2024, Lyon retains its position as the leading regional market, with 186.000 m² leased, ahead of Aix-Marseille (168.000 m², +20%), which for the first time surpasses Lille in third place with 162.000 m² leased, +9%. Toulouse and Bordeaux follow, with 127.000 m² (-1%) and 122.000 m² (+5%) respectively.

This ranking illustrates the strength of several key metropolitan areas, while some medium-sized cities, more sensitive to economic fluctuations, are experiencing a more pronounced decline.

In terms of overall supply, this amounts to 3,4 million m². Users have predominantly favoured second-hand, which represents 74% of the volumes placed in 2025, up 16% compared to 2024, while new construction is registering a slight rebound of 3%.

For Jean-Laurent de La Prade: “On the other hand, a 24% decrease in ongoing construction projects clearly signals the shortages to come. This trend is a direct consequence of the dramatic drop in off-plan sales. In this context, renovating vacated spaces appears more than ever as a strategic lever for landlords: it not only allows them to meet a demand for quality, but also to offer a credible alternative to new premises in an environment where these will become increasingly scarce.”

The turnkey rental and owner-occupied segment grew by 9%, driven by several major deals launched in 2025, including the BEFA (Building Lease Agreement) signed with EDF in Marseille for 30.700 m². This represents the largest regional deal of the year, illustrating how major users are turning to customized projects when the available supply no longer meets their expected standards.

Rental values ​​offer an encouraging signal in a market that remains under pressure. Prime rents for new properties are holding steady, or even rising, in most major regional cities, with the exception of Grenoble.

For Jean-Laurent de La Prade: "The significant differences that remain between rents for new properties in the regions and those charged in Île-de-France also reinforce the attractiveness of regional markets, which maintain a competitive position while offering real room for growth in the medium term."

An investment market that is slightly down but more selective

With a total of €7,1 billion committed in 2025, the overall investment volume in the region is experiencing a slight decrease: -6% (compared to 2024) and represents 40% of the national investment volume. The most dynamic asset class is logistics (35%), followed by offices (21%), hotels (19%), and retail (16%).

For Jean-Laurent de La Prade: "The 2025 performance figures reveal very different sectoral drivers: the hotel industry largely supported Aix-Marseille and Nantes, business activity was a key factor in Bordeaux's excellent growth, while logistics enabled Montpellier to finish the year on an upward trend. As for the office sector, it supported the growth of Aix-Marseille, Toulouse, and Bordeaux, confirming its structuring role in several regional metropolitan areas."

Lyon remains the leading regional market with €825 million invested. Aix-Marseille follows with €454 million (+35%), ahead of Toulouse, which reached €269 million (+43%). Lille now ranks fourth with €258 million, registering a 22% decline. Bordeaux saw significant growth to €215 million (+75%), closely followed by Nantes with €212 million (+57%). Finally, Montpellier rounds out the ranking with €109 million (+8%).

In the office real estate segment, 1,5 billion euros were invested, representing a slight decrease of 6% compared to 2024.

The surprise is Aix-Marseille, which takes the top spot with €317 million, ahead of Lyon, which falls to €227 million (-46%). Toulouse shows a notable increase with €140 million (+70%), while Nantes (€122 million, +10%) and Nice/Sophia (€113 million, +35%) also see growth.

Lille saw a marked decline (€99 million, -50%) but remains a key market. Rennes stabilized at €89 million (-10%), while Bordeaux recorded the most spectacular increase after a virtually blank year in 2024 (€86 million, +89%).

With €62 million, Montpellier is down -25%, and Biarritz enters the rankings temporarily with €13 million.

The typology of buyers is changing significantly in 2025 in the regional office market.

Real estate companies are strengthening their presence and now represent 34% of the volumes invested, benefiting from an environment more favorable to asset management and redevelopment strategies.

Conversely, SCPIs, historically dominant, continue their decline and now represent only 27% of the investment volume. This decrease is mainly due to the increasing diversification of their strategies, with a marked interest in European markets offering more attractive tax regimes.

Private investors (11%) remain active but very selective, while REITs have continued an upward trend since 2024.

Regarding risk profiles, Core transactions remain by far the most common, ahead of Core+. Furthermore, the speculative tranche has virtually disappeared since 2023, linked to the decline in off-plan sales. Similar to the Île-de-France region, the value-add segment is growing significantly; however, unlike in Île-de-France, the redevelopment market remains marginal, despite developers' genuine desire to expand it.

Prime yields are consolidating around 6% across major regional cities, reflecting a gradual alignment of yield levels. Simultaneously, a slight decompression is observed, ranging from 5 to 20 basis points depending on the city, extending the adjustment begun in recent quarters.

For Jean-Laurent de La Prade: "Generally speaking, regional yield rates now fall between those of the Western Crescent and La Défense, confirming the intermediate but attractive position of regional markets in the national hierarchy."

Illustrative image of the article via Depositphotos.com.