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February 27, 2015

In the first of a series of reports on the Grand Paris project, JLL identifies three locales that should be on the radar of property developers and investors.

The Grand Paris Project is a bold concept for the future redevelopment of Paris, centred around a transport plan for the region.

While there is little doubt that new commercial centres will hardly spring up at each of the 72 stations on the Grand Paris Express transport line, it is assured that the Grand Paris project has implications for an area far beyond the confines of the Paris central business district.
Jones Lang LaSalle’s (JLL) ongoing report series on the project, Grand Paris and commercial real estate: future trends, will provide insight into the property and business implications of the Grand Paris project.

In its first report, JLL has identified an area of interest already undergoing significant change. The area spans from the Porte d’Aubervilliers to the Porte d’Asnières via Saint-Ouen.
Within this area are three locales that are indicative of the promise of the Grand Paris project: the Northeast Paris area in the 18th and 19th districts; Clichy-Batignolles in the 17th district; and the Docks eco-district in Saint-Ouen.

It is an exciting time for these areas – they are undergoing transformation, with working-class housing alongside manufacturing and new residential and office buildings.

The critical mass will come in time, but the flexible land use available now offers development potential. This process will be speeded by the introduction of new transport infrastructure.

Large mixed-use projects have been launched in all three districts.

One of the limitations for the development in the short to medium term is the fact these three areas are highly dependent on a single Metro or RER line, which restricts the transit of office workers to and from new buildings.

However, as these precincts develop over the medium to long term, the challenge will be to bring services, retail and strong public facilities to create lively destinations, living areas which are lively and attractive for both local residents and corporate occupiers alike.
JLL believes a combination of factors will ensure the success of these projects and their integration into the wider Grand Paris metropolis.

These projects share characteristics with urban development – quality urban environment, social and functional mix, improved transport links – which should contribute to their success as these are the key factors that determine an area’s attractiveness.
In the medium term, transport infrastructure will be key in determining the attractiveness of these locales to both residents and corporates.

Each of the three areas considered by JLL’s report would see stronger and improved transport links that  connect these districts to the strategic areas of the wider city.

Furthermore, new links are to be created between economic and residential centres which will further drive development in these territories.
Here is a quick snapshot of the development potential, and planned transport upgrades, for the three precincts.

Northeast Paris (18th & 19th districts):
• Urban renewal area: 200 hectares
Northeast Paris needs to develop its image as an office hub and its maturation rate will be connected to the office areas in the north of Paris.
Transport improvements:
• The opening of a station on RER Line E in December 2015 will provide improved access to major stations in Paris and direct access to the CBD.
• The extension of line T3B to Porte d’Asnieres in 2017 will also allow residents in the West to reach the district without having to travel via Paris’ centre.

Clichy-Batignolles (17th district):
• Urban renewal area: 50 hectares
Over time, Clichy-Batignolles will become part of the business districts to the west of the capital. It will mature more quickly due to its geographic location and its proximity to existing business districts in Paris. In time, it will add to the existing office supply and benefit from the already established image of Western Paris as an office district.
Transport improvements:
• The arrival of Line 14 and two new stations in 2019 will considerably improve access to this locale.

Docks eco-district in Saint-Ouen:
• Urban renewal area: 100 hectares
Corporates have recognised this area as an office location for several years, and the project will bring further legitimity legitimacy to this location as an office market.
Transport improvements:
• Metro Line 14 will arrive by 2019, opening a section of the locale towards Paris and through, in the longer term, to the future transport hub of Sain-Denis-Pleyel.

While each of these precincts have potential for future development success, JLL believes the progression of each of these three sites will likely be quite different in terms of their location, their size and their position within the wider city context:

Clichy-Batignolles is set to become a full district of the capital due to its close proximity to the centre of Paris. Its office market future will go hand-in-hand with that of the Central Business District and the Western Business District. The Clichy-Batignolles market should quickly reach maturity in terms of offices, as long as this new district is fully immersed into Parisian activity. However, the site is not large enough to become an independent office centre in its own right.

Saint-Ouen and Northeast Paris will form part of the wider North Paris area in the context of the Grand Paris project with the Saint-Denis centre, the Saint-Denis-Pleyel hub and the Territorial Development Contract for this territory. The pace of office market maturity will vary across these two sites. Saint-Ouen already has a tertiary office image which will be further strengthened by the Docks project, whereas Northeast Paris has a more industrial image and still needs to find its place within this sector. Northeast Paris and Saint-Ouen are at different stages of office market maturity, but are both in the same geographic area to the north of the capital. Saint-Ouen is well ahead of Northeast Paris in terms of office image.

The full report – Grand Paris and commercial real estate: future trends – is available on the JLL website: http://www.grand-paris.jll.fr

 

 

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