Real estate funds facing the big bang of the rental market

Posted on Jan. 11, 2021, 3:44 p.m.

Containment, administrative closures, generalization of teleworking… The storm caused by the health crisis is giving real estate asset managers a cold sweat. “We are going through a difficult rental market phase, in line with the economic situation”, predicts Marc Bertrand, CEO of Amundi Immobilier, the market leader in France with 40 billion euros in assets. Engie recently struck people by giving up renting two of the six buildings of its future headquarters planned to accommodate 10,000 people at Garenne-Colombes, in Hauts-de-Seine.

Even before the rental market contraction, last year investors lost a portion of their income. “We estimate the drop in rents collected on the institutional office market in France at -5% in 2020 and at -2.5% the drop in 2021, due to the application of the ILAT index [loyers des activités tertiaires, NDLR] », Indicates David Simon, member of the management of AG2R La Mondiale. For their part, unlisted products, distributed mainly to savers (SCPI, OPCI, etc.), have already abandoned“Around 100 million euros” rents, postponed or canceled, or from 5 to 10% of their annual revenue, according to Aspim, the lobby of the profession. After spring’s trial and error, landlords who waived the November rent for businesses and SMEs forced to close are entitled to a 50% tax credit. Most of the actions taken are not free for tenants. Investors, for example, require an additional year of lease against a month’s rent free.

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