- Blackstone is working with CBRE to raise a €500M loan secured by the Trocadero office complex in central Paris, marking the largest financing of its kind since interest rates surged in 2022.
- The acquisition, priced at €705M, would be a major vote of confidence in Europe’s premium office market, which is beginning to recover after a prolonged downturn.
- Rising prime rents and limited new development are drawing institutional players back into the sector, with similar large-scale sales now underway in Paris and Frankfurt.
Testing the Market’s Depth
Blackstone Inc. is preparing to finance its €705M purchase of the Trocadero office complex in Paris by securing roughly €500M in debt—a move seen as a strong indicator of Europe’s ongoing office recovery, sources told Bloomberg. The deal—if finalized—would be the largest loan against a European office asset since interest rate hikes stalled the market in 2022.
CBRE has been tapped to source the financing, but neither party has commented on the ongoing deal. German fund manager Union Investment is reportedly the seller.
An Early Sign of Recovery
The office market across Europe has faced a steep slowdown in large transactions due to rising interest rates, price uncertainty, and post-pandemic shifts in demand. But trophy assets in top-tier locations—such as Trocadero in Paris’s 16th arrondissement—are now attracting renewed interest.
James Burke of Savills said investor appetite for major office deals is returning, helped by stronger competition among lenders and improved confidence in long-term rental growth amid signs of a broader office recovery.
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Market Momentum Building
A €500M loan would mark a significant milestone in Europe’s slowly reawakening office sector. Smaller, prime assets in cities like Paris and Frankfurt have kept transaction volumes alive, primarily through wealthy private investors with less dependence on leverage.
Institutional investors, however, had largely retreated—until now.
Other Major Sales in the Works
The Blackstone move is inspiring other sellers to re-enter the market:
- Invesco has mandated CBRE to market the Capital 8 office in Paris, which could trade for up to €1B.
- GIC Pte and JPMorgan Asset Management are also seeking €900M for Frankfurt’s Opernturm tower.
These large-scale listings suggest that institutional confidence is recovering alongside demand.
Rents Up, Supply Down
Fundamentals support the shift. According to Knight Frank, prime office rents in Greater Paris have climbed 14% year-over-year, reaching €1,170 PSM. Frankfurt, too, saw record take-up of 366,000 SM in H1 2025, per BNP Paribas Real Estate.
Why It Matters
Blackstone’s pending deal—and its scale—represents a turning point for Europe’s beleaguered office sector. If successful, it could pave the way for more institutional capital to re-enter the market, particularly for well-located, high-quality assets with limited new competition.
With developers hesitant to build amid financing constraints, existing premium offices may see rents and valuations stabilize—or rise.
What’s Next
More lenders are expected to compete for deals like Trocadero as interest rates plateau and investors refocus on Europe’s gateway cities. If Blackstone secures the €500M financing, it could unlock a new wave of major office transactions across the continent.
