(BFM Stock Exchange) – La Foncière de Bureau finds itself under pressure on the Paris Stock Exchange while the American bank lowered its advice to “sell” on the action.

Icade Tangue on the stock market this Thursday, July 10. La Foncière specializing in office real estate gave way 2.7% in the early afternoon, after losing 5.5% in the morning.

The action is under pressure due to a note from Goldman Sachs. The American bank lowered its “neutral” advice to “sell” while bringing its price target to 18 euros against 19 euros previously. This target is approximately 15.6% at the end of Tuesday.

The American bank cites three reasons to justify its decision. The establishment first evokes the whisper French growth. Its economists count on an average of 0.8% over the period 2025-2027 which places France among the worst students in the euro zone.

They also fear the holding of early legislative elections which would increase uncertainty and more deteriorate economic activity and the trajectory of public finances.

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Risks on lease renewals

Second point mentioned by Goldman Sachs, the weakness of the Parisian office real estate market. In the second quarter, the demand placed (that is to say a search for goods by a professionals who led to the signing of a lease) dropped by around 21% in Île-de-France and its level was 38% below its average of 25 years, according to Immostat.

In parallel, the offer of offices increased by 20% over the same period while the vacancy rate (the unoccupied office rate) increased by 10.5% in the first quarter, according to Knight France, against 10.2% at the end of 2024.

However, Icade’s active ingredients remain ultra -concentrated in the Ile -de -France region. The offices located in Île-de-France thus represent three-quarters of its heritage.

For all of these reasons, “we are more cautious about Icade rental income prospects”, writes Goldman Sachs.

The American bank also perceives risks in terms of the renewals of Icade commercial leases. Goldman Sachs explicitly quotes KPMG which rents a 40,000 square meter building called “Eqho Tower” in the Defense business district. This lease could expire in 2027 and not be renewed.

“Consequently, we increase our vacancy rate forecasts in 2028 to 25% and 2029 to 24%, against 22% previously, given the likely expiration of the KPMG lease in the EQHO tower in 2027,” said Goldman Sachs.

Icade will publish its results of the first half on July 23.