Paris – Choosing Serviced Offices in Paris
It is widely recognised that serviced offices take away the pressure imposed by the onerous and long-term obligations of a traditional office lease, and the flexible nature of the agreements allow the business itself to stay flexible, agile and reactive. This is something that has been recognised as ever more important since the economic downturn of 2008.
Since their introduction to the office space market in the early 1990’s serviced offices have grown and grown in popularity and today you can find serviced offices in 600 cities across 100 countries across the globe.
Their introduction into new markets continues and it has been predicted that the serviced office market in the emerging economies of Brazil, Russia, China, India, Indonesia and South Korea is set to double by the year 2018.
The idea of serviced offices was conceived by a travelling businessman on a business trip to Brussels when he realised that there were no business space facilities in the city other than his hotel room, hotel lobby or a restaurant. Very soon after that you could find a serviced office in every major town and city across Europe.
Paris is of no exception and now you can find a vast array of serviced office options ranging from space on the prestigious Avenue des Champs Elysees just two minutes from the Arc de Triomphe, to the iconic La Grande Arche in Paris’ impressive business quarter Paris La Defense, already recognised as one of the most important business areas in Europe and home to over 1,600 companies.
The French capital is the most populous cities in France with a population of 2.25 million within its city limits however its total metropolitan area is much more substantial totalling over 12 million inhabitants making it one of the largest in Europe.
The city has one of the largest Gross Domestic Products (GDPs) in the world at €605 billion and due to its high concentration of national and international political, cultural, fashion and scientific institutions is one of the world’s most popular tourist destinations. In fact in 2013 Paris received approximately 16 million foreign visitors, making it the third most popular in the world after London and Bangkok.
In recent times the economy in Paris has been gradually shifting towards high-value service industries such as finance as well as high-tech manufacturing such as electronics away from its traditional industrial heritage. Practical Paris resources can be found here.
Economic growth however in Paris is currently weak and unemployment is high which has slowed down the occupier decision-making process and this is reflected in the total office space take-up for 2013 being down by 17% on 2012.
Most deals have been below 4,000 square metres (approximately 400 desk spaces) in recent times which is unusual for any major capital city. The reduction in transactions has led to a sharp increase in the availability of office space which currently stands at 4.4 million square metres equating to a vacancy rate of 8.2%. More Tourist related resources can be found here.
Due to the increase in stock headline Grade A leasehold office rent now stands at €800 and €560 per square metre per annum in the Paris CBD and Paris La Defense respectively which show reductions of 2.4% and 3.6% on the previous year. However new space continues to be developed with just under 1 million square metres completing in 2014 and with only 50% of this being pre-let it would indicate that office rental levels in the city will continue to decrease even more so.
Additional resources have been compiled below: