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Home Real Estate Office space

What does the Paris rental market look like?

by Inside Network
February 16, 2020
in Office space, Real Estate
Paris city skyline with Eiffel tower

The Paris office space rental market is unique in the sense that it is ever-changing. Paris is home to a very diverse office rental space market that includes large corporate offices and smaller co-working spaces. In fact, about 62% of the Parisian office space market is occupied by co-working spaces.

In recent years, increasing numbers of office space development projects have been launched in the Paris area in order to add additional space to the congested market in the French capital city. These investments have been mainly aimed at smaller companies who are in need of premium real estate in the centre of Paris.

It should also be noted that uptake of available rental space in the Paris area has been somewhat slower than that of other major European cities. This trend is, however, predicted to change in the coming years as more and more premium spaces are developed in the city centre and surrounding areas.

Upcoming projects for 2020 and beyond

The current property vacancy rate in Paris is around 7% and new building projects scheduled for completion in 2020 will add much-needed office space to the French capital’s office rental market. However, most of the building projects in the city centre area are aimed at either tech firms or designated to be used as co-working spaces.

This means that it may become easier for smaller companies to find suitable offices for rent in Paris while larger corporate clients may continue to struggle in their quest to find offices in Paris. The bulk of new developments are to be constructed in the west of Paris and a total of 3.2 million square metres of leasable space is expected to be available in the area by the end of 2021.

In conclusion

Paris can be regarded as one of the most important cities for both the French and European economies and as such continued development in the area is inevitable. With its adaptive culture, the city of Paris is bound to offer something for every business’s needs. New developments are already underway and upon completion, these properties will add valuable space to the Parisian office space rental market to satisfy the demand for space.

Tags: CoworkingGuideParisVacancy rates

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