OfficeLocaux and Corporate Real Estate, a contrasting balance sheet

Corporate real estate was not spared in 2020 according to BureauLocaux. The COVID-19 epidemic has had an unprecedented impact on all sectors of the economy. The year 2020 is last us but 2021 seems just as much plunged into doubt and uncertainty about the resumption of normal activity. Real estate was one of the sectors affected but it remained resilient. However real estate is a vast sector, so what about corporate real estate? Indeed, the generalization of telework has led employees to work from home. As a result, the offices were left empty. For this market, a question arises. What is the future of offices in the new year? BureauxLocaux takes stock ofcorporate real estate.

Corporate real estate in the territory

There were no less than 4,495,383 businesses and 691,000 start-ups in 2019, an increase of 17% over 2017. This entrepreneurial dynamic can be justified by the measures put in place by the government. To energize and encourage entrepreneurship, he has greatly facilitated the process of starting a business. Thus, companies, are organizations created for profit or commercial achieved through the production or sale of goods or services.

To function, they in most cases need physical space. This space aims to develop the business in order to sell. Corporate real estate comes into play, offering businesses space for their shops, offices or warehouses. Regardless of the industry, all companies need a head office or a legal residence. In addition, in most cases, they need a place to carry out their business activities. BureauxLocaux is one of the players in corporate real estate.

In the territory, the corporate real estate sector is important and players such as BureauLocaux are numerous. In 2019, the sector accounted for more than 35.4 billion euros. Moreover, in major cities such as Paris, Lyon or Toulouse, the annual vacancy rate was between 4 and 5% on average. In terms of the area of premises, Paris is in the lead. Indeed, the demand placed which represents the amount of useful space for rent or sale was more than two million square meters in the capital compared to 125,000 square meters in Marseille and Toulouse. Finally, companies spent an average of 880 euros per square meter in the capital compared to 325 euros in Lyon, 240 euros in Lille, 230 euros in Toulouse and 295 euros in Marseille (1).

Corporate Real Estate BureauxLocaux
According to BureauLocaux, the corporate real estate market has experienced the impact of COVID-19 and containment

2020, a nuanced year

Of course, COVID-19 did not go unnoticed. In 2020, the corporate real estate market experienced a decline in investment of 14.7 billion euros to represent 20.7 billion euros (2). BureauxLocaux has put together the results of this year 2020 in the midst of a health crisis. BureauxLocaux is the first real estate ad site for businesses. The platform thus gives access to a wide range of real estate for sale or rent throughout the territory. According to BureauxLocaux, the corporate real estate market saw a new trend emerge during the crisis, particularly in terms of research and location.

Thus in the Paris region according to BureauLocaux,searches for corporate real estate have fallen by 10% compared to 2019. However, the research seems to be on outlying cities. Indeed, the latter, especially of the second crown, fare better than the capital. This trend reflects a desire to escape from the city centres. Indeed, the pandemic has made city centres less attractive, people and businesses alike seem to be looking for “the great outdoors”.

Thus, despite the containment, the decentralization of corporate real estate is in force according to BureauLocaux. The city of Toulouse is the city that remains the most marked by the decline in searches. They fell by 20% over one year. The pandemic and the spread of telework have prompted companies to look for surfaces 20% smaller than in 2019 except in Paris.

In terms of prices, in the Ile-de-France as in the region, the trend of corporate real estate rebounded by BureauxLocaux remains on the rise over the year. For example, in Paris, sales prices increased by 10% to reach 11,000 euros per square metre. The city of Bordeaux is the only city in the region to exceed 200 HT-HC/m 2/year of average rent posted. However this is still 3 times less than the rents posted in the 8th arrondissement of Paris (2).

Thus, according to BureauLocaux corporate real estate has also experienced the impact of COVID-19. Through its report, BureauLocaux draws up a market that has undergone upheaval. However, the latter does not seem to collapse either, but that it is undergoing mutations. The interest of offices on the periphery is growing, and companies are looking for a better, healthier and quieter living environment away from the vagaries of the city.

Sources:

(1)”Corporate real estate in France – Facts and figures” Statista

(2) “Indicators 2020, BureausLocaux” OfficesLocaux, Statistical Studies 2020

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