Rental prices in France

In Europe the commercial rental property stock varies greatly.

It may be found, in particular in the major cities, proposal for office lease in buildings which meet recent environmental standards (BCC as for low energetic consumption…), as well as leases for historic properties which were previously private dwellings.

This fact makes complex the consideration of rental prices, especially since the «internal» quality of the office properties is not standardised. Only one voluntary classification exists (CIBE).

 

However,4 types of buildings can be mentioned:

1. New or restructured building (< 10 years old)
2. Recent buildings (< 30 years old)
3. Buildings which date from the 1950s
4. Old buildings (up to the beginning of the XXth century)

The standard is also relevant in determining the price.

Therefore, as it is difficult to construct large complexes (> 5000m²) in our towns, the more a building is capable of accommodating a large number of workers, the rarer it will be, and therefore the greater price it will command.

The following segmentation may be considered:

1. Independent buildings < 1500m²
2. Average sized building < 5000m²
3. Large complexes > 5000m²
               a. Tower blocks and high-rise buildings
               b. Business centres

Technical equipment constitutes an enhanced value criterion. The quality of the air conditioning system, security equipment, false floors and everything that facilitates the setting up of a computer network could be included here.

The «life span» of an office building tends to decrease, and it is commonly needed to restructure after 30 years and sometimes even less. Such extensive work generates substantial costs (€1200 to 2000/m² for the work + an 18 to 30 month period of non-occupation). So, few buildings meet modern standards, making it more expensive.

The final criterion which is beginning to stand out more and more is practicality; that is, the amount of m² required to set-up a workforce (number of work stations).
From one building to another, with the same facilities and for an identical surface area, 25% more workforce can be accommodated, and this is something which has a considerable impact in reducing the cost by work station.