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Summary
from 2020 onwards, the market for third places, particularly business centers, is adapting to a changing landscape. These spaces are known for their comprehensive offerings, such as mail management, secretarial services and fully-equipped offices with flexible leases. They cater to a wide range of customers, from start-ups to large corporations, and have grown by 2-4% over the past decade. Despite competition from coworking spaces and the impact of increased telecommuting due to the COVID-19 pandemic, business centers have shown resilience by incorporating shared spaces and targeting new trends such as hybrid office solutions.
evolution and Expansion of Business Centers and Third-Places: Adaptation, Flexibility and Competition in a Dynamic Market
Market segmentation has intensified with the arrival of new entrants, notably real estate players and hotel groups. The importance of location, infrastructure quality and service innovation is paramount to differentiation in this mature but profitable market. Sales of combined administrative services grew steadily, although a slowdown was expected due to the pandemic. However, the total number of centers rose from 200 to almost 290, a sign of continued expansion despite the difficulties.
Regulations relating to commercial domiciliation and the SYNAPHE label continue to guarantee quality standards in the sector The country's third-venue market, particularly business centers, is demonstrating a dynamic approach to adaptation and resilience in response to various market pressures and customer needs. There is broad demand from a variety of customers, as evidenced by the statistics on the breakdown of business center customers in the Paris region, which reflect a diverse clientele including major groups, small and medium-sized businesses and entrepreneurs. Demand for business centers stems from the difficulties companies face in managing and anticipating office space and associated costs. Business centers offer fully-equipped premises, with services such as mail management, telephone permanence, Internet access, housekeeping and secretarial services.
This appeal stems from the advantage of a flexible, less expensive solution than conventional office rental. Companies can now choose an adaptable workspace with a range of services, thus converting fixed costs into variable costs, resulting in significant savings in time and space.
The market has expanded over the last decade, with a growth rate of between 2% and 4%. This growth can be attributed to the market's strategy of constant adaptation and the subsequent adoption of flexible, shared spaces. Les Echos points out that the average lease in a business center requires one to three months' notice, highlighting the flexibility of contractual terms. An important aspect of market segmentation concerns the real estate players, hotel groups, general investors and independent companies that have entered the fray, redefining the competitive landscape.
In this context, post-Covid-19 telecommuting seems to have paved the way for business centers as alternative workplaces. Scenarios foresee varying degrees of dependence on flexible office space, ranging from moderate to very high, depending on geographical distribution, need for assignment, cost savings, human resource benefits and risks. Innovation in service offerings is essential in this market, as evidenced by features such as green spaces, parking, coworking spaces and ancillary services offered by the industry giants.
Pricing also plays a crucial role. For example, in the Paris region, the average fully-equipped office rental costs between 600 and 800 euros per month, with flexible notice periods. The regulatory environment for business centers also shapes the market. Domiciliation companies must comply with strict criteria assessed by audits, which guarantee the quality of the services provided.
In addition, market segmentation reveals leading players such as Regus and Buro Club, with a considerable presence throughout the country. However, companies are not sufficiently aware of the benefits of third places and business centers. Only a small percentage of companies offer third-place working options.
Key market players shaping the future of flexible workspaces
The landscape of third places, and business centers in particular, has undergone a remarkable transformation, spurred on by changing demand and the competitive spirit instilled by the rise of coworking spaces. While many players have contributed to shaping this dynamic market, some have stood out for their significant influence and innovative approach to offering flexible workspaces. Here's a look at some of the organizations that are shaping the shared office space industry.
- Regus: A pioneering global workspace provider Regus is a household name in business centers and flexible workspaces. As a global titan, Regus has broadened its scope to meet the needs of an extensive customer base, covering the whole of France with around 120 centers. Its strategy is essentially to offer ultimate flexibility, providing turnkey solutions ranging from short-term office rentals to complete office spaces meeting all business needs. Renowned for its agility, Regus stays one step ahead by regularly incorporating shared space and even exploring franchising to expand its site offering.
- Buro Club: Extensive network of business centers Buro Club boasts a strong presence across France with 78 centers, creating a seamless network for businesses looking for convenient access to professional environments. Their offerings range from private office rentals to shared coworking spaces, their flexible formulas attracting a diverse mix of entrepreneurs, startups and large corporations looking for adaptable workspace solutions.
- Multiburo: Targeting transit locations Aimed at serving professionals on the move, Multiburo has carved out a niche for itself with 32 centers located in key transit zones such as railway stations. Its foresight in operating these busy areas offers a strategic advantage, providing easily accessible, high-quality workspaces for transient teams and mobile workers.
- Team Business Centers leverages local expertise while maintaining a national presence, resulting in a balanced approach to serving both local and relocated businesses. Their services are designed to meet the diverse demands of their customers, embodying the essence of the modern business center.
- Sofradom: Specializing in corporate domiciliation, Sofradom operates 47 centers, mainly in Paris, and specializes in the crucial service of corporate domiciliation. This service offers not only a prestigious address, but also activities such as mail management and tailor-made administrative support, essential for companies looking to establish themselves on the French market without the expense of a full office space.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 15/07/2022
Summary and extracts
1 Market overview
1.1 Market definition
Third locations are often shared and collaborative workspaces, characterized by their flexibility. The main third locations are coworking areas, business centres and telecentres.
The business centre differs from other third locations in that it is seniority and by its very complete offer . It consists of several premises, fully equipped, intended to be rented by companies for a variable period of time. Business centres are known for their flexibility because they offer several services:
- Mail management ;
- Telephone permanence
- Internet access ;
- Housekeeping
- Secretariat ;
All in fully equipped offices that can be small or large. They are often the multi-stakeholder solution The company is a major player in the field of IT, entrepreneurs, start-ups and IPT, as well as large groups.
Business centres emerged in the 1980s in the United States and rapidly evolved into the a way to physically establish your company without making a long-term commitment . It also allows companies to adapt to growth and market changes. The new trend of coworking spaces has increased competition in the sector in recent years, but the market has been able to reinvent itself and show resilience. At the beginning of 2019 it was reported that the growth rate was between 2% and 4% for the past ten years.
Business centres differ from co-working spaces by their spatial layout. Business centres offer separate offices to their tenants while co-working spaces are open-plan. Although business centres are trying to rejuvenate themselves by creating hybrid offices, a distinction can be made between these two offers by treating only business centres. Co-working, on the other hand, is the subject of an Businesscoot study specific
1.2 The French market for corporate domiciliation
For INSEE, business centres and other domiciliary companies fall under NAF code **.**Z: "This subclass includes the provision of a combination of day-to-day office administrative services, such as reception, financial planning, invoicing, file management and archiving, personnel activities, organisation of premises, mail services, etc., on behalf of third parties" [***].
Solid growth ...
1.3 Coworking competition a challenge for the sector
Coworking has indeed become very popular in the last * years, and, as shown in the graph below, the number of coworking spaces has even surpassed that of business centres to reach *,*** in **** in the words of bureauàpartager . It should be noted in the index that */* of the spaces are less ...
1.4 L'impact de la crise sanitaire
La crise sanitaire a provoqué plusieurs changements sur le marché de l'immobilier de bureau. Premièrement, les acteurs du marché ont dû se confronté à une paralysie du marché en ****. Les périodes de confinement et le recours au télétravail ont mis une halte à de très nombreux projets locatifs. ...
2 Demand Analysis
2.1 Wide demand from a variety of customers
According to Echoes The interest in the demand for business centres arose mainly from the difficulty of certain players (***) in managing and anticipating the evolution of company offices and the costs related to this evolution. Over time, business centres have proven to be excellent at meeting a very broad demand that ...
2.2 Flexibility and accessibility: major arguments for business centres
The strategy of the business centres can be summed up as a constant adaptation to the market and its changing demand.
The appearance of co-working spaces or meeting rooms offered by hotels have firstly constituted threats to the sector, but, he was able to draw on what was on demand in ...
2.3 A qualitative solution, yet not very democratic in a mature market
A working atmosphere in a quality setting
At a time when everyone has an internet connection at home or on their smartphone, business centers offering shared spaces or a "turnkey" office for a few hours, know how to offer their professionals a place dedicated to work in a serious atmosphere. Some ...
2.4 Does teleworking make room for flexible offices?
The covid-** crisis saw an explosion in the number of homeworkers. Teleworking has attracted a large number of companies during this period and many are those who say they want to continue to implement these practices in the future
The Néo Nomade site, carries out a prospective study of the ...
2.5
3 Market structure
3.1 A segmentation that is becoming denser with the emergence of new players
Two types of business centres characterize the market: on the one hand, the major national and international groups (***), and on the other, a majority number of small independent business centres Most of them have been active since the ****s and ****s. [***]
The business centre market has been segmented in the same ...
1.1 Definition and scope of study
According to the **** study conducted by Colliers International France a commercial real estate consulting firm; the business centres are always located as close as possible to their clients according to their type. This reality is most of the time reflected in the business districts of large metropolises. Thus, while some people ...
3.3 A redefinition forced by profitability and competition
Third-party locations are facing the challenges of profitability. Business centre revenues are derived primarily from workstation rentals. These are twofold:
Resident workers' area: monthly rental Nomadic space: rental by the hour
According to CCI Paris a space is profitable if the occupation rate of the nomadic space is permanently close to ...
3.4 Peripheral market players
Actors who intervene in work spaces
There are a number of related players positioned on the market for the animation and design of flexible workspaces in companies. They are positioned on the market from the design of the space to its animation
Referencing platforms
Finally, there are now a number of ...
4 Analysis of the offer
4.1 An ever-increasing number of services on offer
Lightening of leases, gain of freedom of action for companies, enlargement and modulation of the premises according to the activity, organization of events, but also spaces focused on meeting with other entrepreneurs... The giants of the sector, specialized in renting work spaces to professionals, are constantly building and innovating for their ...
4.2 Prices that vary according to the offer and the service offered
Among the offers of business centers are
Renting equipped offices
Les Echos report that in ****, for an average of €*** in the Paris region, and with a flexible notice period of * to * months, companies can use a business centre and have a closed and equipped office in a place providing service and ...
5 Regulation
5. Regulation
A domiciliation, is a commercial address, but also an administrative and fiscal address. These last two notions are introduced in the official texts by the order n°**-**** of **/**/** modified by the law n°**-**** of **/**/** relating to the domiciliation of companies and by the decree n°**-**** of **/**/**.
The activity ...
List of charts
- Répartition des clients des centres d'affaires
- Évolution du chiffre d'affaires HT des services administratifs combinés de bureau
- Quelles actions avez-vous mis en place pour faciliter les déplacements domicile-travail de vos salariés?
- Évolution du nombre d'espaces de coworking et de centres d'affaires
- Evolution du nombre de tiers-lieux
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Latest news
IWG has declared France a teleworking and co-working paradise. - 18/08/2022
- World leader in co-working spaces
- More than 130 centers in France, the Group's second-largest market after the United States
- 45% increase in visits to French centers in the first half of 2022
- More than 3,300 sites in 175 countries
- Sales of €2.7 billion in 2021
- Telecommuting accounts for 29% of business
- IWG relies on a franchise development strategy to "build the world's leading provider of digital workspaces".
- The holding company employs over 12,000 people
- Opened 70 new sites in the first half of the year, of which 76% are franchises
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