The booming tech sector in Paris is fuelling demand for office space, notably in the ninth arrondissement, where it accounted for 21% of the total take-up last year, according to real estate adviser Savills.
Savills reported that workspace take-up by the tech sector in Paris and the Western Crescent increased by nearly 10% in 2016 compared with the year-earlier period. During the same period, the share of tech take-up in the ninth arrondissement (pictured) went from 11% to 21%, fuelled by both large digital companies and young start-ups.
Lydia Brissy, director of European Research at Savills, said: 'Demand from tech occupiers for workspace in Paris has been rising over the past three years, since the government initiated a campaign to promote France as a new βDigital Republicβ. The big names like Google, Amazon and Apple, have clustered in the ninth arrondissement, which is one of the best connected areas in central Paris and particularly attractive for talent, which is a driving factor for this sector.'
Due to a shortage of sizeable workspace available in the CBD, some of the larger tech companies have chosen locations outside of the ninth arrondissement, which is the case with Ebay, Blablacar and Facebook, who have all located in the second arrondissement. Serge Vayer, head of tenant representation at Savills France, said: 'In the search for lower rents, medium sized tech companies often locate in the northern or eastern part of the ninth arrondissement, which is close to, but outside of the CBD. Young start-ups will tend to choose co-working spaces, which are flourishing in the French capital.'
Later this year France will launch the French Tech Visa aimed at attracting international talent from the tech sector and facilitating their arrival in France, whether they are entrepreneurs, employees or investors. As a result of the city mobilising towards accommodating this sector, capital invested in tech start-ups in Paris in the first nine months of 2016 increased by 71% y-o-y, and in the past three years the volume of venture capital raised has tripled.
'Government initiatives in France and the city's commitment to embracing the digital era are driving demand for workspace in Paris, which in turn is triggering the development of more peripheral clusters,' Vayer said. In April, for example, Station F, the world's biggest start-up campus will open its doors in the 13th arrondissement. Launched by Xavier Niel, this innovative concept will welcome young start-ups under one roof in a gigantic office space of almost 34,000 sq m within the former Halle Freyssinet of Paris. Facebook recently decision to move in 80 employees and 15 start-ups.
