The maturation of the coworking market showcases a more and more perceivable split between two kind of players :
- well funded growing coworking brands, with a multi-location strategy, on the one hand
- locally rooted independent coworking spaces with a more focused identity and community, on the other hand.
The pattern gets confirmed is a steadily growing number of metropoles around the globe London, Berlin, NYC, Chicago, Singapore, Sydney, Shanghai and many more.
Paris is no exception.
As much as 10 football fields to open in 2017
According to the study, close to 70.000 m2 of coworking space are to open in 2017. “It’s as much as the total coworking openings we have seen in the Paris ragion in 5 years“, underlines the firm.
Whitin the last 24 months, the coworking offering increaseded by 167%.
The number of coworking spaces ninefolded, from 20 spaces in 2012 to a total of 177 in 2017 !
“Nowadays, a mere 7% of the digital natives’ population (18 to 30 years old) consider to work from a traditional office”, observes the Arthur Loyd study.
Growth equally supported by branded and independent coworking spaces
Who drives the market up ?
According to the study, the parisian market is evenly divided in terms of the number of spaces between the independent and the branded coworking spaces (WeWork, Spaces, etc.).
Independent coworking spaces in Paris started to ignite the demand seven years ago.
The rise of branded networks of coworking spaces is more recent in Paris, as it is in other major cities in Europe, Asia or America.
Meanwhile, well-known French companies and investors have invested in the building of local coworking brands, now expanding in Paris and in other major cities in France (Lyon, Marseille, Bordeaux, Lille…). Those are Nextdoor, Kwerk, NOW and some others.
Branded coworking spaces represent nowadays almost 75% of the overall coworking market in the Paris-Ile de France region, due to their multi-locations strategy.
According to the Arthur Loyd study, the main difference between the independent and branded coworking spaces lies in the average surface of the respective coworking spaces : within the Paris region, the average size of independent coworking spaces is 364 m2 as opposed to 1.061 m2 for the branded coworking spaces.
In other words, branded coworking spaces represent nowadays almost 75% of the overall coworking market in the Paris-Ile de France region, due to their multi-locations strategy.
More independent spaces located in the city’s off-centre areas
A difference surfaces as well in terms of geographical location. Whereas branded coworking spaces tend to open in the very center of the city, close to the most prestigious addresses, on the main avenues, a.o., independent coworking spaces are, on average, more often located in the off-centre districts.
Lease costs obviously play a role.
It means that the price of a desk for members is slightly lower within independent coworking spaces (401 € /month, on average) as opposed to the branded space with multi-location (493 € / month for WeWork), writes the report.
“Some spaces also position themselves within or close to the digital entrepreneurship hotspots or in Paris’s trendiest neighborhoods, not far from Bastille, Le Sentier or République“, comments the report.
A real impact on the real estate market in Paris
“Coworking will only absorb about 3% of the total transactions made in 2017, according to Arthur Loyd Investement. The market is generating a lot of new value, though. Landlord should take it seriously into consideration.“
For different reasons, as observe in other countries, corporations now are becoming users of coworking spaces.
Expect more growth to come in Paris.
The breakdown between Branded coworking spaces networks and independent coworking players will be a hot topic to be addressed during the upcoming Coworking Europe 2017 conference, to take place in Dublin (November 8-10).