Real estate offices : records beaten in 2000

Last year, 118.000 square metres of offices were allocated, nearly doubling last year's figure. On the other hand, the stocks fell and a shortage is going to grow within the next months.

It is a record year for the property business of offices: it is the main aspect of the assessment of the company property business established on Thursday morning by the observatory of the company property business during a meeting at the Chamber of Commerce and the Industry of Nice. In 2000, about 118 000 square metres of offices were allocated, nearly doubling the transactions made in 1999! However, 1999 already revealed to be an exceptional year. This 'record' of 2000 has never been reached for more than ten years in the Alpes-Maritimes.A fall of stocksThe year 2000 was the one of several successes such as the extension of Amadeus, the relocation of Ernst & Young and the establishment of Regus, Algeti Telecom, Cisco, Ulticomand and Vivendi. So many results which come to confirm the power of attraction of the French Riviera, particularly thanks to Sophia-Antipolis. This innovation centre has to face a growing demand from high tech companies.This good state of company property business has its reverse: at the same time, it leads to the noticeable decrease of the offer of premises available. The stock fell last year to reach 8 months of marketing only. The littoral sectors of the centre and the West of Nice are the only ones which have square metres available.Large-scale real estate transactions launchedThe building industry took initiatives late. It is particularly spectacular in Sophia Antipolis where works spread nearly everywhere. Large-scale real estate transactions have already been launched. However, allocation will only be possible in two years time. In Sophia Antipolis, real estate pressure is so important that this offer is significant enough, that large companies have already massively booked. About 50% of spaces which can be allocated within two years have already been bought!For the time being, the market of company property business remains tight. This situation of crisis might develop within the next months. The stake is to meet both the companies' demand wishing to set up on the Riviera and the needs of companies which have already set up and aim to extend. Besides, a survey conducted recently by the Observatory of company property business has clearly showed that endogenous needs are as important as for offices than for premises for the activity. The last thing to be done for local authorities and all actors of the economy (developer contractors, financiers, real estate developers, administrators…) is to gather in order to meet the demand and avoid the exceptional dynamic, which was noticed nowadays to collapse.