Business centres: a new trend in the age of roaming

Another analysis by Xerfi, France's leading provider of sector and business research, confirms good medium-term growth prospects, despite the crisis that affected business centres in 2009-2010. Logically, operators should benefit from a number of favourable economic factors. According to the study, the economic recovery, albeit weak, is encouraging business expansion plans and supporting demand. The upturn in business travel is also playing a positive role for business centres. Especially as companies are tending to refocus on their core business, flexibility is now paramount. So, with their offer of shared spaces, flexible rental periods and surface areas, virtual offices and à la carte services, business centres are meeting their expectations.

Changing attitudes and the advent of new technologies are also playing in favour of virtual offices. With the development of teleworking, nomadism and videoconferencing, companies are looking for solutions that are better than a permanent office. Bruno Rebillé, vice-president of Synaphe, explains: "A true reflection of the business climate, business centres and domiciliation centres are evolving to keep pace with the dominant trends in a rapidly changing market. The move away from a purely property-based offering towards the integration of high added-value services is one of the key areas of development. The traditional office may still have a bright future ahead of it, but it is becoming increasingly dematerialised.

The potential for development is all the greater given that the French market is relatively new - at most thirty years old - compared with the American and British markets. In the UK, for example, business centres account for between 3 and 4 million m2, while Synaphe's 250 members account for just 250,000 m2 of serviced office space. But the growth prospects are significant. Estimated to generate sales of nearly €400 million, the French market is booming, boosted in particular by customers from emerging countries, particularly Asia. "We have more and more international customers who only want to pay for what they use".says Bruno Rebillé.

 

In this still fragmented market, Xerfi distinguishes three main categories of player. Firstly, the Anglo-Saxon leaders Regus and Servcorp, who are the most international and generate the highest average revenues per centre. Regus consolidated its undisputed leadership in France following the acquisition of BFI and Argyll in 2010. Next come the French pure players - Multiburo, Ateac, NCI and Sofrapart - whose strong local roots are one of their main competitive advantages. Lastly, there are groups of independents, such as Buro Club, which rely on extensive national networks. As in the hotel sector, standards have been introduced to clarify the profession. These make it possible to identify market players, monitor service quality and combat money laundering. In 2008, this was the case with the AFNOR NF X50-772 standard governing the services of corporate accommodation professionals. At the same time, since 2011, domiciliaries have been required to obtain approval from the Prefecture in order to operate. Beyond these standards, it's the changing world of work that is taking business centres with it. "Today's businessmen and women need to be able to work anywhere, anytime, anywhere in the world".says Frédéric Bleuse, Managing Director of Regus France. In line with this trend, coworking - several open-plan offices shared by several customers from different sectors - is developing in business centres, which are becoming places for exchanging ideas and networking.

 

 

Guillaume Piot, an independent entrepreneur specialising in information systems services, is one of Regus' loyal coworkers. "This formula allows me to optimise my working time between two appointments, with the added bonus of a semi-professional environment that's not found in cybercafés or other public places. So I can work with peace of mind and talk to other members. For example, today I had interviews at La Défense, then at the end of the day another appointment in the Madeleine district. Each time, I found a business centre nearby where I could check my emails and write my reports.

 

These coworking spaces meet the real needs of companies in terms of information and winning over potential customers. Thanks to this system, companies in the same business and domiciliation centre can meet up and share their experiences to create synergy and even find business opportunities. Business and domiciliation centres are stepping up their initiatives to bring the coworking community to life. Many of them organise workshops, seminars or breakfasts for coworkers. At these events, professionals from the worlds of tax and law, for example, provide invaluable advice to businesses. Among the plethora of topics covered are how to draw up company articles of association, how to approach your banker and how to optimise your communications. Coworking is proving to be a friendly and effective way of enriching your professional network. That's why it's one of the key areas of development for some business centres and registered offices, which include it in their range of high added-value services. New technologies are another key area for the future. Remote telephony, broadband internet, videoconferencing, telepresence... all these are now part of the multi-service package offered by business centres. This adaptation to a new form of management also has the advantage of being a 'green' solution for companies. By reducing staff travel, rationalising workspaces and pooling services, companies are helping to cut CO2 emissions. This eco-responsible approach is supported by an increasingly dense national network of business centres and domiciliation centres, ensuring that their customers can find a space close to their employees' homes.

 

To be even closer to mobile professionals, Regus, after having entered into a partnership with the SNCF to set up centres in the heart of railway stations, has signed an agreement with Shell to open business areas in service stations located along European motorways. The first opening took place at Limours-Janvry, on the A10, south-west of Paris. Travelling customers, with either a day pass purchased on the spot or a Regus Businessworld card, can access a space of around 45 m2 where they will find a high-speed internet connection, a fax scanner-photocopier, a virtual concierge and a messaging system for sending documents. They can also print files from their laptop, smartphone or tablet.

 

Regus intends to go even further in its approach to supporting its members. Indeed, this major player in the sector has taken as its starting point the observation that in France, 56 % of employees work more than 9 hours a day, that 83 % take work home to finish in the evening and that, of these, 46 % do so more than three times a week. Regus is therefore studying the possibility of locating its business centres close to employees' homes, particularly in the major suburbs, not only in the Paris region, but also in cities such as Bordeaux, Montpellier and Strasbourg. Opening these sites would save employees long journeys by road or rail, saving time and energy and enhancing their well-being. Major groups such as La Poste and Bouygues are already working on such projects. For Frédéric Bleuse, "the boundary between private and professional life has become much thinner. While our study shows that teleworkers and nomadic professionals are generally at their posts for longer, there is every reason to believe that they now feel less pressure in their various tasks. They also spend less time travelling, which means they can spend a few extra hours at work. Companies that allow their employees to work in premises closer to home, and thus manage their time more independently, can alleviate the pressure felt by the imbalance between private and professional life and count on a more productive and more involved workforce."

 

While the well-being of employees contributes to an employer's image, a prestigious address is just as important. Servcorp, for example, locates its sites in sought-after areas and beautiful buildings. In France, the Australian group has three centres in Paris: square Édouard VII, boulevard Haussmann and avenue des Champs-Élysées, on the fifth floor of the Louis Vuitton building. "We have a high-end international clientele, particularly American and Japanese."says Doriane Pieragnoli, Director of Virtual Offices at Servcorp. In two years, Servcorp has grown from 75 business centres worldwide to over 170, thanks in particular to its conquest of the American market. All its establishments are completely renovated when they are acquired. The materials used are obviously top-of-the-range: marble, granite, Chesterfield armchairs, exhibitions of works of art, etc.

There are no packaged offers here, just tailor-made solutions. In addition to the standard services of a business centre, the group offers an executive assistant, a laundry service, the possibility of booking a hotel room, a taxi, train or plane tickets, etc. Virtual office customers have an address and a telephone number to which a dedicated receptionist responds immediately according to their instructions.

 

Darren Tuohy, Director at Motorola Australia Pty Limited explains "have chosen Servcorp for their exceptional professionalism. The specified level of service has been met to the letter, often exceeding our expectations. Our requirements, from the most basic meetings to the most prestigious receptions, have been met in record time and with the highest level of professionalism."In particular, the manager was impressed by the quality of the reception services, the fact that all calls and visitors are greeted in Motorola's name, that the attendants know the names of all his employees and, finally, that in the eyes of visitors, these offices belong to his company and not to a business centre.

 

Alain Choppy, manager of Buro Club Paris Vendôme on rue de Casti glione, believes that, even more than a prestigious address, it is the quality of the staff and services that make the difference. "We take all messages from our customers and nearly 70 % of those who have left us to set up their own offices have kept a virtual address with us."he stresses.

 

Still at the top end of the market, but in a confidential version, Kadrance likes to talk about 'homes to live in' rather than business centres. Housed in an Art Deco building in the heart of what was once New Athens, on the lower slopes of Montmartre, there is nothing to distinguish the façade from the other buildings. Once through the door, visitors are greeted by atmospheric music and shimmering tones. Wide picture windows, soft armchairs and sofas, a fireplace, a winter garden... everything is designed to make customers feel at home! "90 % of our customers found out about us by word of mouth".says manager Alexandra Bouigue. Spread over 1,800 m2, the business centre has around fifteen offices, all equipped with the latest technology.

 

In the same spirit, Alexandra Bouigue has opened "Oh! 31", a 100 m2 New York loft-style flat just a stone's throw away on rue des Martyrs, ideal for meetings of 4 to 16 people. "It's my own little confidential address!says the dynamic manager. Here too, little extras such as unlimited water and coffee, seasonal fruit, iced tea in summer and free access to the meeting rooms are offered to "residents", as Alexandra Bouigue likes to call her members.

 

From the simple rental of fully-equipped offices to top-of-the-range services, today's business centres meet most companies' needs. Looking to the future, Bruno Rebillé compares the business to the hotel industry: "the very essence of our business is service. The difference between the various service providers will be based on the quality of that service and our ability to innovate, both in terms of our services and our technology...".