Paris La Défense, the public development authority that runs the area, has unveiled plans to turn up to a fifth of the office buildings into housing.
The rise in empty office space in the French capital’s business district is driving a major shift toward residential conversion. Authorities in Paris are planning to turn up to a fifth of the area’s office buildings into housing units to transform the district into a place where people can live and play.
To retain companies in France and in Western Europe we need to diversify these office landscapes of the last century, because no-one wants to work in such an environment any longer. Guice said
Converting existing skyscrapers presents engineering and design challenges. In the Le Diamant building, which Groupama Immobilier intends to transform into apartments, developers must contend with large central areas that lack natural light.
“Here you will be in the kitchen, and here is the bathroom,” said Roland Cubin, deputy CEO of Groupama Immobilier, while describing the future layout of a converted space. Regarding the windowless center of the floor, Cubin noted, “There won’t be any rooms there. Just access.”
Other obstacles for these projects include low ceilings and the requirement for more extensive plumbing systems. Cubin also highlighted regulatory difficulties, noting that when a building’s function changes, it is often treated as a new structure. This designation triggers strict requirements for fire safety, wheelchair access, and car parking.
Just how the government deals with the tax question will decide whether France will be able to convert 2% of its vacant offices or 18 to 23%. Cubin said
The movement to repurpose commercial real estate is a global phenomenon. In the United States, tax cuts for developers are driving similar transformations in cities like New York and Washington DC. In the UK, a combination of eased planning rules and tax incentives has fueled a boom in conversions.
The decline in office occupancy is linked to the widespread adoption of remote and hybrid work models. Ludovic Delaisse, CEO of the French arm of Colliers, observed that demand for office space in Paris has dropped by almost a third over the past five to six years.
Delaisse suggested that while high-rise offices remain necessary, urban centers must integrate leisure amenities such as gyms, cinemas, and restaurants to remain attractive.
People like the idea of grouping together in a centre of expertise [for work] – in tech hubs, for example. The challenge for La Défense is to be a place where you want to be, that you want to see when you leave work in the evening. Delaisse said
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