Montpellier: the attractive metropolis but lacking supply for business real estate

For ten years, business interest in the city of Montpellier has continued to grow. However, new societal and environmental issues are gradually changing the real estate market.

A few days ago, the Real Estate and Business Land Observatory (OIE) of Montpellier and its territory returned its results on the state of the market in the 1st half of 2022. It is with these data frozen in the time that Nicolas Huet, manager of the company Tertia Conseils – CBRE and member of the OIE for almost twenty years, takes stock of the real estate market for professionals in Montpellier and its surroundings.

A more than positive result, since purchase and sale transactions on the Commercial Real Estate market continue to climb. “For almost ten years, we have recorded an almost constant increase outside the covid period. In the past, we recorded 70,000m2 placed in total, today, we are at more than 100,000m2 over the half-year”says Nicolas Huet.

In pole position on the Montpellier market, the purchase and sale of premises intended for corporate offices, mainly concentrated in the East and in the city centre, is doing more than well. “We are catching up with the delay incurred by the covid. And there are major centers of interest, I am thinking in particular of one of the biggest signatures of this semester by the SNCF in the offices which will be delivered to the New Saint Roch district, in next to the station.” This attraction can also be observed for business premises and warehouses. “We feel that those who hesitated to sign are getting started, and it will be even more important in 2022 I think”continues Nicolas Huet.

Nicolas Huet, manager of Tertia Conseils, delivers his analysis of the Commercial Real Estate market in the Metropolis.
Free lunch

Green trends and stand-by projects

However, if the demand is not lacking, the supply is considerably reduced, suggesting a much less flamboyant second half. “This drop in supply is observed in many large cities, such as Marseille and Bordeaux.” A shortage can partly be explained by the results of the last municipal elections, according to the expert.

“It’s linked to new governance, and the ecological trends that have imposed themselves in 2020. There is a questioning of urbanization, certain projects are put on stand-by. But it is an area in high demand, more than offices. As soon as a developer commits something to the business areas of Sète or Mauguio, everything goes very quickly.”

Lack of products, lack of land. However, the period is particularly conducive to this kind of installation. “E-commerce, which needs these buildings and warehouses for deliveries, has really accelerated in the past two years.”

But Nicolas Huet remains calm, if the offer is lacking immediately, everything should be back to normal from 2023. “There are projects launched in the Ode à la mer or Cambacérès areas which will be very interesting in the years to come. This shortage of supply is only temporary.” The goal, “maintain this visibility and not lose this very good momentum”.

Well-being at work, a new criterion for professionals

Larger rooms, kitchens, relaxation areas and, sometimes, games, with table football and XBOX as a bonus. If the notion of well-being at work won over start-ups in the 2000s, it has now slipped into the list of concerns of a large number of French business owners. “Professionals are looking for more premises with outdoor spaces, such as patios or loggias. They want informal meeting rooms, roof tops, things like that. It’s a way for them to attract young people and retain their teams. “supports Nicolas Huet.

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