The real estate market in Europe is constantly changing. This translates into great advantages for businesses worldwide as much of Europe strives to meet the property needs of growing and expanding companies.

Businesses are finding unique locations in turnkey facilities, such as the innovative call centers offered by France Telecom in Paris. Additionally, many of Europe's airports, such as Germany's Frankfurt Airport or Le Dome in Paris, provide an environment where a variety of international businesses can flourish.

Elsewhere around Europe, cities are working to spruce up the infrastructure of their vintage architecture to meet the demands of modern businesses.

Business parks and buildings withgreater amenities are also starting to spring uparound Europe in an effort to especially attract American investment.

“The growing demand for more modern facilities by European and American companies prompting landlords to offer smarter buildings built more to the specs these companies require," said Doug Spilman, director of DTZ Staubach Tie Leung, a Cupertino, Calif.,-headquartered company, which provides real estate services in 33 countries and over 140 cities worldwide. “At the same time, there is historically a two to three year delay felt between the U.S. and Europe, led by the UK, in professional trends and some business practices."

It is important to remember that securing a property in Europe is not the same experience as what it might be in the United States.

Businesses considering an overseas site would be wise to do their homework and get a grip on the advantages and challenges of an overseas location.

The heat is on

It is crucial for American businesses considering a European location to examine and understand the vast differences between the United States and Europe when it comes to real estate.

For one thing, competition for available space is fierce in many parts of Europe.

Paris is a prime example. While the city is considered to be a prestigious business address, actually acquiring a business address there could be a bit daunting.

The city's vacancy rate is less than one-half of 1 percent for new Class A office space, according to Spilman.

Additionally, a landlord can expect to have six to eight interested parties vying for a piece of property. This leads to businesses – in effect – “selling" the merits of their company and industry to the landlord.

“Because tenants are lined up and ready to pay premium prices for these properties, landlords are not looking to negotiate terms of the lease, but are merely interested in those companies that can make up their minds the fastest," said Spilman.

While available space is a rare commodity in many areas of Europe, other locations like Milan, Italy and Zurich, Switzerland, have greater real estate availability, and hence more negotiating flexibility. Frankfurt, Brussels and Stockholm have even greater growth potential, according to Spilman.

American influence affects new properties

Some countries in Europe seem to be setting their real estate sights on a business environment patterned after the United States.

“There is more Americanization in Europe taking place," said Alan L. Bain, president of New York-based World-Wide Business Centers, which provides office space and support services to businesses worldwide.

Bain says that changes in attitudes have an important impact on the design and construction of new business space.

“A major trend that is very significant is the whole change of attitude in the real estate industry itself, to be a serviced or alternative office environment," said Bain. “They resisted it for years and years but now they see that not only does the industry meet a demand, but their clients are demanding that they provide this kind of infrastructure within the building.

“The commercial office property market is changing and expectations and needs are changing."

Property developers are seeking to improve telecommunications infrastructure, as well as add other amenities in buildings for today's businesses. This includes such luxuries as air conditioning, which is a customary amenity in the United States.

“Air-conditioning was not standard in Europe," said Bain.

Additionally, Bain said that many European countries would not allow interior space.

“For example, many times your floor plan has to give everyone access to natural light, which means you have to build a building with an exterior core and interior core to accommodate that," said Bain.

Businesses Flock to Canary Wharf

“The one thing that is very clear," said Bain, “is that there is a definite lack of what we would call Class A U.S.-type buildings with reasonable floor plans."

However, this is all part of the mentality that is changing.

Bain cites the hugely successful Canary Wharf development in London as a stellar example of what smart building and new thinking can achieve.

“One reason why Britain has remained, in my opinion, at the forefront of the financial services industry is that the Reichmanns very brilliantly some years ago built Canary Wharf as a prime example of top quality American space," said Bain. “If you go there now, all of the major American investment and banking firms are there."

The first tenants moved to Canary Wharf in 1991, where approximately 5.8 million square feet of office and retail space has been constructed to date. More development is already planned for the 84-acre site, which is now the business address for 28,000 people.

The estate received its name because when in use as a dock, many of the imports were from the Canary Islands.

Companies that have planted roots at the site include Morgan Stanley Dean Whitter, Edward Jones, Bank of New York, Citigroup, and Texaco Limited.

“Had they not taken the risk to do that, London would not be where it is today," said Bain.

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