Milan Design Week 2025

Posted on April 24, 2025June 4, 2026 by damien

Milan Design Week 2025

When design becomes experience

April 24, 2025

Every year, Milan Design Week reinvents our way of perceiving space, materials, and uses. 2025 was no exception.

For a few days, the city was transformed into a living laboratory, where the past rubs shoulders with the avant-garde, and where design is no longer just looked at: it is experienced.

Parella looks back on her favorites and discoveries.

Space as narrative

In Milan, places are not simply inhabited. They are transformed, staged and transcended. From historic palazzi to confidential workshops and secret showrooms, every space becomes a medium for emotion and intention.

Leading names such as Hermès, Gucci, Loewe, Aesop or Loro Piana offer us much more than just installations: they are truly immersive experiences. Light, materials, pathways... everything is designed to create meaning. Here, furnishings don't respond to a function, they tell a story.

At Parella, we believe that this narrative approach lies at the heart of the transformation of professional spaces: thinking of furnishings as sensitive writing.

Color as manifesto

Carmine red, deep lilac, olive green, Klein blue... This year, color has spoken. No longer content to accompany, it asserts, challenges, reveals.

Far from the muted codes of the service sector, vibrant hues are making their mark, injecting contrast, emotion and warmth. What if, tomorrow, color were to become a genuine strategic tool in the service of inclusion, teamwork and even well-being in the workplace?

At Parella, this reflection resonates with our convictions: colors speak to all, but tell a story unique to each individual.

An abundance of creativity, an infinite source of inspiration

Milan Design Week gave us the opportunity to rediscover iconic houses such as DEDAR MILANO, cc-tapis, Maison Pierre Frey or Élitiswhile exploring new creative territories: those of 6AM, Garance Vallée, DIMORESTUDIO, studioutteMissing Objects and Luca Zito.

These talents, both established and emerging, share a common quest: to reenchant space. They reinvent forms, hijack materials and question uses.

A new breath of fresh air that we incorporate into our projects, fueled by this
creative effervescence.

What Milan sowed, we sow.

At Parella, we are convinced that design is a catalyst for transformation. It shapes usage, embodies values and creates new possibilities.

Every project we support draws on this fertile breeding ground of inspiration, blending aesthetics, functionality and emotion.
A look back at Milan Design Week 2025, which is transforming the way we look at things and nourishing our practice, a little more every day.

Healthy office: the impact of space on employee health

Posted on April 12, 2025June 4, 2026 by Julie

HEALTHY OFFICE: THE IMPACT OF SPACE ON EMPLOYEE HEALTH

We all spend many hours at the office.Have you ever wondered if your work environment affects your health and that of your colleagues?

April 12, 2025

Light, air, noise… the entire work environment has an impact.

You know that gray, cramped spacesdon’tinspire or motivate, and maybe, deep down, you feel like you could do more.
But it’s not easy—I get it. There are always a thousand other, more urgent priorities, and sometimes we tell ourselves that having chairs and tables is enough, right?

But in reality, a healthy space is so much more than that.
It’s a place that breathes, that feels alive, that takes care of your team just as much as it takes care of your business.

Imagine walking into your office and feeling a pleasant atmosphere that invites you to be productive without straining your body or mind.
Sounds dreamy, doesn't it?

Today, many companies are focusing on healthier workspaces - and rightly so. Well-being in the office goes beyond productivity: it has a direct impact on employees' physical and mental health.

When we think of well-being, we often imagine a yoga retreat or a quiet Sunday at home. But well-being counts at work too.

There's a strong link between the physical environment of an office and the way it makes you feel. A poorly designed space can lead to fatigue, physical pain and, worst of all, stress.

According to the WHO (World Health Organization), studies have shown that initiatives to improve the working environment reduce absenteeism by 27% and corporate health costs by 26%.

I know that sounds like a lot, but it doesn't have to mean rethinking everything. Sometimes, simple adjustments - like improving natural light or installing ergonomic furniture - can reduce absenteeism by up to 30%. And that makes sense, doesn't it?

If you spend eight hours or more every day in an uncomfortable space, it's only natural that it will eventually affect your mental and physical health. A healthy work environment reduces absenteeism and improves job satisfaction.
People want to work in a space where they feel comfortable and valued.

Elements that impact health

Natural light is one of the most important elements in designing a healthy office.

Have you ever spent a whole day in a windowless room?

Lack of light affects mood and energy.
We need natural light to regulate our biological clock, and its absence can even lead to depression.
According to a study by Cornell University's Department of Design and Environmental Analysis, employees located less than 3 meters from a window reported 84% less visual fatigue, headaches and blurred vision.

Here are some ideas for rethinking your office lighting:
- Consider adding skylights.
- Identify areas or positions exposed to excessive glare.
- Maximize use of natural light.
- Move or remove bulky furniture that blocks light.
- Eliminate faulty or flickering lighting.

The key is to combine different types of lighting, such as mood lighting and functional lighting.

Ergonomics

According to EU-OSHA (European Agency for Safety and Health at Work), MSDs (musculoskeletal disorders) are one of the most common work-related health problems in Europe.

Over 60% of European workers claim to have suffered from an MSD related to their working conditions. Ergonomics aims to design spaces and furniture that are adapted to the human body.

It's not just a question of comfort: it's a question of health. Chairs that properly support the back, desks at the right height, screens positioned at eye level... all these elements make a real difference to employees' health.

Ergonomic furniture can reduce the risk of injuries linked to poor posture and, ultimately, significantly improve well-being at work. It's a bit like a custom-made shoe: when it fits well, you can feel it right away. And when it doesn't... you feel it.

Noise reduction and acoustic design

According to the INSST (National Institute for Occupational Safety and Health), in Spain over 10% of workers are exposed to noise levels exceeding recommended limits - with potentially serious consequences for health. Open-plan offices, where everyone shares the same space, can become a real hubbub: conversations, telephones, keyboards...

Even though this type of layout encourages collaboration, it can be detrimental to concentration and quality of work. This is whereacoustic designcomes into play.
Incorporating sound-absorbing materials - such as acoustic panels or reverberation-reducing floors - helps reduce echo and ambient noise.

It's also a good idea to provide separate, quiet areas for moments of concentration or important calls.
The aim is not to achieve total silence, but tocontrol noiseto create a smoother, less stressful environment.

Air quality

The air we breathe also has a direct impact on our well-being.
Poor ventilation can lead to a build-up of carbon dioxide, causing fatigue, headaches and poor concentration.

Thethermal comfortis also an essential element of well-being at work.
Investing in efficient ventilation systems that keep the air fresh and healthy is essential.

Apreventive and corrective maintenanceis essential to ensure the smooth operation of these systems, which have a direct impact on the health, performance and concentration of our teams.

Inclusive design

A healthy workspace is also an inclusive workspace.

Aaccessible designallows everyone - including people with reduced mobility - to move around freely and feel fully integrated.

Ramps, wide corridors and adapted sanitary facilities are not luxuries: they are basic needs.basic needsto guarantee equal access and comfort for all employees.

Implementation & adaptation

Before redeveloping a space, it's important to know the reality of the terrain.

Carry out anaudit of the current work environmenthelps identify what's working well and what needs to be improved.
Tools such asinternal surveysor usage data analysis provide a clear, objective picture.

Rethinking an office doesn't have to be expensive or complicated. Sometimessmall adjustmentscan generate big changes.
The key is to have abalanced visionbetween well-being and functionality, taking into account theavailable budget. And above all: nobody knows the space better than those who work in it every day.

Listening to employeesand understanding their needs is the key to creating an environment where they really feel good.
Investing in a healthy office is not a luxury, it's a necessity.

Employees spend a large part of their lives at work, and the environment in which they work can have a profound impact on their health and well-being.impact on their health and well-being.. Making the spacemore comfortable, welcoming, functional and healthyimproves not only productivity, but alsoquality of lifequality of life.

Our favorite Paris Workspace Expo 2025

Posted on April 3, 2025June 4, 2026 by damien

Our favorite Paris Workspace Expo 2025

Parella at the forefront of innovation at the Paris Workspace Expo 2025.

April 3, 2025

Strolling the aisles of Workspace Expo, you'll discover an array of innovations, concepts and bold designs that are redefining our work and living spaces.

Europe's leading trade show for workspace furniture and fittings took place from March 25 to 27 in Paris, Porte de Versailles.

The 2025 edition, bringing together over 300 French and international brands, and attracting more than 20,500 visitors, confirmed what we are already observing among our customers: the workspace has become a lever for strategic transformation.

Our teams were on hand to pick up on weak signals, explore strong trends... and confront our convictions with those of designers, manufacturers and industry experts.

The opportunity to highlight three key issues for our customers:

- The quest for increased flexibility.
- The importance of well-being and biophilic design.
- Commitments to responsibility and circularity.

This year, our absolute favorite is the Insula modular sofa, edited by Kettal and designed by the talented Patricia Urquiola.

From the very first glance, Insula is striking for its subtle blend of softness and architectural rigor. Its fluid composition, punctuated by generously proportioned modules, evokes an invitation to conviviality and well-being.

l'Insula instantly took me back to the authentic, immersive atmosphere of my last trip to Morocco. Right in the heart of Marrakech, in a lounge where low cushions and refined textiles invited relaxation and exchange, I let myself be enveloped by the voluptuousness of the materials and the warmth of the welcome.

Like a contemporary reinterpretation of these spaces for sharing, Insula transforms each place into an invitation to meet and dialogue. Its low, horizontal structure reinforces a sense of proximity, while its organic shapes and scrolled backrest add a touch of fluidity and sensory comfort.

What particularly appealed to me was its modular, adaptive aesthetic. Insula lends itself to an infinite number of configurations, adapting to the needs of a professional lobby, a domestic living room or a sun-drenched outdoor space.

Its delicately textured upholstery and palette of natural hues sublimate the space without ever weighing it down. A manifest piece, at the crossroads of design and sensory experience, that reenchants the way we inhabit our interiors.

Building a B Corp legacy - our journey to certification

Posted on March 21, 2025June 4, 2026 by charlotte

Building a B Corp Legacy: Our Journey to Certification

In an industry often criticized for its impact on the environment, Agilité - a Parella company, was founded with the ambition to bring about positive change within the construction sector.
From the outset, Agilité- a Parella company, aimed to offer an optimal customer experience while reducing their environmental impact, which led them to apply for B Corp certification and adopt a responsible business approach.

March 21, 2025

As we reach the halfway point of B Corp 2025 month, we spoke to our Director of Operational Excellence, Kirsty Shearer, one of the founders of Agility - a Parella company and the driving force behind our B Corp certification, to find out what it means to be part of this forward-thinking, Generation B collective.

Kirsty Shearer

Director of Operational Excellence at Agilité - a Parella company

When Agilité - a Parella company was founded in 2018, the vision was clear: to create a company that prioritizes both customer satisfaction and environmental and societal stewardship. With a small team, getting everyone on board with this vision was straightforward. However, as we expanded into Europe, this became more difficult, as each country we work in has its own standards for social and environmental responsibility.

In 2019, we began exploring potential certifications to formalize Agility - a Parella company's commitment to responsible business practices, but it was difficult to find something that covered all elements of ESG. B Corp was the only framework that comprehensively addressed the company's objectives, although admittedly it was a real mountain to climb.

In 2019, we began exploring potential certifications to formalize Agility - a Parella company's commitment to responsible business practices, but it was difficult to find something that covered all the ESG elements. B Corp was the only framework that comprehensively met the company's objectives, although admittedly it was a bit of a mountain to climb.

In partnership with B Corp consultancy, A Beautiful Green, we carried out an in-depth assessment of our performance in five key areas - governance, workers, community, environment and customers - to establish a baseline, and therefore a foundation for measuring, managing and improving the company's social and environmental impact.

The journey to B Corp certification was a rigorous one, requiring two years of sustained effort to ensure that Agilité - a Parella company's long-term vision and values matched its external actions, a process that involved changes at both micro and macro levels.In December 2023, Agilité - a Parella company proudly achieved its B Corp certification, marking an important milestone in its journey towards responsible business practices. But the work doesn't stop there. In fact, we're already starting to think about our recertification in 2026.

The knowledge gained during the certification process has enabled us to implement responsible practices in everything we do. Since certification, I've taken on the role of Director of Operational Excellence, and it's my responsibility to ensure that our goal remains front and center as we continue to grow. I am building a team in the key areas of sustainability, quality, health and safety, operations, IT, governance and communications, to ensure that we continue to "walk the talk".

We work hard to surround ourselves with like-minded partners, and Agilité - a Parella company's commitment to sustainability extends beyond its projects to its entire supply chain. Our responsible purchasing program seeks out partners who share our long-term guiding principles, and with data-driven decision-making tools like Airtable, we're able to track regulatory compliance, performance and sustainability scores to ensure we're working with the right people.

With an exciting pipeline of projects in new geographies and collaborations with innovative customers, supply chain engagement is a real priority. Last year we introduced supplier forums in the UK, and we aim to extend these to all our sites by 2025. In the longer term, we are aiming for carbon neutrality by 2050, and are working with Neutral Carbon Zone (NCZ) to monitor, report and reduce emissions across our value chain. Currently a gold-certified member of the NCZ certification program, Agilité - a Parella company is aiming for platinum certification.

I truly believe that by continually raising its standards and adopting innovative practices, Agilité - a Parella company remains, as it always has been, dedicated to creating a better future for people, the environment and the global community.

Isabel Llano: "Working for users means connecting with their real needs".

Posted on March 10, 2025June 4, 2026 by Julie

ISABEL LLANO: "WORKING FOR USERS MEANS CONNECTING WITH THEIR REAL NEEDS".

Isabel Llano,Senior Consultant at Parella | The New TTS, is convinced thatlistening tounderstanding the client is essential to proposing strategic solutions that optimize workspaces.

March 10, 2025

In this interview, she discusses her career, the benefits of a tenant-centric, impartial model, and the major trends that are transforming the way we design offices.

She also shares her perspective on diversity in the industry, and the importance of empathy and adaptability.

Isabel Llano

Senior consultant atParella | The New TTS

Isabel, what attracted you to exclusive tenant representation?

My real estate career began by working with landlords and investors, but I've always been drawn to the role of consultant representing tenants.

A few years ago, I had the opportunity to join Parellaa company that exclusively defends the interests of users corporatea model that allows me to concentrate fully on their needs.

What do you enjoy most about your job?

What I find most rewarding is listening to customers, understanding their issues, and supporting them in major strategic decisions, such as choosing their head office.

Knowing that our recommendations have a direct impact on their image, optimize their costs and improve employee satisfaction makes each project unique and exciting.

What are the advantages of this exclusive model?

Our independence enables us to offer truly impartial advice.
We don't represent owners or promote assets, which eliminates any conflict of interest.

This enables us to design tailor-made solutions that balance costs, employee well-being and corporate culture.
This positioning positions us as true strategic partners, able to help our customers make important decisions with confidence.

Can you give a concrete example of how this works?

Yes, of course. I'm thinking of a specific case: a multinational company looking for a new headquarters with more space, reflecting the strength of its brand, while respecting precise budget and schedule constraints.

The company was located in a sector that didn't suit its needs.
Thanks to our independence, we were able to identify an ideal solution that was not on their initial radar, and was even initially ruled out for various reasons.

The operation wasn't easy, and we had to overcome several major obstacles.
But the result was highly satisfactory: the customer obtained the premises they wanted, boosted the commitment and productivity of their teams, and consolidated their position in the market.
Without our exclusive approach, this option would probably never have been considered.

What trends are you currently observing in the market?

Today, companies are looking for smaller premises that are closer to the city center, well served, flexible, with collaborative zones that encourage teamwork and socialization.

Quality of space, sustainability and employee well-being have become priorities.

What do you consider to be the key skills in this sector?

Adaptability, strategic analysis, agility and empathy are fundamental.

Understanding the customer and establishing a relationship of trust is just as important as knowing the market inside out.

How do you feel about being a woman in a sector that is still very male-dominated?

Personally, I work with both men and women.
For me, the most important thing is to surround myself with committed, respectful people with real values and transparency.

It's a demanding job, and it's true that real estate is still a traditionally masculine environment, but women are becoming more and more present.
What I remember is learning, progressing and experiencing new things - no matter who they come from, they're always enriching.

I'm convinced that diversity brings real value, and that the mix of men and women is indispensable.
Everyone brings different but complementary skills.
Empathy and collaboration are essential in this business.

How do you see the future of tenant representation?

I believe that this specialized model will continue to grow in importance.

Its impartiality and ability to adapt to changing business needs make it a standard of excellence in the real estate sector.

Parella Paris appoints three new Partners

Posted on February 14, 2025June 4, 2026 by charlotte

Parella Paris appoints three new Partners

Parella, a leading player in corporate real estate consultancy and professional space planning, announces the appointments of Doriane Bettinger, Laura Seng Hazan and Clément Bach as Partners in its Paris office.

February 14, 2025

"These appointments reflect the high ambitions of our Paris office, as well as the strength of our partnership model.

Thanks to their talents, each of these new Partners contributes to Parella's reputation. They are proof of our ongoing commitment to our clients, and bear witness to the richness of our growth, driven by multidisciplinarity and the constant quest for excellence and innovation", explains Olivier Neuman, Chairman of Parella.

Doriane Bettinger

With six years' experience at Parella, Doriane heads up the People & Transformation division at Parella France.
Before joining Parella, Doriane worked for the Engie group, where she developed strong expertise in organizational transformation and change management.Her teams enthusiastically help companies to deploy modern working practices that are better adapted to their needs. Her approach is always centered on people, experience and commitment. Doriane is a graduate of Université Paris Dauphine-PSL.

Clément Bach

Clément joined Parella France in 2015 as a consultant in the team of real estate valuation experts.
He then joined the team of consultants in the Real Estate Services department, where he has developed solid experience in a wide variety of projects: the strategic framing of real estate projects, the management of complex projects or the piloting of transactions involving leased or owned real estate assets. Clément is a graduate of ESPI.

Laura Seng Hazan

Laura joined Parella France's Real Estate Services department in 2011, after starting out at CBRE Global Investors. Since then, Laura has worked for clients in all sectors and of all sizes. Her in-depth knowledge of the real estate market and her ability to blend into organizations with diverse management cultures make her a recognized and appreciated specialist. Laura holds a Master 246 degree from the University
Paris Dauphine-PSL.

Conflict-free real estate consulting

Posted on February 8, 2025June 4, 2026 by Julie

WHY CHOOSE A REAL ESTATE CONSULTANT WITH NO CONFLICTS OF INTEREST?

When your company is looking fora new headquarters or renegotiating a lease, it’s common to hire a real estate consulting firm—assuming, of course, that it will put your interests first.

February 8, 2025

But what if he also represents the owner of the building you’re considering… or if he has a financial interest in other properties owned by that same owner?

It would be a bit like playinga tennis match with a chair umpire who is on the opposing team. And in every questionable situation, guess who benefits from the decision…

A very real bias... and a costly one

This situation, very common in the real estate market, raises a legitimate question:are you receiving truly objective adviceor a speech formatted toto serve the owner?

This lack of impartiality can benot only frustrating, but also costlyfor your company.

Parella TTS changes the rules of the game

That'swhyParella | The Tenant Solution(TTS) adopts a clear model:
Wework exclusively for users of professional spaces.
No ties, no mandates, no interests with owners.
No compromises.

How is our model different?

Our approach isentirely designed for the usersyou.

- Unbiased adviceevery recommendation is 100% aligned with your priorities.

- Tailor-made solutionsWe analyze your objectives to provide customized solutions.

- Comprehensive optimizationFrom lease renegotiation to finding your future headquarters, every action is designed to maximize your profits.

The result:tangible savingsandspaces perfectly aligned with your corporate culture..

Concrete benefits for users

This exclusive model delivers measurable results:

- Cost reductionunbiased negotiations guarantee the best terms.

- Offices that reflect your imageWe design spaces that embody your brand and enhance the satisfaction of your teams.

- Informed decisionsYou benefit from a complete and transparent view of the market, without any external pressure.

Why opt for a conflict-free model?

By choosing a consulting company thatworks exclusively for usersyou gain:

- Total transparencyYou know that every action is in your exclusive interest.

- Clear resultssustainable savings, efficient spaces and committed employees.

- A long-term relationshipOur approach is not transactional, it's strategic.strategic.

If you want totruly protect your company's interestscontactParella TTS.
We guarantee youindependent, committed representationexclusively at your service.

Anticipating the future of office design

Posted on January 31, 2025June 4, 2026 by charlotte

Anticipating the future of office design

The major trends that will redefine workspaces in 2025

January 31, 2025

At Parella, we've always sought to design spaces that not only meet today's needs, but also those of tomorrow. As office design debates evolve - influenced by generational transformations in the ways we work, socialize and connect - Cormac O'Sullivan, Director of Operations at Agility - a Parella company, explores in this post the major trends that will shape workspaces in 2025.

Flexibility, always at the heart of trends

Flexibility remains a fundamental pillar as traditional offices give way to versatile environments, capable of adapting to different uses throughout the day.

Modular furniture, configurable workstations and dual-use spaces enable companies to maximize their real estate while giving employees the freedom to choose how and where they work. Our recent project for Colliers Global Investors SGR Spa in Milan, Italy, perfectly illustrates this concept.

This approach generates clear benefits for all parties: owners, companies and employees. It reflects a new relationship with the traditional office, where flexibility becomes a secure investment for businesses and an aesthetically pleasing, functional space for teams.

Take, for example, our work for The Social Hub in Glasgow, a project that embodies the key office trends of tomorrow. As a certified B Corp, The Social Hub entrusted us with the creation of a dynamic, multifunctional community environment, in harmony with its concept of "hybrid hospitality". The result is an avant-garde space, celebrating both flexibility and community spirit - values that are gradually becoming central to modern office design.

Technology for comfort and durability

Intelligent integration of technology into office design is another major trend.

Connected systems, such as app-controlled lighting, climate control and presence sensors, are becoming essential. These innovations optimize the user experience while supporting sustainability goals, notably by reducing energy consumption.

For employees, it's essential that sustainable choices are intuitive and effortless. By facilitating these practices, we help companies and their teams to combine performance with positive environmental impact.

A focus on well-being

Supporting mental and physical health is now a priority.

Increasingly, offices are incorporating quiet areas, carefully designed acoustics and optimum access to natural light. In Scalapay's Italian offices, for example, zones dedicated to relaxation and concentration coexist harmoniously with elegant soundproofing elements, a far cry from traditional foam tiles.

Increase in ILAT

Posted on January 30, 2025June 4, 2026 by Sixtine Epitalon

Increase in ILAT

a silent threat to tenant businesses in the Île-de-France region.

January 30, 2025

With the steady rise in the index of rents for commercial activities (Indice des Loyers des Activités Tertiaires - ILAT), companies renting office space, particularly in the Paris region, are seeing their service charges increase.

Although this may seem a technical subject, it is one that should be at the heart of CFOs' concerns, as it has a direct impact on cash flow and budgets.

Analysis of a phenomenon and solutions to deal with it.

Michael Kaplan

Associate

Vincent Ternynck

Real Estate Services Director

An increase that weighs heavily

Since 2018, ILAT has recorded an increase of 21.62%, rising from 112.74 in the 3ᵉquarter of 2018 to 137.12 in the 3ᵉquarter of 2024.

This index, which adjusts rents for tertiary activities, follows inflationary trends and reflects the cost of construction and economic growth.

Let's take a concrete example: a company having signed a lease in 2018 for an annual rent of €300,000.

With the ILAT evolution, its rent for 2024 will reach €364,875, i.e. an increase of +€64,875.

Why is ILAT rising so fast?

Historically, ILAT was supposed to be less volatile than ICC (Indice du Coût de la Construction), long used to index commercial leases.

ILAT is based on a mixed basket including inflation (Consumer Price Index), the cost of new construction and Gross Domestic Product (GDP) in value terms. This combination was intended to mitigate extreme variations, unlike the ICC, which is based solely on the cost of construction.

Currently, ILAT is particularly sensitive to economic fluctuations, due to the combined effect of several factors:

- Inflation, which remains high since 2021, fueled by rising energy and raw material prices.

- The cost of construction, impacted by rising materials prices and environmental constraints.

- Changes in GDP, which reflect an uneven economic recovery and influence.

This dynamic highlights a central issue for companies: how to absorb these increases while other operating expenses are also rising?

Major risks for tenant companies

The impact of the ILAT increase goes beyond rents. Several risks are looming for tenant companies:

- Increased financial pressure
An unanticipated increase in rents can reduce companies' investment capacity and affect their cash flow.

- Unpredictable budget
The high volatility of the ILAT complicates budget planning, making financial projections less reliable.

- Reduced margins
Real estate often represents the second largest expense item for companies, just after salaries. In a tense economic environment, where cost control is essential, a 20% increase in an expense item as strategic as real estate can weigh heavily.

How to adapt?

To cope with this increase, companies are well advised to adopt a proactive management approach.
Here are a few avenues to explore:

- Anticipate ILAT increases in budget forecasts

CFOs need to factor anticipated ILAT increases into their budgets. With an average annual increase of 3-4%, planning over 3 to 5 years becomes crucial.

- Negotiate leases

When signing or renewing a lease, negotiate more protective clauses, for example by capping indexation (e.g., at 2-3% per annum upwards or downwards).

- Optimize office space use

With the spread of telecommuting and hybrid ways of working, the question of leased space is essential. Reducing a €364,875 rent by 10% saves €36,487 a year in rent alone. Controlling surface area will also save on charges and taxes.

- Diversify locations

If business allows, explore locations outside the most expensive areas of the Paris region. Some locations offer more affordable rents, with lower indexations.

A challenge, but also an opportunity

The ILAT increase is a reality that all companies have to face.

While the risks are significant, they can be transformed into opportunities. Optimizing space, renegotiating lease clauses, or even reinventing real estate organization are all levers that can be used to lighten this burden.

To remain competitive, companies need to adopt a proactive and strategic approach. Above all, they need to bear in mind that real estate, although costly, can be a lever for attractiveness and performance, if carefully managed.

IN BRIEF

- ILAT has risen by +21.62% since 2018.

- A company with an annual rent of €300,000 in 2018 could be paying €64,875 more in 2024.

- Solutions lie in anticipation, negotiation and optimization of leased space.

Acting now is essential to limit future impacts and better control costs.

Category: Blog